UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-3855
Fidelity Advisor Series VIII
(Exact name of registrant as specified in charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Scott C. Goebel, Secretary
82 Devonshire St.
Boston, Massachusetts 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | October 31 |
| |
Date of reporting period: | April 30, 2011 |
Item 1. Reports to Stockholders
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Diversified International
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense Ratio | Beginning
Account Value
November 1, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010 to April 30, 2011 |
Class A | 1.31% | | | |
Actual | | $ 1,000.00 | $ 1,134.20 | $ 6.93 |
HypotheticalA | | $ 1,000.00 | $ 1,018.30 | $ 6.56 |
Class T | 1.55% | | | |
Actual | | $ 1,000.00 | $ 1,133.00 | $ 8.20 |
HypotheticalA | | $ 1,000.00 | $ 1,017.11 | $ 7.75 |
Class B | 2.08% | | | |
Actual | | $ 1,000.00 | $ 1,129.90 | $ 10.98 |
HypotheticalA | | $ 1,000.00 | $ 1,014.48 | $ 10.39 |
Class C | 2.05% | | | |
Actual | | $ 1,000.00 | $ 1,130.10 | $ 10.83 |
HypotheticalA | | $ 1,000.00 | $ 1,014.63 | $ 10.24 |
Institutional Class | .99% | | | |
Actual | | $ 1,000.00 | $ 1,135.80 | $ 5.24 |
HypotheticalA | | $ 1,000.00 | $ 1,019.89 | $ 4.96 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Royal Dutch Shell PLC Class B (United Kingdom, Oil, Gas & Consumable Fuels) | 3.4 | 2.9 |
BHP Billiton Ltd. sponsored ADR (Australia, Metals & Mining) | 2.0 | 1.7 |
Novo Nordisk A/S Series B (Denmark, Pharmaceuticals) | 1.8 | 1.4 |
SOFTBANK CORP. (Japan, Wireless Telecommunication Services) | 1.6 | 1.0 |
HTC Corp. (Taiwan, Communications Equipment) | 1.6 | 0.9 |
| 10.4 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 20.6 | 20.9 |
Consumer Discretionary | 16.1 | 15.6 |
Energy | 11.6 | 11.4 |
Industrials | 10.5 | 8.1 |
Materials | 10.5 | 10.2 |
Top Five Countries as of April 30, 2011 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 17.0 | 18.0 |
Japan | 13.8 | 11.9 |
Germany | 7.9 | 7.6 |
France | 6.0 | 6.9 |
United States of America | 5.5 | 7.6 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011 | As of October 31, 2010 |
 | Stocks 99.5% | | | Stocks 97.7% | |
 | Other Investments 0.0%* | | | Other Investments 0.0% | |
 | Short-Term
Investments and
Net Other Assets 0.5% | | | Short-Term
Investments and
Net Other Assets 2.3% | |
* Amount represents less than 0.1%.
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.9% |
| Shares | | Value (000s) |
Argentina - 0.0% |
Banco Macro SA sponsored ADR | 29,792 | | $ 1,102 |
Australia - 3.8% |
AMP Ltd. | 1,680,003 | | 10,095 |
BHP Billiton Ltd. sponsored ADR (d) | 697,400 | | 70,605 |
CSL Ltd. | 203,585 | | 7,668 |
Newcrest Mining Ltd. | 708,686 | | 32,210 |
QBE Insurance Group Ltd. | 460,000 | | 9,437 |
Westfield Group unit | 550,000 | | 5,440 |
TOTAL AUSTRALIA | | 135,455 |
Bailiwick of Guernsey - 0.9% |
Ashmore Global Opps Ltd. | 130,000 | | 1,047 |
Resolution Ltd. | 6,240,582 | | 31,554 |
TOTAL BAILIWICK OF GUERNSEY | | 32,601 |
Bailiwick of Jersey - 1.7% |
Experian PLC | 1,565,200 | | 21,086 |
Randgold Resources Ltd. sponsored ADR | 90,400 | | 7,826 |
United Business Media Ltd. | 1,112,300 | | 11,222 |
WPP PLC | 1,479,369 | | 19,378 |
TOTAL BAILIWICK OF JERSEY | | 59,512 |
Belgium - 0.9% |
Ageas (d) | 1,129,057 | | 3,427 |
Anheuser-Busch InBev SA NV (d) | 439,345 | | 28,039 |
TOTAL BELGIUM | | 31,466 |
Bermuda - 1.5% |
Assured Guaranty Ltd. | 434,900 | | 7,393 |
Clear Media Ltd. (a) | 13,774,000 | | 8,424 |
CNPC (Hong Kong) Ltd. | 1,156,000 | | 2,048 |
Huabao International Holdings Ltd. | 8,566,000 | | 12,706 |
Li & Fung Ltd. | 2,934,000 | | 14,998 |
Noble Group Ltd. | 3,219,000 | | 5,864 |
TOTAL BERMUDA | | 51,433 |
Brazil - 2.3% |
Anhanguera Educacional Participacoes SA | 112,100 | | 2,494 |
Banco Bradesco SA (PN) sponsored ADR | 475,000 | | 9,609 |
Banco Santander (Brasil) SA ADR | 590,000 | | 6,850 |
BM&F Bovespa SA | 962,100 | | 7,222 |
Droga Raia SA | 41,000 | | 631 |
Drogasil SA | 779,400 | | 5,598 |
Common Stocks - continued |
| Shares | | Value (000s) |
Brazil - continued |
Estacio Participacoes SA | 210,300 | | $ 3,074 |
Itau Unibanco Banco Multiplo SA sponsored ADR | 604,300 | | 14,352 |
Mills Estruturas e Servicos de Engenharia SA | 191,000 | | 2,610 |
Petroleo Brasileiro SA - Petrobras (ON) sponsored ADR | 87,200 | | 3,255 |
Souza Cruz Industria Comerico | 500,000 | | 5,622 |
T4F Entretenimento SA | 212,800 | | 2,029 |
TIM Participacoes SA sponsored ADR (non-vtg.) | 140,900 | | 6,648 |
Usinas Siderurgicas de Minas Gerais SA - Usiminas (PN-A) (non-vtg.) | 8,400 | | 86 |
Vivo Participacoes SA sponsored ADR | 197,700 | | 8,266 |
Weg SA | 136,900 | | 1,714 |
TOTAL BRAZIL | | 80,060 |
British Virgin Islands - 0.2% |
Arcos Dorados Holdings, Inc. | 177,300 | | 3,906 |
Camelot Information Systems, Inc. ADR | 225,500 | | 4,352 |
TOTAL BRITISH VIRGIN ISLANDS | | 8,258 |
Canada - 5.0% |
Barrick Gold Corp. | 95,000 | | 4,852 |
Canadian Natural Resources Ltd. | 441,100 | | 20,752 |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 18,000 | | 7,270 |
Goldcorp, Inc. | 190,200 | | 10,633 |
InterOil Corp. (a)(d) | 102,500 | | 6,519 |
Ivanhoe Mines Ltd. (a) | 445,960 | | 11,695 |
Niko Resources Ltd. | 227,100 | | 19,191 |
Open Text Corp. (a) | 162,200 | | 9,937 |
Osisko Mining Corp. (a) | 400,000 | | 5,856 |
Painted Pony Petroleum Ltd. (a)(e) | 170,900 | | 1,799 |
Painted Pony Petroleum Ltd. Class A (a) | 900,000 | | 9,475 |
Petrobank Energy & Resources Ltd. | 576,300 | | 12,195 |
Petrominerales Ltd. | 325,914 | | 12,474 |
Suncor Energy, Inc. | 303,400 | | 13,985 |
Talisman Energy, Inc. | 821,200 | | 19,833 |
Tourmaline Oil Corp. (a) | 125,000 | | 3,570 |
Tourmaline Oil Corp. (a)(e) | 65,800 | | 1,879 |
Uranium One, Inc. | 1,419,700 | | 5,912 |
TOTAL CANADA | | 177,827 |
Cayman Islands - 1.0% |
China Automation Group Ltd. | 1,740,000 | | 1,524 |
China ZhengTong Auto Services Holdings Ltd. | 2,608,000 | | 2,952 |
Geely Automobile Holdings Ltd. | 4,710,000 | | 1,886 |
Common Stocks - continued |
| Shares | | Value (000s) |
Cayman Islands - continued |
Hengan International Group Co. Ltd. | 992,500 | | $ 7,744 |
Hengdeli Holdings Ltd. | 7,320,000 | | 4,383 |
hiSoft Technology International Ltd. ADR (a) | 178,100 | | 3,323 |
Kingdee International Software Group Co. Ltd. | 8,020,800 | | 5,143 |
Longtop Financial Technologies Ltd. ADR (a) | 28,000 | | 632 |
Minth Group Ltd. | 816,000 | | 1,255 |
Shenguan Holdings Group Ltd. | 446,000 | | 593 |
Silver Base Group Holdings Ltd. | 2,922,000 | | 2,404 |
Want Want China Holdings Ltd. | 4,036,000 | | 3,622 |
TOTAL CAYMAN ISLANDS | | 35,461 |
China - 2.6% |
Agricultural Bank China Ltd. (H Shares) | 29,289,000 | | 17,310 |
Baidu.com, Inc. sponsored ADR (a) | 141,600 | | 21,030 |
Bank of China Ltd. (H Shares) | 16,178,000 | | 8,937 |
Changsha Zoomlion Heavy Industry Science & Technology Development Co. Ltd. (H Shares) | 2,098,800 | | 5,567 |
China Construction Bank Corp. (H Shares) | 12,208,000 | | 11,538 |
China Merchants Bank Co. Ltd. (H Shares) | 8,394,000 | | 21,616 |
Shandong Weigao Group Medical Polymer Co. Ltd. (H Shares) | 1,532,000 | | 4,202 |
TOTAL CHINA | | 90,200 |
Denmark - 3.1% |
Carlsberg A/S Series B | 198,500 | | 23,576 |
Novo Nordisk A/S Series B | 501,308 | | 63,465 |
Pandora A/S | 62,400 | | 2,811 |
William Demant Holding A/S (a) | 200,000 | | 18,646 |
TOTAL DENMARK | | 108,498 |
Finland - 0.1% |
Nokian Tyres PLC | 46,300 | | 2,400 |
France - 6.0% |
Alstom SA | 304,999 | | 20,282 |
AXA SA (d) | 644,500 | | 14,463 |
BNP Paribas SA | 252,100 | | 19,951 |
Danone | 110,800 | | 8,116 |
Essilor International SA | 185,589 | | 15,537 |
Iliad Group SA | 63,296 | | 8,137 |
L'Oreal SA | 45,400 | | 5,757 |
LVMH Moet Hennessy - Louis Vuitton | 191,793 | | 34,445 |
PPR SA | 211,900 | | 37,899 |
Publicis Groupe SA | 125,000 | | 7,084 |
Common Stocks - continued |
| Shares | | Value (000s) |
France - continued |
Safran SA (d) | 49,300 | | $ 1,913 |
Schneider Electric SA (d) | 74,191 | | 13,110 |
Societe Generale Series A | 195,000 | | 13,044 |
VINCI SA | 187,900 | | 12,552 |
TOTAL FRANCE | | 212,290 |
Germany - 6.3% |
adidas AG | 140,800 | | 10,482 |
BASF AG (d) | 225,853 | | 23,217 |
Bayerische Motoren Werke AG (BMW) | 199,468 | | 18,811 |
Commerzbank AG (a) | 340,000 | | 2,120 |
Deutsche Boerse AG | 130,300 | | 10,827 |
ElringKlinger AG | 81,300 | | 2,852 |
Fresenius Medical Care AG & Co. KGaA | 304,800 | | 23,955 |
Fresenius SE | 224,400 | | 23,553 |
HeidelbergCement AG (d) | 152,400 | | 11,655 |
Kabel Deutschland Holding AG (a) | 68,400 | | 4,275 |
Linde AG | 145,177 | | 26,148 |
MTU Aero Engines Holdings AG (d) | 52,600 | | 4,032 |
Rheinmetall AG | 57,200 | | 5,131 |
SAP AG | 156,700 | | 10,097 |
Siemens AG | 315,275 | | 45,867 |
TOTAL GERMANY | | 223,022 |
Hong Kong - 0.9% |
AIA Group Ltd. | 2,016,600 | | 6,790 |
Henderson Land Development Co. Ltd. | 998,325 | | 6,832 |
Henderson Land Development Co. Ltd. warrants 6/1/11 (a) | 259,200 | | 7 |
Swire Pacific Ltd. (A Shares) | 537,000 | | 8,201 |
Wharf Holdings Ltd. | 1,546,000 | | 11,307 |
TOTAL HONG KONG | | 33,137 |
India - 1.7% |
Axis Bank Ltd. | 154,359 | | 4,488 |
Bajaj Auto Ltd. | 62,612 | | 2,085 |
Bharti Airtel Ltd. | 435,258 | | 3,738 |
GEI Industrial Systems Ltd. | 100,000 | | 474 |
HDFC Bank Ltd. | 268,446 | | 13,925 |
Housing Development Finance Corp. Ltd. | 665,418 | | 10,627 |
Infrastructure Development Finance Co. Ltd. | 1,296,940 | | 4,258 |
ITC Ltd. | 462,016 | | 2,008 |
Mahindra & Mahindra Financial Services Ltd. | 231,785 | | 3,833 |
Punjab National Bank | 4,373 | | 125 |
Common Stocks - continued |
| Shares | | Value (000s) |
India - continued |
Shriram Transport Finance Co. Ltd. | 243,922 | | $ 4,271 |
State Bank of India | 173,282 | | 10,982 |
TOTAL INDIA | | 60,814 |
Indonesia - 0.1% |
PT Tower Bersama Infrastructure Tbk | 11,851,500 | | 3,356 |
Italy - 2.4% |
ENI SpA | 281,100 | | 7,526 |
Fiat Industrial SpA (a) | 2,319,100 | | 34,454 |
Fiat SpA | 1,008,000 | | 10,757 |
Intesa Sanpaolo SpA | 1,082,355 | | 3,594 |
Saipem SpA | 512,029 | | 29,070 |
TOTAL ITALY | | 85,401 |
Japan - 13.8% |
ABC-Mart, Inc. | 32,400 | | 1,214 |
Aozora Bank Ltd. | 691,000 | | 1,497 |
Canon, Inc. | 360,800 | | 16,989 |
Chiyoda Corp. | 400,000 | | 3,981 |
Cosmos Pharmaceutical Corp. | 113,600 | | 5,032 |
Denso Corp. | 494,100 | | 16,534 |
Dentsu, Inc. | 175,000 | | 4,654 |
eAccess Ltd. | 5,995 | | 2,830 |
Elpida Memory, Inc. (a)(d) | 987,200 | | 14,790 |
Fanuc Ltd. | 90,700 | | 15,181 |
Fast Retailing Co. Ltd. | 15,600 | | 2,459 |
Hitachi Ltd. | 2,657,000 | | 14,420 |
Honda Motor Co. Ltd. sponsored ADR (d) | 575,806 | | 22,082 |
Itochu Corp. | 653,000 | | 6,802 |
Japan Tobacco, Inc. | 5,504 | | 21,388 |
JSR Corp. | 489,300 | | 10,293 |
KDDI Corp. | 1,961 | | 13,090 |
Keyence Corp. | 73,000 | | 19,288 |
Komatsu Ltd. | 814,100 | | 28,701 |
Makita Corp. | 75,600 | | 3,476 |
Mazda Motor Corp. | 1,428,000 | | 3,279 |
Mitsubishi Corp. | 560,100 | | 15,192 |
Mitsubishi Electric Corp. | 151,000 | | 1,681 |
Mitsubishi UFJ Financial Group, Inc. | 2,539,000 | | 12,185 |
Mitsui & Co. Ltd. | 800,700 | | 14,247 |
Nintendo Co. Ltd. | 37,600 | | 8,896 |
Nitori Holdings Co. Ltd. | 48,900 | | 4,228 |
Common Stocks - continued |
| Shares | | Value (000s) |
Japan - continued |
NSK Ltd. | 764,000 | | $ 6,779 |
NTT DoCoMo, Inc. | 6,662 | | 12,359 |
ORIX Corp. | 418,140 | | 41,075 |
Rakuten, Inc. | 21,032 | | 19,527 |
ROHM Co. Ltd. | 53,200 | | 3,204 |
Shimadzu Corp. | 389,000 | | 3,379 |
Shinsei Bank Ltd. (a) | 634,000 | | 762 |
SOFTBANK CORP. | 1,344,500 | | 56,727 |
Start Today Co. Ltd. | 779,800 | | 13,631 |
Sumitomo Corp. | 335,100 | | 4,622 |
Sumitomo Mitsui Financial Group, Inc. | 297,200 | | 9,230 |
TDK Corp. | 59,300 | | 3,059 |
Tokyo Electron Ltd. | 262,100 | | 15,172 |
Yahoo! Japan Corp. | 45,226 | | 16,634 |
TOTAL JAPAN | | 490,569 |
Korea (South) - 1.5% |
Amorepacific Corp. | 10,834 | | 10,951 |
Orion Corp. | 24,271 | | 9,438 |
Samsung Electronics Co. Ltd. | 26,967 | | 22,538 |
Shinhan Financial Group Co. Ltd. | 235,400 | | 11,566 |
TOTAL KOREA (SOUTH) | | 54,493 |
Luxembourg - 0.1% |
Ternium SA sponsored ADR | 141,900 | | 4,771 |
Malaysia - 0.4% |
Genting Bhd | 1,882,300 | | 7,370 |
Hong Leong Bank Bhd | 1,666,400 | | 5,850 |
TOTAL MALAYSIA | | 13,220 |
Mexico - 0.8% |
America Movil SAB de CV Series L sponsored ADR | 221,800 | | 12,687 |
Grupo Televisa SA de CV (CPO) sponsored ADR (a) | 230,100 | | 5,458 |
Wal-Mart de Mexico SA de CV Series V | 3,662,600 | | 11,474 |
TOTAL MEXICO | | 29,619 |
Netherlands - 2.5% |
AEGON NV (a) | 2,555,700 | | 20,314 |
Gemalto NV | 190,000 | | 9,739 |
ING Groep NV sponsored ADR (a) | 1,858,100 | | 24,508 |
Koninklijke KPN NV | 735,818 | | 11,678 |
Common Stocks - continued |
| Shares | | Value (000s) |
Netherlands - continued |
Koninklijke Philips Electronics NV unit | 590,000 | | $ 17,399 |
LyondellBasell Industries NV Class A | 145,800 | | 6,488 |
TOTAL NETHERLANDS | | 90,126 |
Netherlands Antilles - 0.5% |
Schlumberger Ltd. | 210,600 | | 18,901 |
Norway - 1.3% |
DnB NOR ASA (d) | 1,191,200 | | 19,368 |
Storebrand ASA (A Shares) (d) | 600,000 | | 6,233 |
Telenor ASA | 1,156,800 | | 19,988 |
TOTAL NORWAY | | 45,589 |
Poland - 0.2% |
Eurocash SA | 416,300 | | 5,097 |
Qatar - 0.1% |
Commercial Bank of Qatar GDR (Reg. S) | 1,100,000 | | 4,422 |
Russia - 0.8% |
OAO Gazprom sponsored ADR | 868,600 | | 14,818 |
Sberbank (Savings Bank of the Russian Federation) GDR | 12,800 | | 5,105 |
Uralkali JSC GDR (Reg. S) | 219,300 | | 9,204 |
TOTAL RUSSIA | | 29,127 |
South Africa - 1.3% |
AngloGold Ashanti Ltd. sponsored ADR | 216,400 | | 11,032 |
Foschini Ltd. | 95,000 | | 1,310 |
Impala Platinum Holdings Ltd. | 132,500 | | 4,136 |
Mr Price Group Ltd. | 825,300 | | 8,443 |
Naspers Ltd. Class N | 212,100 | | 12,754 |
Shoprite Holdings Ltd. | 265,100 | | 4,177 |
Vodacom Group (Pty) Ltd. | 371,100 | | 4,537 |
TOTAL SOUTH AFRICA | | 46,389 |
Spain - 3.4% |
Banco Santander SA sponsored ADR | 3,974,000 | | 49,278 |
Gestevision Telecinco SA | 554,200 | | 6,228 |
Inditex SA | 335,571 | | 30,091 |
Prosegur Compania de Seguridad SA (Reg.) | 185,900 | | 11,358 |
Red Electrica Corporacion SA | 109,300 | | 6,974 |
Telefonica SA sponsored ADR | 631,700 | | 17,031 |
TOTAL SPAIN | | 120,960 |
Common Stocks - continued |
| Shares | | Value (000s) |
Sweden - 1.5% |
Elekta AB (B Shares) | 347,100 | | $ 15,817 |
H&M Hennes & Mauritz AB (B Shares) (d) | 561,086 | | 19,822 |
Sandvik AB (d) | 105,800 | | 2,244 |
Swedbank AB (A Shares) | 841,700 | | 15,961 |
TOTAL SWEDEN | | 53,844 |
Switzerland - 4.9% |
Clariant AG (Reg.) (a) | 623,315 | | 12,932 |
Kuehne & Nagel International AG | 166,380 | | 26,578 |
Nestle SA | 586,380 | | 36,397 |
Noble Corp. | 125,000 | | 5,376 |
The Swatch Group AG (Bearer) | 13,730 | | 6,753 |
Transocean Ltd. (a) | 220,000 | | 16,005 |
UBS AG (a) | 1,574,250 | | 31,499 |
Zurich Financial Services AG | 135,747 | | 38,128 |
TOTAL SWITZERLAND | | 173,668 |
Taiwan - 1.8% |
HTC Corp. | 1,245,000 | | 56,423 |
Taiwan Fertilizer Co. Ltd. | 2,327,000 | | 7,836 |
TOTAL TAIWAN | | 64,259 |
United Kingdom - 17.0% |
Anglo American PLC (United Kingdom) | 395,500 | | 20,615 |
Aviva PLC | 528,700 | | 3,957 |
Barclays PLC | 347,612 | | 1,653 |
BG Group PLC | 1,061,746 | | 27,197 |
BHP Billiton PLC | 453,184 | | 19,161 |
BP PLC sponsored ADR | 761,300 | | 35,126 |
British Land Co. PLC | 430,000 | | 4,313 |
Britvic PLC | 775,300 | | 5,303 |
Burberry Group PLC | 642,800 | | 13,905 |
Capita Group PLC | 805,500 | | 9,903 |
Carphone Warehouse Group PLC (a) | 1,801,600 | | 11,970 |
GlaxoSmithKline PLC | 1,865,800 | | 40,760 |
HSBC Holdings PLC sponsored ADR (d) | 864,900 | | 47,111 |
Inchcape PLC | 1,823,400 | | 11,099 |
Intertek Group PLC | 358,900 | | 12,740 |
ITV PLC (a) | 6,134,500 | | 7,793 |
Johnson Matthey PLC | 199,600 | | 6,678 |
Lloyds Banking Group PLC (a) | 32,740,500 | | 32,508 |
Misys PLC | 1,534,750 | | 8,091 |
Next PLC | 293,000 | | 10,948 |
Common Stocks - continued |
| Shares | | Value (000s) |
United Kingdom - continued |
Ocado Group PLC (a)(d) | 1,074,000 | | $ 4,062 |
Pearson PLC | 1,035,800 | | 19,853 |
QinetiQ Group PLC (a) | 1,700,000 | | 3,433 |
Reckitt Benckiser Group PLC | 797,300 | | 44,269 |
Rio Tinto PLC | 343,300 | | 25,050 |
Rolls-Royce Group PLC | 518,000 | | 5,551 |
Rolls-Royce Group PLC (C Shares) (a) | 49,728,000 | | 83 |
Royal Dutch Shell PLC Class B | 3,115,025 | | 121,193 |
SuperGroup PLC (a) | 155,800 | | 4,128 |
Vodafone Group PLC sponsored ADR | 1,492,600 | | 43,465 |
TOTAL UNITED KINGDOM | | 601,918 |
United States of America - 5.5% |
Agilent Technologies, Inc. (a) | 78,200 | | 3,903 |
Alliance Data Systems Corp. (a) | 62,900 | | 5,976 |
Apple, Inc. (a) | 71,400 | | 24,864 |
C. R. Bard, Inc. | 91,800 | | 9,800 |
Citigroup, Inc. (a) | 2,362,800 | | 10,845 |
Cognizant Technology Solutions Corp. Class A (a) | 47,200 | | 3,913 |
eBay, Inc. (a) | 220,200 | | 7,575 |
Facebook, Inc. Class B (a)(f) | 131,847 | | 3,296 |
Google, Inc. Class A (a) | 19,500 | | 10,610 |
Hasbro, Inc. | 16,100 | | 754 |
Jacobs Engineering Group, Inc. (a) | 129,900 | | 6,444 |
JPMorgan Chase & Co. | 201,200 | | 9,181 |
Kulicke & Soffa Industries, Inc. (a) | 914,200 | | 8,283 |
Medco Health Solutions, Inc. (a) | 222,300 | | 13,189 |
MEMC Electronic Materials, Inc. (a) | 129,000 | | 1,526 |
Newmont Mining Corp. | 125,000 | | 7,326 |
Resolute Energy Corp. (a) | 303,800 | | 5,374 |
SanDisk Corp. (a) | 144,300 | | 7,091 |
Schweitzer-Mauduit International, Inc. | 179,900 | | 9,326 |
The Pep Boys - Manny, Moe & Jack | 101,100 | | 1,385 |
The Walt Disney Co. | 164,500 | | 7,090 |
Unisys Corp. (a) | 239,998 | | 7,123 |
Virgin Media, Inc. | 647,900 | | 19,605 |
Wells Fargo & Co. | 323,800 | | 9,426 |
TOTAL UNITED STATES OF AMERICA | | 193,905 |
TOTAL COMMON STOCKS (Cost $2,752,759) | 3,473,170 |
Nonconvertible Preferred Stocks - 1.6% |
| Shares | | Value (000s) |
Germany - 1.6% |
ProSiebenSat.1 Media AG | 447,900 | | $ 12,827 |
Volkswagen AG (d) | 220,100 | | 43,360 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $28,448) | 56,187 |
Master Notes - 0.0% |
| Principal Amount (000s) | | |
Canada - 0.0% |
OZ Optics Ltd. 5% 11/5/14 (f)
(Cost $20) | | $ 19 | | 19 |
Money Market Funds - 7.2% |
| Shares | | |
Fidelity Cash Central Fund, 0.13% (b) | 16,759,726 | | 16,760 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 241,254,250 | | 241,254 |
TOTAL MONEY MARKET FUNDS (Cost $258,014) | 258,014 |
TOTAL INVESTMENT PORTFOLIO - 106.7% (Cost $3,039,241) | | 3,787,390 |
NET OTHER ASSETS (LIABILITIES) - (6.7)% | | (239,114) |
NET ASSETS - 100% | $ 3,548,276 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $3,678,000 or 0.1% of net assets. |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $3,315,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Facebook, Inc. Class B | 3/31/11 | $ 3,296 |
OZ Optics Ltd. 5% 11/5/14 | 11/5/10 | $ 20 |
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 | $ 50 |
Fidelity Securities Lending Cash Central Fund | 726 |
Total | $ 776 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
United Kingdom | $ 601,918 | $ 337,783 | $ 264,135 | $ - |
Japan | 490,569 | 22,082 | 468,487 | - |
Germany | 279,209 | 279,209 | - | - |
France | 212,290 | 212,290 | - | - |
United States of America | 193,905 | 190,609 | - | 3,296 |
Canada | 177,827 | 177,827 | - | - |
Switzerland | 173,668 | 142,169 | 31,499 | - |
Australia | 135,455 | 135,455 | - | - |
Spain | 120,960 | 120,960 | - | - |
Other | 1,143,556 | 984,934 | 158,622 | - |
Master Notes | 19 | - | - | 19 |
Money Market Funds | 258,014 | 258,014 | - | - |
Total Investments in Securities: | $ 3,787,390 | $ 2,861,332 | $ 922,743 | $ 3,315 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities:
(Amounts in thousands) | |
Beginning Balance | $ 24 |
Total Realized Gain (Loss) | (56) |
Total Unrealized Gain (Loss) | 55 |
Cost of Purchases | 3,321 |
Proceeds of Sales | (29) |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 3,315 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at April 30, 2011 | $ 0 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $3,277,388,000 of which $9,101,000 and $3,268,287,000 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
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, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $230,069) - See accompanying schedule: Unaffiliated issuers (cost $2,781,227) | $ 3,529,376 | |
Fidelity Central Funds (cost $258,014) | 258,014 | |
Total Investments (cost $3,039,241) | | $ 3,787,390 |
Foreign currency held at value (cost $200) | | 202 |
Receivable for investments sold | | 358 |
Receivable for fund shares sold | | 2,403 |
Dividends receivable | | 17,019 |
Distributions receivable from Fidelity Central Funds | | 234 |
Prepaid expenses | | 4 |
Other receivables | | 362 |
Total assets | | 3,807,972 |
| | |
Liabilities | | |
Payable for investments purchased | $ 1,773 | |
Payable for fund shares redeemed | 10,239 | |
Accrued management fee | 2,057 | |
Distribution and service plan fees payable | 939 | |
Other affiliated payables | 853 | |
Other payables and accrued expenses | 2,581 | |
Collateral on securities loaned, at value | 241,254 | |
Total liabilities | | 259,696 |
| | |
Net Assets | | $ 3,548,276 |
Net Assets consist of: | | |
Paid in capital | | $ 5,861,850 |
Undistributed net investment income | | 13,572 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (3,073,434) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 746,288 |
Net Assets | | $ 3,548,276 |
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, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($1,246,429 ÷ 71,351 shares) | | $ 17.47 |
| | |
Maximum offering price per share (100/94.25 of $17.47) | | $ 18.54 |
Class T:
Net Asset Value and redemption price per share ($580,277 ÷ 33,520 shares) | | $ 17.31 |
| | |
Maximum offering price per share (100/96.50 of $17.31) | | $ 17.94 |
Class B:
Net Asset Value and offering price per share ($138,343 ÷ 8,286 shares)A | | $ 16.70 |
| | |
Class C:
Net Asset Value and offering price per share ($411,890 ÷ 24,599 shares)A | | $ 16.74 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,171,337 ÷ 65,991 shares) | | $ 17.75 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 39,953 |
Special dividends | | 12,968 |
Interest | | 1 |
Income from Fidelity Central Funds | | 776 |
Income before foreign taxes withheld | | 53,698 |
Less foreign taxes withheld | | (2,674) |
Total income | | 51,024 |
| | |
Expenses | | |
Management fee | $ 12,811 | |
Transfer agent fees | 4,602 | |
Distribution and service plan fees | 5,830 | |
Accounting and security lending fees | 760 | |
Custodian fees and expenses | 335 | |
Independent trustees' compensation | 9 | |
Registration fees | 111 | |
Audit | 66 | |
Legal | 7 | |
Miscellaneous | 20 | |
Total expenses before reductions | 24,551 | |
Expense reductions | (364) | 24,187 |
Net investment income (loss) | | 26,837 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 236,571 | |
Foreign currency transactions | (266) | |
Total net realized gain (loss) | | 236,305 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $228) | 190,125 | |
Assets and liabilities in foreign currencies | 218 | |
Total change in net unrealized appreciation (depreciation) | | 190,343 |
Net gain (loss) | | 426,648 |
Net increase (decrease) in net assets resulting from operations | | $ 453,485 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 26,837 | $ 38,199 |
Net realized gain (loss) | 236,305 | 465,302 |
Change in net unrealized appreciation (depreciation) | 190,343 | (92,787) |
Net increase (decrease) in net assets resulting
from operations | 453,485 | 410,714 |
Distributions to shareholders from net investment income | (45,397) | (59,773) |
Distributions to shareholders from net realized gain | (8,026) | (3,252) |
Total distributions | (53,423) | (63,025) |
Share transactions - net increase (decrease) | (666,779) | (1,259,295) |
Redemption fees | 32 | 104 |
Total increase (decrease) in net assets | (266,685) | (911,502) |
| | |
Net Assets | | |
Beginning of period | 3,814,961 | 4,726,463 |
End of period (including undistributed net investment income of $13,572 and undistributed net investment income of $32,132, respectively) | $ 3,548,276 | $ 3,814,961 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 15.63 | $ 14.25 | $ 12.57 | $ 26.62 | $ 23.42 | $ 20.30 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .12 J | .14 | .17 | .36 | .31 | .30 |
Net realized and unrealized gain (loss) | 1.95 | 1.44 | 1.96 | (11.15) | 4.69 | 3.91 |
Total from investment operations | 2.07 | 1.58 | 2.13 | (10.79) | 5.00 | 4.21 |
Distributions from net investment income | (.20) | (.19) | (.45) | (.24) | (.23) | (.14) |
Distributions from net realized gain | (.03) | (.01) | - | (3.02) | (1.57) | (.95) |
Total distributions | (.23) | (.20) | (.45) | (3.26) | (1.80) | (1.09) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 17.47 | $ 15.63 | $ 14.25 | $ 12.57 | $ 26.62 | $ 23.42 |
Total Return B, C, D | 13.42% | 11.17% | 18.16% | (45.95)% | 22.76% | 21.54% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.31% A | 1.32% | 1.34% | 1.26% | 1.25% | 1.26% |
Expenses net of fee waivers, if any | 1.31% A | 1.32% | 1.34% | 1.26% | 1.25% | 1.26% |
Expenses net of all reductions | 1.29% A | 1.30% | 1.31% | 1.22% | 1.21% | 1.20% |
Net investment income (loss) | 1.53% A,J | .95% | 1.43% | 1.80% | 1.26% | 1.33% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 1,246 | $ 1,302 | $ 1,662 | $ 2,004 | $ 5,774 | $ 4,694 |
Portfolio turnover rate G | 50% A | 59% | 92% | 88% | 105% | 83% |
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 Investment income per share reflects special dividend which amounted to $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .81%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 15.47 | $ 14.11 | $ 12.42 | $ 26.30 | $ 23.17 | $ 20.12 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .10 K | .10 | .14 | .31 | .25 | .25 |
Net realized and unrealized gain (loss) | 1.94 | 1.43 | 1.94 | (11.01) | 4.63 | 3.89 |
Total from investment operations | 2.04 | 1.53 | 2.08 | (10.70) | 4.88 | 4.14 |
Distributions from net investment income | (.16) | (.16) | (.39) | (.16) | (.18) | (.14) |
Distributions from net realized gain | (.03) | (.01) | - | (3.02) | (1.57) | (.95) |
Total distributions | (.20) J | (.17) | (.39) | (3.18) | (1.75) | (1.09) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 17.31 | $ 15.47 | $ 14.11 | $ 12.42 | $ 26.30 | $ 23.17 |
Total Return B, C, D | 13.30% | 10.88% | 17.84% | (46.04)% | 22.43% | 21.33% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.55% A | 1.55% | 1.58% | 1.49% | 1.47% | 1.48% |
Expenses net of fee waivers, if any | 1.55% A | 1.55% | 1.58% | 1.49% | 1.47% | 1.48% |
Expenses net of all reductions | 1.53% A | 1.53% | 1.55% | 1.44% | 1.43% | 1.42% |
Net investment income (loss) | 1.28% A,K | .71% | 1.19% | 1.57% | 1.04% | 1.12% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 580 | $ 621 | $ 832 | $ 1,110 | $ 3,569 | $ 3,609 |
Portfolio turnover rate G | 50% A | 59% | 92% | 88% | 105% | 83% |
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 $.20 per share is comprised of distributions from net investment income of $.164 and distributions from net realized gain of $.034 per share.
K Investment income per share reflects special dividend which amounted to $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .57%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 14.91 | $ 13.61 | $ 11.95 | $ 25.44 | $ 22.46 | $ 19.60 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .06 J | .02 | .08 | .18 | .10 | .10 |
Net realized and unrealized gain (loss) | 1.86 | 1.38 | 1.88 | (10.62) | 4.50 | 3.79 |
Total from investment operations | 1.92 | 1.40 | 1.96 | (10.44) | 4.60 | 3.89 |
Distributions from net investment income | (.10) | (.09) | (.30) | (.03) | (.05) | (.08) |
Distributions from net realized gain | (.03) | (.01) | - | (3.02) | (1.57) | (.95) |
Total distributions | (.13) | (.10) | (.30) | (3.05) | (1.62) | (1.03) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 16.70 | $ 14.91 | $ 13.61 | $ 11.95 | $ 25.44 | $ 22.46 |
Total Return B, C, D | 12.99% | 10.34% | 17.25% | (46.39)% | 21.73% | 20.55% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.08% A | 2.09% | 2.10% | 2.08% | 2.08% | 2.12% |
Expenses net of fee waivers, if any | 2.08% A | 2.09% | 2.10% | 2.08% | 2.08% | 2.12% |
Expenses net of all reductions | 2.06% A | 2.07% | 2.07% | 2.04% | 2.04% | 2.06% |
Net investment income (loss) | .75% A,J | .18% | .67% | .97% | .42% | .48% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 138 | $ 157 | $ 191 | $ 221 | $ 559 | $ 508 |
Portfolio turnover rate G | 50% A | 59% | 92% | 88% | 105% | 83% |
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 Investment income per share reflects special dividend which amounted to $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .04%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 14.95 | $ 13.65 | $ 11.98 | $ 25.50 | $ 22.53 | $ 19.65 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .06 J | .03 | .08 | .20 | .12 | .12 |
Net realized and unrealized gain (loss) | 1.87 | 1.38 | 1.89 | (10.64) | 4.50 | 3.79 |
Total from investment operations | 1.93 | 1.41 | 1.97 | (10.44) | 4.62 | 3.91 |
Distributions from net investment income | (.11) | (.10) | (.30) | (.06) | (.08) | (.08) |
Distributions from net realized gain | (.03) | (.01) | - | (3.02) | (1.57) | (.95) |
Total distributions | (.14) | (.11) | (.30) | (3.08) | (1.65) | (1.03) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 16.74 | $ 14.95 | $ 13.65 | $ 11.98 | $ 25.50 | $ 22.53 |
Total Return B, C, D | 13.01% | 10.32% | 17.24% | (46.33)% | 21.81% | 20.62% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.05% A | 2.06% | 2.09% | 2.01% | 2.00% | 2.02% |
Expenses net of fee waivers, if any | 2.05% A | 2.06% | 2.09% | 2.01% | 2.00% | 2.02% |
Expenses net of all reductions | 2.03% A | 2.04% | 2.06% | 1.97% | 1.96% | 1.96% |
Net investment income (loss) | .79% A,J | .21% | .68% | 1.04% | .51% | .57% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 412 | $ 419 | $ 502 | $ 618 | $ 1,673 | $ 1,395 |
Portfolio turnover rate G | 50% A | 59% | 92% | 88% | 105% | 83% |
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 Investment income per share reflects special dividend which amounted to $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .07%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 15.90 | $ 14.48 | $ 12.81 | $ 27.06 | $ 23.78 | $ 20.56 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .15 I | .19 | .21 | .41 | .38 | .37 |
Net realized and unrealized gain (loss) | 1.98 | 1.47 | 1.98 | (11.34) | 4.76 | 3.98 |
Total from investment operations | 2.13 | 1.66 | 2.19 | (10.93) | 5.14 | 4.35 |
Distributions from net investment income | (.25) | (.23) | (.52) | (.30) | (.29) | (.18) |
Distributions from net realized gain | (.03) | (.01) | - | (3.02) | (1.57) | (.95) |
Total distributions | (.28) | (.24) | (.52) | (3.32) | (1.86) | (1.13) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 17.75 | $ 15.90 | $ 14.48 | $ 12.81 | $ 27.06 | $ 23.78 |
Total Return B, C | 13.58% | 11.55% | 18.45% | (45.79)% | 23.07% | 21.96% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .99% A | .99% | 1.07% | .99% | .98% | .97% |
Expenses net of fee waivers, if any | .99% A | .99% | 1.07% | .99% | .98% | .97% |
Expenses net of all reductions | .97% A | .97% | 1.04% | .94% | .94% | .92% |
Net investment income (loss) | 1.85% A,I | 1.28% | 1.70% | 2.07% | 1.53% | 1.62% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 1,171 | $ 1,316 | $ 1,540 | $ 2,235 | $ 5,266 | $ 4,220 |
Portfolio turnover rate F | 50% A | 59% | 92% | 88% | 105% | 83% |
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 Investment income per share reflects special dividend which amounted to $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.13%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2011 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Advisor® Diversified International Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the
Semiannual Report
3. Significant Accounting Policies - continued
date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For master notes, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are 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, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 824,810 |
Gross unrealized depreciation | (102,847) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 721,963 |
Tax cost | $ 3,065,427 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update changes the wording used to describe the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. The update is effective during interim and annual periods beginning after December 15, 2011. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Semiannual Report
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $893,956 and $1,516,769, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .71% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 1,569 | $ 172 |
Class T | .25% | .25% | 1,484 | 25 |
Class B | .75% | .25% | 733 | 557 |
Class C | .75% | .25% | 2,044 | 201 |
| | | $ 5,830 | $ 955 |
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% to 1% for Class B, 1% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. 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 | $ 72 |
Class T | 21 |
Class B* | 117 |
Class C* | 7 |
| $ 217 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 1,756 | .28 |
Class T | 810 | .27 |
Class B | 222 | .30 |
Class C | 544 | .27 |
Institutional Class | 1,270 | .21 |
| $ 4,602 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $9 for the period.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The interest expense amounted to two hundred and forty-five dollars under the interfund borrowing program. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average Interest Rate |
Borrower | $ 12,547 | .35% |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $6 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
8. Security Lending - continued
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 $726 including eighty-eight dollars from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $363 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 $1.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
From net investment income | | |
Class A | $ 15,976 | $ 21,908 |
Class T | 6,296 | 9,175 |
Class B | 993 | 1,280 |
Class C | 2,886 | 3,424 |
Institutional Class | 19,246 | 23,986 |
Total | $ 45,397 | $ 59,773 |
From net realized gain | | |
Class A | $ 2,738 | $ 1,135 |
Class T | 1,311 | 581 |
Class B | 343 | 138 |
Class C | 927 | 360 |
Institutional Class | 2,707 | 1,038 |
Total | $ 8,026 | $ 3,252 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 | Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
Class A | | | | |
Shares sold | 5,069 | 11,857 | $ 82,332 | $ 171,401 |
Reinvestment of distributions | 1,034 | 1,361 | 16,424 | 20,356 |
Shares redeemed | (18,067) | (46,493) | (293,543) | (670,244) |
Net increase (decrease) | (11,964) | (33,275) | $ (194,787) | $ (478,487) |
Class T | | | | |
Shares sold | 1,685 | 5,521 | $ 27,091 | $ 79,294 |
Reinvestment of distributions | 447 | 636 | 7,039 | 9,432 |
Shares redeemed | (8,774) | (24,938) | (141,392) | (355,762) |
Net increase (decrease) | (6,642) | (18,781) | $ (107,262) | $ (267,036) |
Class B | | | | |
Shares sold | 43 | 579 | $ 659 | $ 8,025 |
Reinvestment of distributions | 75 | 88 | 1,145 | 1,270 |
Shares redeemed | (2,361) | (4,186) | (36,727) | (57,671) |
Net increase (decrease) | (2,243) | (3,519) | $ (34,923) | $ (48,376) |
Class C | | | | |
Shares sold | 815 | 1,779 | $ 12,777 | $ 24,719 |
Reinvestment of distributions | 191 | 201 | 2,917 | 2,898 |
Shares redeemed | (4,404) | (10,773) | (68,594) | (148,900) |
Net increase (decrease) | (3,398) | (8,793) | $ (52,900) | $ (121,283) |
Institutional Class | | | | |
Shares sold | 6,511 | 22,171 | $ 107,429 | $ 322,782 |
Reinvestment of distributions | 1,047 | 1,330 | 16,863 | 20,174 |
Shares redeemed | (24,333) | (47,045) | (401,199) | (687,069) |
Net increase (decrease) | (16,775) | (23,544) | $ (276,907) | $ (344,113) |
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 (U.K.) Ltd.
Fidelity Management & Research
Company (Hong Kong) Limited
Fidelity Management & Research
Company (Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
ADIF-USAN-0611
1.784871.108
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Diversified International
Fund - Institutional Class
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense Ratio | Beginning
Account Value
November 1, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010 to April 30, 2011 |
Class A | 1.31% | | | |
Actual | | $ 1,000.00 | $ 1,134.20 | $ 6.93 |
HypotheticalA | | $ 1,000.00 | $ 1,018.30 | $ 6.56 |
Class T | 1.55% | | | |
Actual | | $ 1,000.00 | $ 1,133.00 | $ 8.20 |
HypotheticalA | | $ 1,000.00 | $ 1,017.11 | $ 7.75 |
Class B | 2.08% | | | |
Actual | | $ 1,000.00 | $ 1,129.90 | $ 10.98 |
HypotheticalA | | $ 1,000.00 | $ 1,014.48 | $ 10.39 |
Class C | 2.05% | | | |
Actual | | $ 1,000.00 | $ 1,130.10 | $ 10.83 |
HypotheticalA | | $ 1,000.00 | $ 1,014.63 | $ 10.24 |
Institutional Class | .99% | | | |
Actual | | $ 1,000.00 | $ 1,135.80 | $ 5.24 |
HypotheticalA | | $ 1,000.00 | $ 1,019.89 | $ 4.96 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Royal Dutch Shell PLC Class B (United Kingdom, Oil, Gas & Consumable Fuels) | 3.4 | 2.9 |
BHP Billiton Ltd. sponsored ADR (Australia, Metals & Mining) | 2.0 | 1.7 |
Novo Nordisk A/S Series B (Denmark, Pharmaceuticals) | 1.8 | 1.4 |
SOFTBANK CORP. (Japan, Wireless Telecommunication Services) | 1.6 | 1.0 |
HTC Corp. (Taiwan, Communications Equipment) | 1.6 | 0.9 |
| 10.4 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 20.6 | 20.9 |
Consumer Discretionary | 16.1 | 15.6 |
Energy | 11.6 | 11.4 |
Industrials | 10.5 | 8.1 |
Materials | 10.5 | 10.2 |
Top Five Countries as of April 30, 2011 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 17.0 | 18.0 |
Japan | 13.8 | 11.9 |
Germany | 7.9 | 7.6 |
France | 6.0 | 6.9 |
United States of America | 5.5 | 7.6 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011 | As of October 31, 2010 |
| Stocks 99.5% | | | Stocks 97.7% | |
| Other Investments 0.0%* | | | Other Investments 0.0% | |
| Short-Term
Investments and
Net Other Assets 0.5% | | | Short-Term
Investments and
Net Other Assets 2.3% | |
* Amount represents less than 0.1%.
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.9% |
| Shares | | Value (000s) |
Argentina - 0.0% |
Banco Macro SA sponsored ADR | 29,792 | | $ 1,102 |
Australia - 3.8% |
AMP Ltd. | 1,680,003 | | 10,095 |
BHP Billiton Ltd. sponsored ADR (d) | 697,400 | | 70,605 |
CSL Ltd. | 203,585 | | 7,668 |
Newcrest Mining Ltd. | 708,686 | | 32,210 |
QBE Insurance Group Ltd. | 460,000 | | 9,437 |
Westfield Group unit | 550,000 | | 5,440 |
TOTAL AUSTRALIA | | 135,455 |
Bailiwick of Guernsey - 0.9% |
Ashmore Global Opps Ltd. | 130,000 | | 1,047 |
Resolution Ltd. | 6,240,582 | | 31,554 |
TOTAL BAILIWICK OF GUERNSEY | | 32,601 |
Bailiwick of Jersey - 1.7% |
Experian PLC | 1,565,200 | | 21,086 |
Randgold Resources Ltd. sponsored ADR | 90,400 | | 7,826 |
United Business Media Ltd. | 1,112,300 | | 11,222 |
WPP PLC | 1,479,369 | | 19,378 |
TOTAL BAILIWICK OF JERSEY | | 59,512 |
Belgium - 0.9% |
Ageas (d) | 1,129,057 | | 3,427 |
Anheuser-Busch InBev SA NV (d) | 439,345 | | 28,039 |
TOTAL BELGIUM | | 31,466 |
Bermuda - 1.5% |
Assured Guaranty Ltd. | 434,900 | | 7,393 |
Clear Media Ltd. (a) | 13,774,000 | | 8,424 |
CNPC (Hong Kong) Ltd. | 1,156,000 | | 2,048 |
Huabao International Holdings Ltd. | 8,566,000 | | 12,706 |
Li & Fung Ltd. | 2,934,000 | | 14,998 |
Noble Group Ltd. | 3,219,000 | | 5,864 |
TOTAL BERMUDA | | 51,433 |
Brazil - 2.3% |
Anhanguera Educacional Participacoes SA | 112,100 | | 2,494 |
Banco Bradesco SA (PN) sponsored ADR | 475,000 | | 9,609 |
Banco Santander (Brasil) SA ADR | 590,000 | | 6,850 |
BM&F Bovespa SA | 962,100 | | 7,222 |
Droga Raia SA | 41,000 | | 631 |
Drogasil SA | 779,400 | | 5,598 |
Common Stocks - continued |
| Shares | | Value (000s) |
Brazil - continued |
Estacio Participacoes SA | 210,300 | | $ 3,074 |
Itau Unibanco Banco Multiplo SA sponsored ADR | 604,300 | | 14,352 |
Mills Estruturas e Servicos de Engenharia SA | 191,000 | | 2,610 |
Petroleo Brasileiro SA - Petrobras (ON) sponsored ADR | 87,200 | | 3,255 |
Souza Cruz Industria Comerico | 500,000 | | 5,622 |
T4F Entretenimento SA | 212,800 | | 2,029 |
TIM Participacoes SA sponsored ADR (non-vtg.) | 140,900 | | 6,648 |
Usinas Siderurgicas de Minas Gerais SA - Usiminas (PN-A) (non-vtg.) | 8,400 | | 86 |
Vivo Participacoes SA sponsored ADR | 197,700 | | 8,266 |
Weg SA | 136,900 | | 1,714 |
TOTAL BRAZIL | | 80,060 |
British Virgin Islands - 0.2% |
Arcos Dorados Holdings, Inc. | 177,300 | | 3,906 |
Camelot Information Systems, Inc. ADR | 225,500 | | 4,352 |
TOTAL BRITISH VIRGIN ISLANDS | | 8,258 |
Canada - 5.0% |
Barrick Gold Corp. | 95,000 | | 4,852 |
Canadian Natural Resources Ltd. | 441,100 | | 20,752 |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 18,000 | | 7,270 |
Goldcorp, Inc. | 190,200 | | 10,633 |
InterOil Corp. (a)(d) | 102,500 | | 6,519 |
Ivanhoe Mines Ltd. (a) | 445,960 | | 11,695 |
Niko Resources Ltd. | 227,100 | | 19,191 |
Open Text Corp. (a) | 162,200 | | 9,937 |
Osisko Mining Corp. (a) | 400,000 | | 5,856 |
Painted Pony Petroleum Ltd. (a)(e) | 170,900 | | 1,799 |
Painted Pony Petroleum Ltd. Class A (a) | 900,000 | | 9,475 |
Petrobank Energy & Resources Ltd. | 576,300 | | 12,195 |
Petrominerales Ltd. | 325,914 | | 12,474 |
Suncor Energy, Inc. | 303,400 | | 13,985 |
Talisman Energy, Inc. | 821,200 | | 19,833 |
Tourmaline Oil Corp. (a) | 125,000 | | 3,570 |
Tourmaline Oil Corp. (a)(e) | 65,800 | | 1,879 |
Uranium One, Inc. | 1,419,700 | | 5,912 |
TOTAL CANADA | | 177,827 |
Cayman Islands - 1.0% |
China Automation Group Ltd. | 1,740,000 | | 1,524 |
China ZhengTong Auto Services Holdings Ltd. | 2,608,000 | | 2,952 |
Geely Automobile Holdings Ltd. | 4,710,000 | | 1,886 |
Common Stocks - continued |
| Shares | | Value (000s) |
Cayman Islands - continued |
Hengan International Group Co. Ltd. | 992,500 | | $ 7,744 |
Hengdeli Holdings Ltd. | 7,320,000 | | 4,383 |
hiSoft Technology International Ltd. ADR (a) | 178,100 | | 3,323 |
Kingdee International Software Group Co. Ltd. | 8,020,800 | | 5,143 |
Longtop Financial Technologies Ltd. ADR (a) | 28,000 | | 632 |
Minth Group Ltd. | 816,000 | | 1,255 |
Shenguan Holdings Group Ltd. | 446,000 | | 593 |
Silver Base Group Holdings Ltd. | 2,922,000 | | 2,404 |
Want Want China Holdings Ltd. | 4,036,000 | | 3,622 |
TOTAL CAYMAN ISLANDS | | 35,461 |
China - 2.6% |
Agricultural Bank China Ltd. (H Shares) | 29,289,000 | | 17,310 |
Baidu.com, Inc. sponsored ADR (a) | 141,600 | | 21,030 |
Bank of China Ltd. (H Shares) | 16,178,000 | | 8,937 |
Changsha Zoomlion Heavy Industry Science & Technology Development Co. Ltd. (H Shares) | 2,098,800 | | 5,567 |
China Construction Bank Corp. (H Shares) | 12,208,000 | | 11,538 |
China Merchants Bank Co. Ltd. (H Shares) | 8,394,000 | | 21,616 |
Shandong Weigao Group Medical Polymer Co. Ltd. (H Shares) | 1,532,000 | | 4,202 |
TOTAL CHINA | | 90,200 |
Denmark - 3.1% |
Carlsberg A/S Series B | 198,500 | | 23,576 |
Novo Nordisk A/S Series B | 501,308 | | 63,465 |
Pandora A/S | 62,400 | | 2,811 |
William Demant Holding A/S (a) | 200,000 | | 18,646 |
TOTAL DENMARK | | 108,498 |
Finland - 0.1% |
Nokian Tyres PLC | 46,300 | | 2,400 |
France - 6.0% |
Alstom SA | 304,999 | | 20,282 |
AXA SA (d) | 644,500 | | 14,463 |
BNP Paribas SA | 252,100 | | 19,951 |
Danone | 110,800 | | 8,116 |
Essilor International SA | 185,589 | | 15,537 |
Iliad Group SA | 63,296 | | 8,137 |
L'Oreal SA | 45,400 | | 5,757 |
LVMH Moet Hennessy - Louis Vuitton | 191,793 | | 34,445 |
PPR SA | 211,900 | | 37,899 |
Publicis Groupe SA | 125,000 | | 7,084 |
Common Stocks - continued |
| Shares | | Value (000s) |
France - continued |
Safran SA (d) | 49,300 | | $ 1,913 |
Schneider Electric SA (d) | 74,191 | | 13,110 |
Societe Generale Series A | 195,000 | | 13,044 |
VINCI SA | 187,900 | | 12,552 |
TOTAL FRANCE | | 212,290 |
Germany - 6.3% |
adidas AG | 140,800 | | 10,482 |
BASF AG (d) | 225,853 | | 23,217 |
Bayerische Motoren Werke AG (BMW) | 199,468 | | 18,811 |
Commerzbank AG (a) | 340,000 | | 2,120 |
Deutsche Boerse AG | 130,300 | | 10,827 |
ElringKlinger AG | 81,300 | | 2,852 |
Fresenius Medical Care AG & Co. KGaA | 304,800 | | 23,955 |
Fresenius SE | 224,400 | | 23,553 |
HeidelbergCement AG (d) | 152,400 | | 11,655 |
Kabel Deutschland Holding AG (a) | 68,400 | | 4,275 |
Linde AG | 145,177 | | 26,148 |
MTU Aero Engines Holdings AG (d) | 52,600 | | 4,032 |
Rheinmetall AG | 57,200 | | 5,131 |
SAP AG | 156,700 | | 10,097 |
Siemens AG | 315,275 | | 45,867 |
TOTAL GERMANY | | 223,022 |
Hong Kong - 0.9% |
AIA Group Ltd. | 2,016,600 | | 6,790 |
Henderson Land Development Co. Ltd. | 998,325 | | 6,832 |
Henderson Land Development Co. Ltd. warrants 6/1/11 (a) | 259,200 | | 7 |
Swire Pacific Ltd. (A Shares) | 537,000 | | 8,201 |
Wharf Holdings Ltd. | 1,546,000 | | 11,307 |
TOTAL HONG KONG | | 33,137 |
India - 1.7% |
Axis Bank Ltd. | 154,359 | | 4,488 |
Bajaj Auto Ltd. | 62,612 | | 2,085 |
Bharti Airtel Ltd. | 435,258 | | 3,738 |
GEI Industrial Systems Ltd. | 100,000 | | 474 |
HDFC Bank Ltd. | 268,446 | | 13,925 |
Housing Development Finance Corp. Ltd. | 665,418 | | 10,627 |
Infrastructure Development Finance Co. Ltd. | 1,296,940 | | 4,258 |
ITC Ltd. | 462,016 | | 2,008 |
Mahindra & Mahindra Financial Services Ltd. | 231,785 | | 3,833 |
Punjab National Bank | 4,373 | | 125 |
Common Stocks - continued |
| Shares | | Value (000s) |
India - continued |
Shriram Transport Finance Co. Ltd. | 243,922 | | $ 4,271 |
State Bank of India | 173,282 | | 10,982 |
TOTAL INDIA | | 60,814 |
Indonesia - 0.1% |
PT Tower Bersama Infrastructure Tbk | 11,851,500 | | 3,356 |
Italy - 2.4% |
ENI SpA | 281,100 | | 7,526 |
Fiat Industrial SpA (a) | 2,319,100 | | 34,454 |
Fiat SpA | 1,008,000 | | 10,757 |
Intesa Sanpaolo SpA | 1,082,355 | | 3,594 |
Saipem SpA | 512,029 | | 29,070 |
TOTAL ITALY | | 85,401 |
Japan - 13.8% |
ABC-Mart, Inc. | 32,400 | | 1,214 |
Aozora Bank Ltd. | 691,000 | | 1,497 |
Canon, Inc. | 360,800 | | 16,989 |
Chiyoda Corp. | 400,000 | | 3,981 |
Cosmos Pharmaceutical Corp. | 113,600 | | 5,032 |
Denso Corp. | 494,100 | | 16,534 |
Dentsu, Inc. | 175,000 | | 4,654 |
eAccess Ltd. | 5,995 | | 2,830 |
Elpida Memory, Inc. (a)(d) | 987,200 | | 14,790 |
Fanuc Ltd. | 90,700 | | 15,181 |
Fast Retailing Co. Ltd. | 15,600 | | 2,459 |
Hitachi Ltd. | 2,657,000 | | 14,420 |
Honda Motor Co. Ltd. sponsored ADR (d) | 575,806 | | 22,082 |
Itochu Corp. | 653,000 | | 6,802 |
Japan Tobacco, Inc. | 5,504 | | 21,388 |
JSR Corp. | 489,300 | | 10,293 |
KDDI Corp. | 1,961 | | 13,090 |
Keyence Corp. | 73,000 | | 19,288 |
Komatsu Ltd. | 814,100 | | 28,701 |
Makita Corp. | 75,600 | | 3,476 |
Mazda Motor Corp. | 1,428,000 | | 3,279 |
Mitsubishi Corp. | 560,100 | | 15,192 |
Mitsubishi Electric Corp. | 151,000 | | 1,681 |
Mitsubishi UFJ Financial Group, Inc. | 2,539,000 | | 12,185 |
Mitsui & Co. Ltd. | 800,700 | | 14,247 |
Nintendo Co. Ltd. | 37,600 | | 8,896 |
Nitori Holdings Co. Ltd. | 48,900 | | 4,228 |
Common Stocks - continued |
| Shares | | Value (000s) |
Japan - continued |
NSK Ltd. | 764,000 | | $ 6,779 |
NTT DoCoMo, Inc. | 6,662 | | 12,359 |
ORIX Corp. | 418,140 | | 41,075 |
Rakuten, Inc. | 21,032 | | 19,527 |
ROHM Co. Ltd. | 53,200 | | 3,204 |
Shimadzu Corp. | 389,000 | | 3,379 |
Shinsei Bank Ltd. (a) | 634,000 | | 762 |
SOFTBANK CORP. | 1,344,500 | | 56,727 |
Start Today Co. Ltd. | 779,800 | | 13,631 |
Sumitomo Corp. | 335,100 | | 4,622 |
Sumitomo Mitsui Financial Group, Inc. | 297,200 | | 9,230 |
TDK Corp. | 59,300 | | 3,059 |
Tokyo Electron Ltd. | 262,100 | | 15,172 |
Yahoo! Japan Corp. | 45,226 | | 16,634 |
TOTAL JAPAN | | 490,569 |
Korea (South) - 1.5% |
Amorepacific Corp. | 10,834 | | 10,951 |
Orion Corp. | 24,271 | | 9,438 |
Samsung Electronics Co. Ltd. | 26,967 | | 22,538 |
Shinhan Financial Group Co. Ltd. | 235,400 | | 11,566 |
TOTAL KOREA (SOUTH) | | 54,493 |
Luxembourg - 0.1% |
Ternium SA sponsored ADR | 141,900 | | 4,771 |
Malaysia - 0.4% |
Genting Bhd | 1,882,300 | | 7,370 |
Hong Leong Bank Bhd | 1,666,400 | | 5,850 |
TOTAL MALAYSIA | | 13,220 |
Mexico - 0.8% |
America Movil SAB de CV Series L sponsored ADR | 221,800 | | 12,687 |
Grupo Televisa SA de CV (CPO) sponsored ADR (a) | 230,100 | | 5,458 |
Wal-Mart de Mexico SA de CV Series V | 3,662,600 | | 11,474 |
TOTAL MEXICO | | 29,619 |
Netherlands - 2.5% |
AEGON NV (a) | 2,555,700 | | 20,314 |
Gemalto NV | 190,000 | | 9,739 |
ING Groep NV sponsored ADR (a) | 1,858,100 | | 24,508 |
Koninklijke KPN NV | 735,818 | | 11,678 |
Common Stocks - continued |
| Shares | | Value (000s) |
Netherlands - continued |
Koninklijke Philips Electronics NV unit | 590,000 | | $ 17,399 |
LyondellBasell Industries NV Class A | 145,800 | | 6,488 |
TOTAL NETHERLANDS | | 90,126 |
Netherlands Antilles - 0.5% |
Schlumberger Ltd. | 210,600 | | 18,901 |
Norway - 1.3% |
DnB NOR ASA (d) | 1,191,200 | | 19,368 |
Storebrand ASA (A Shares) (d) | 600,000 | | 6,233 |
Telenor ASA | 1,156,800 | | 19,988 |
TOTAL NORWAY | | 45,589 |
Poland - 0.2% |
Eurocash SA | 416,300 | | 5,097 |
Qatar - 0.1% |
Commercial Bank of Qatar GDR (Reg. S) | 1,100,000 | | 4,422 |
Russia - 0.8% |
OAO Gazprom sponsored ADR | 868,600 | | 14,818 |
Sberbank (Savings Bank of the Russian Federation) GDR | 12,800 | | 5,105 |
Uralkali JSC GDR (Reg. S) | 219,300 | | 9,204 |
TOTAL RUSSIA | | 29,127 |
South Africa - 1.3% |
AngloGold Ashanti Ltd. sponsored ADR | 216,400 | | 11,032 |
Foschini Ltd. | 95,000 | | 1,310 |
Impala Platinum Holdings Ltd. | 132,500 | | 4,136 |
Mr Price Group Ltd. | 825,300 | | 8,443 |
Naspers Ltd. Class N | 212,100 | | 12,754 |
Shoprite Holdings Ltd. | 265,100 | | 4,177 |
Vodacom Group (Pty) Ltd. | 371,100 | | 4,537 |
TOTAL SOUTH AFRICA | | 46,389 |
Spain - 3.4% |
Banco Santander SA sponsored ADR | 3,974,000 | | 49,278 |
Gestevision Telecinco SA | 554,200 | | 6,228 |
Inditex SA | 335,571 | | 30,091 |
Prosegur Compania de Seguridad SA (Reg.) | 185,900 | | 11,358 |
Red Electrica Corporacion SA | 109,300 | | 6,974 |
Telefonica SA sponsored ADR | 631,700 | | 17,031 |
TOTAL SPAIN | | 120,960 |
Common Stocks - continued |
| Shares | | Value (000s) |
Sweden - 1.5% |
Elekta AB (B Shares) | 347,100 | | $ 15,817 |
H&M Hennes & Mauritz AB (B Shares) (d) | 561,086 | | 19,822 |
Sandvik AB (d) | 105,800 | | 2,244 |
Swedbank AB (A Shares) | 841,700 | | 15,961 |
TOTAL SWEDEN | | 53,844 |
Switzerland - 4.9% |
Clariant AG (Reg.) (a) | 623,315 | | 12,932 |
Kuehne & Nagel International AG | 166,380 | | 26,578 |
Nestle SA | 586,380 | | 36,397 |
Noble Corp. | 125,000 | | 5,376 |
The Swatch Group AG (Bearer) | 13,730 | | 6,753 |
Transocean Ltd. (a) | 220,000 | | 16,005 |
UBS AG (a) | 1,574,250 | | 31,499 |
Zurich Financial Services AG | 135,747 | | 38,128 |
TOTAL SWITZERLAND | | 173,668 |
Taiwan - 1.8% |
HTC Corp. | 1,245,000 | | 56,423 |
Taiwan Fertilizer Co. Ltd. | 2,327,000 | | 7,836 |
TOTAL TAIWAN | | 64,259 |
United Kingdom - 17.0% |
Anglo American PLC (United Kingdom) | 395,500 | | 20,615 |
Aviva PLC | 528,700 | | 3,957 |
Barclays PLC | 347,612 | | 1,653 |
BG Group PLC | 1,061,746 | | 27,197 |
BHP Billiton PLC | 453,184 | | 19,161 |
BP PLC sponsored ADR | 761,300 | | 35,126 |
British Land Co. PLC | 430,000 | | 4,313 |
Britvic PLC | 775,300 | | 5,303 |
Burberry Group PLC | 642,800 | | 13,905 |
Capita Group PLC | 805,500 | | 9,903 |
Carphone Warehouse Group PLC (a) | 1,801,600 | | 11,970 |
GlaxoSmithKline PLC | 1,865,800 | | 40,760 |
HSBC Holdings PLC sponsored ADR (d) | 864,900 | | 47,111 |
Inchcape PLC | 1,823,400 | | 11,099 |
Intertek Group PLC | 358,900 | | 12,740 |
ITV PLC (a) | 6,134,500 | | 7,793 |
Johnson Matthey PLC | 199,600 | | 6,678 |
Lloyds Banking Group PLC (a) | 32,740,500 | | 32,508 |
Misys PLC | 1,534,750 | | 8,091 |
Next PLC | 293,000 | | 10,948 |
Common Stocks - continued |
| Shares | | Value (000s) |
United Kingdom - continued |
Ocado Group PLC (a)(d) | 1,074,000 | | $ 4,062 |
Pearson PLC | 1,035,800 | | 19,853 |
QinetiQ Group PLC (a) | 1,700,000 | | 3,433 |
Reckitt Benckiser Group PLC | 797,300 | | 44,269 |
Rio Tinto PLC | 343,300 | | 25,050 |
Rolls-Royce Group PLC | 518,000 | | 5,551 |
Rolls-Royce Group PLC (C Shares) (a) | 49,728,000 | | 83 |
Royal Dutch Shell PLC Class B | 3,115,025 | | 121,193 |
SuperGroup PLC (a) | 155,800 | | 4,128 |
Vodafone Group PLC sponsored ADR | 1,492,600 | | 43,465 |
TOTAL UNITED KINGDOM | | 601,918 |
United States of America - 5.5% |
Agilent Technologies, Inc. (a) | 78,200 | | 3,903 |
Alliance Data Systems Corp. (a) | 62,900 | | 5,976 |
Apple, Inc. (a) | 71,400 | | 24,864 |
C. R. Bard, Inc. | 91,800 | | 9,800 |
Citigroup, Inc. (a) | 2,362,800 | | 10,845 |
Cognizant Technology Solutions Corp. Class A (a) | 47,200 | | 3,913 |
eBay, Inc. (a) | 220,200 | | 7,575 |
Facebook, Inc. Class B (a)(f) | 131,847 | | 3,296 |
Google, Inc. Class A (a) | 19,500 | | 10,610 |
Hasbro, Inc. | 16,100 | | 754 |
Jacobs Engineering Group, Inc. (a) | 129,900 | | 6,444 |
JPMorgan Chase & Co. | 201,200 | | 9,181 |
Kulicke & Soffa Industries, Inc. (a) | 914,200 | | 8,283 |
Medco Health Solutions, Inc. (a) | 222,300 | | 13,189 |
MEMC Electronic Materials, Inc. (a) | 129,000 | | 1,526 |
Newmont Mining Corp. | 125,000 | | 7,326 |
Resolute Energy Corp. (a) | 303,800 | | 5,374 |
SanDisk Corp. (a) | 144,300 | | 7,091 |
Schweitzer-Mauduit International, Inc. | 179,900 | | 9,326 |
The Pep Boys - Manny, Moe & Jack | 101,100 | | 1,385 |
The Walt Disney Co. | 164,500 | | 7,090 |
Unisys Corp. (a) | 239,998 | | 7,123 |
Virgin Media, Inc. | 647,900 | | 19,605 |
Wells Fargo & Co. | 323,800 | | 9,426 |
TOTAL UNITED STATES OF AMERICA | | 193,905 |
TOTAL COMMON STOCKS (Cost $2,752,759) | 3,473,170 |
Nonconvertible Preferred Stocks - 1.6% |
| Shares | | Value (000s) |
Germany - 1.6% |
ProSiebenSat.1 Media AG | 447,900 | | $ 12,827 |
Volkswagen AG (d) | 220,100 | | 43,360 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $28,448) | 56,187 |
Master Notes - 0.0% |
| Principal Amount (000s) | | |
Canada - 0.0% |
OZ Optics Ltd. 5% 11/5/14 (f)
(Cost $20) | | $ 19 | | 19 |
Money Market Funds - 7.2% |
| Shares | | |
Fidelity Cash Central Fund, 0.13% (b) | 16,759,726 | | 16,760 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 241,254,250 | | 241,254 |
TOTAL MONEY MARKET FUNDS (Cost $258,014) | 258,014 |
TOTAL INVESTMENT PORTFOLIO - 106.7% (Cost $3,039,241) | | 3,787,390 |
NET OTHER ASSETS (LIABILITIES) - (6.7)% | | (239,114) |
NET ASSETS - 100% | $ 3,548,276 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $3,678,000 or 0.1% of net assets. |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $3,315,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Facebook, Inc. Class B | 3/31/11 | $ 3,296 |
OZ Optics Ltd. 5% 11/5/14 | 11/5/10 | $ 20 |
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 | $ 50 |
Fidelity Securities Lending Cash Central Fund | 726 |
Total | $ 776 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
United Kingdom | $ 601,918 | $ 337,783 | $ 264,135 | $ - |
Japan | 490,569 | 22,082 | 468,487 | - |
Germany | 279,209 | 279,209 | - | - |
France | 212,290 | 212,290 | - | - |
United States of America | 193,905 | 190,609 | - | 3,296 |
Canada | 177,827 | 177,827 | - | - |
Switzerland | 173,668 | 142,169 | 31,499 | - |
Australia | 135,455 | 135,455 | - | - |
Spain | 120,960 | 120,960 | - | - |
Other | 1,143,556 | 984,934 | 158,622 | - |
Master Notes | 19 | - | - | 19 |
Money Market Funds | 258,014 | 258,014 | - | - |
Total Investments in Securities: | $ 3,787,390 | $ 2,861,332 | $ 922,743 | $ 3,315 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities:
(Amounts in thousands) | |
Beginning Balance | $ 24 |
Total Realized Gain (Loss) | (56) |
Total Unrealized Gain (Loss) | 55 |
Cost of Purchases | 3,321 |
Proceeds of Sales | (29) |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 3,315 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at April 30, 2011 | $ 0 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $3,277,388,000 of which $9,101,000 and $3,268,287,000 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
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, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $230,069) - See accompanying schedule: Unaffiliated issuers (cost $2,781,227) | $ 3,529,376 | |
Fidelity Central Funds (cost $258,014) | 258,014 | |
Total Investments (cost $3,039,241) | | $ 3,787,390 |
Foreign currency held at value (cost $200) | | 202 |
Receivable for investments sold | | 358 |
Receivable for fund shares sold | | 2,403 |
Dividends receivable | | 17,019 |
Distributions receivable from Fidelity Central Funds | | 234 |
Prepaid expenses | | 4 |
Other receivables | | 362 |
Total assets | | 3,807,972 |
| | |
Liabilities | | |
Payable for investments purchased | $ 1,773 | |
Payable for fund shares redeemed | 10,239 | |
Accrued management fee | 2,057 | |
Distribution and service plan fees payable | 939 | |
Other affiliated payables | 853 | |
Other payables and accrued expenses | 2,581 | |
Collateral on securities loaned, at value | 241,254 | |
Total liabilities | | 259,696 |
| | |
Net Assets | | $ 3,548,276 |
Net Assets consist of: | | |
Paid in capital | | $ 5,861,850 |
Undistributed net investment income | | 13,572 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (3,073,434) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 746,288 |
Net Assets | | $ 3,548,276 |
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, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($1,246,429 ÷ 71,351 shares) | | $ 17.47 |
| | |
Maximum offering price per share (100/94.25 of $17.47) | | $ 18.54 |
Class T:
Net Asset Value and redemption price per share ($580,277 ÷ 33,520 shares) | | $ 17.31 |
| | |
Maximum offering price per share (100/96.50 of $17.31) | | $ 17.94 |
Class B:
Net Asset Value and offering price per share ($138,343 ÷ 8,286 shares)A | | $ 16.70 |
| | |
Class C:
Net Asset Value and offering price per share ($411,890 ÷ 24,599 shares)A | | $ 16.74 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,171,337 ÷ 65,991 shares) | | $ 17.75 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 39,953 |
Special dividends | | 12,968 |
Interest | | 1 |
Income from Fidelity Central Funds | | 776 |
Income before foreign taxes withheld | | 53,698 |
Less foreign taxes withheld | | (2,674) |
Total income | | 51,024 |
| | |
Expenses | | |
Management fee | $ 12,811 | |
Transfer agent fees | 4,602 | |
Distribution and service plan fees | 5,830 | |
Accounting and security lending fees | 760 | |
Custodian fees and expenses | 335 | |
Independent trustees' compensation | 9 | |
Registration fees | 111 | |
Audit | 66 | |
Legal | 7 | |
Miscellaneous | 20 | |
Total expenses before reductions | 24,551 | |
Expense reductions | (364) | 24,187 |
Net investment income (loss) | | 26,837 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 236,571 | |
Foreign currency transactions | (266) | |
Total net realized gain (loss) | | 236,305 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $228) | 190,125 | |
Assets and liabilities in foreign currencies | 218 | |
Total change in net unrealized appreciation (depreciation) | | 190,343 |
Net gain (loss) | | 426,648 |
Net increase (decrease) in net assets resulting from operations | | $ 453,485 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 26,837 | $ 38,199 |
Net realized gain (loss) | 236,305 | 465,302 |
Change in net unrealized appreciation (depreciation) | 190,343 | (92,787) |
Net increase (decrease) in net assets resulting
from operations | 453,485 | 410,714 |
Distributions to shareholders from net investment income | (45,397) | (59,773) |
Distributions to shareholders from net realized gain | (8,026) | (3,252) |
Total distributions | (53,423) | (63,025) |
Share transactions - net increase (decrease) | (666,779) | (1,259,295) |
Redemption fees | 32 | 104 |
Total increase (decrease) in net assets | (266,685) | (911,502) |
| | |
Net Assets | | |
Beginning of period | 3,814,961 | 4,726,463 |
End of period (including undistributed net investment income of $13,572 and undistributed net investment income of $32,132, respectively) | $ 3,548,276 | $ 3,814,961 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 15.63 | $ 14.25 | $ 12.57 | $ 26.62 | $ 23.42 | $ 20.30 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .12 J | .14 | .17 | .36 | .31 | .30 |
Net realized and unrealized gain (loss) | 1.95 | 1.44 | 1.96 | (11.15) | 4.69 | 3.91 |
Total from investment operations | 2.07 | 1.58 | 2.13 | (10.79) | 5.00 | 4.21 |
Distributions from net investment income | (.20) | (.19) | (.45) | (.24) | (.23) | (.14) |
Distributions from net realized gain | (.03) | (.01) | - | (3.02) | (1.57) | (.95) |
Total distributions | (.23) | (.20) | (.45) | (3.26) | (1.80) | (1.09) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 17.47 | $ 15.63 | $ 14.25 | $ 12.57 | $ 26.62 | $ 23.42 |
Total Return B, C, D | 13.42% | 11.17% | 18.16% | (45.95)% | 22.76% | 21.54% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.31% A | 1.32% | 1.34% | 1.26% | 1.25% | 1.26% |
Expenses net of fee waivers, if any | 1.31% A | 1.32% | 1.34% | 1.26% | 1.25% | 1.26% |
Expenses net of all reductions | 1.29% A | 1.30% | 1.31% | 1.22% | 1.21% | 1.20% |
Net investment income (loss) | 1.53% A,J | .95% | 1.43% | 1.80% | 1.26% | 1.33% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 1,246 | $ 1,302 | $ 1,662 | $ 2,004 | $ 5,774 | $ 4,694 |
Portfolio turnover rate G | 50% A | 59% | 92% | 88% | 105% | 83% |
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 Investment income per share reflects special dividend which amounted to $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .81%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 15.47 | $ 14.11 | $ 12.42 | $ 26.30 | $ 23.17 | $ 20.12 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .10 K | .10 | .14 | .31 | .25 | .25 |
Net realized and unrealized gain (loss) | 1.94 | 1.43 | 1.94 | (11.01) | 4.63 | 3.89 |
Total from investment operations | 2.04 | 1.53 | 2.08 | (10.70) | 4.88 | 4.14 |
Distributions from net investment income | (.16) | (.16) | (.39) | (.16) | (.18) | (.14) |
Distributions from net realized gain | (.03) | (.01) | - | (3.02) | (1.57) | (.95) |
Total distributions | (.20) J | (.17) | (.39) | (3.18) | (1.75) | (1.09) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 17.31 | $ 15.47 | $ 14.11 | $ 12.42 | $ 26.30 | $ 23.17 |
Total Return B, C, D | 13.30% | 10.88% | 17.84% | (46.04)% | 22.43% | 21.33% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.55% A | 1.55% | 1.58% | 1.49% | 1.47% | 1.48% |
Expenses net of fee waivers, if any | 1.55% A | 1.55% | 1.58% | 1.49% | 1.47% | 1.48% |
Expenses net of all reductions | 1.53% A | 1.53% | 1.55% | 1.44% | 1.43% | 1.42% |
Net investment income (loss) | 1.28% A,K | .71% | 1.19% | 1.57% | 1.04% | 1.12% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 580 | $ 621 | $ 832 | $ 1,110 | $ 3,569 | $ 3,609 |
Portfolio turnover rate G | 50% A | 59% | 92% | 88% | 105% | 83% |
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 $.20 per share is comprised of distributions from net investment income of $.164 and distributions from net realized gain of $.034 per share.
K Investment income per share reflects special dividend which amounted to $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .57%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 14.91 | $ 13.61 | $ 11.95 | $ 25.44 | $ 22.46 | $ 19.60 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .06 J | .02 | .08 | .18 | .10 | .10 |
Net realized and unrealized gain (loss) | 1.86 | 1.38 | 1.88 | (10.62) | 4.50 | 3.79 |
Total from investment operations | 1.92 | 1.40 | 1.96 | (10.44) | 4.60 | 3.89 |
Distributions from net investment income | (.10) | (.09) | (.30) | (.03) | (.05) | (.08) |
Distributions from net realized gain | (.03) | (.01) | - | (3.02) | (1.57) | (.95) |
Total distributions | (.13) | (.10) | (.30) | (3.05) | (1.62) | (1.03) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 16.70 | $ 14.91 | $ 13.61 | $ 11.95 | $ 25.44 | $ 22.46 |
Total Return B, C, D | 12.99% | 10.34% | 17.25% | (46.39)% | 21.73% | 20.55% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.08% A | 2.09% | 2.10% | 2.08% | 2.08% | 2.12% |
Expenses net of fee waivers, if any | 2.08% A | 2.09% | 2.10% | 2.08% | 2.08% | 2.12% |
Expenses net of all reductions | 2.06% A | 2.07% | 2.07% | 2.04% | 2.04% | 2.06% |
Net investment income (loss) | .75% A,J | .18% | .67% | .97% | .42% | .48% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 138 | $ 157 | $ 191 | $ 221 | $ 559 | $ 508 |
Portfolio turnover rate G | 50% A | 59% | 92% | 88% | 105% | 83% |
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 Investment income per share reflects special dividend which amounted to $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .04%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 14.95 | $ 13.65 | $ 11.98 | $ 25.50 | $ 22.53 | $ 19.65 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .06 J | .03 | .08 | .20 | .12 | .12 |
Net realized and unrealized gain (loss) | 1.87 | 1.38 | 1.89 | (10.64) | 4.50 | 3.79 |
Total from investment operations | 1.93 | 1.41 | 1.97 | (10.44) | 4.62 | 3.91 |
Distributions from net investment income | (.11) | (.10) | (.30) | (.06) | (.08) | (.08) |
Distributions from net realized gain | (.03) | (.01) | - | (3.02) | (1.57) | (.95) |
Total distributions | (.14) | (.11) | (.30) | (3.08) | (1.65) | (1.03) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 16.74 | $ 14.95 | $ 13.65 | $ 11.98 | $ 25.50 | $ 22.53 |
Total Return B, C, D | 13.01% | 10.32% | 17.24% | (46.33)% | 21.81% | 20.62% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.05% A | 2.06% | 2.09% | 2.01% | 2.00% | 2.02% |
Expenses net of fee waivers, if any | 2.05% A | 2.06% | 2.09% | 2.01% | 2.00% | 2.02% |
Expenses net of all reductions | 2.03% A | 2.04% | 2.06% | 1.97% | 1.96% | 1.96% |
Net investment income (loss) | .79% A,J | .21% | .68% | 1.04% | .51% | .57% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 412 | $ 419 | $ 502 | $ 618 | $ 1,673 | $ 1,395 |
Portfolio turnover rate G | 50% A | 59% | 92% | 88% | 105% | 83% |
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 Investment income per share reflects special dividend which amounted to $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .07%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 15.90 | $ 14.48 | $ 12.81 | $ 27.06 | $ 23.78 | $ 20.56 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .15 I | .19 | .21 | .41 | .38 | .37 |
Net realized and unrealized gain (loss) | 1.98 | 1.47 | 1.98 | (11.34) | 4.76 | 3.98 |
Total from investment operations | 2.13 | 1.66 | 2.19 | (10.93) | 5.14 | 4.35 |
Distributions from net investment income | (.25) | (.23) | (.52) | (.30) | (.29) | (.18) |
Distributions from net realized gain | (.03) | (.01) | - | (3.02) | (1.57) | (.95) |
Total distributions | (.28) | (.24) | (.52) | (3.32) | (1.86) | (1.13) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 17.75 | $ 15.90 | $ 14.48 | $ 12.81 | $ 27.06 | $ 23.78 |
Total Return B, C | 13.58% | 11.55% | 18.45% | (45.79)% | 23.07% | 21.96% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .99% A | .99% | 1.07% | .99% | .98% | .97% |
Expenses net of fee waivers, if any | .99% A | .99% | 1.07% | .99% | .98% | .97% |
Expenses net of all reductions | .97% A | .97% | 1.04% | .94% | .94% | .92% |
Net investment income (loss) | 1.85% A,I | 1.28% | 1.70% | 2.07% | 1.53% | 1.62% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 1,171 | $ 1,316 | $ 1,540 | $ 2,235 | $ 5,266 | $ 4,220 |
Portfolio turnover rate F | 50% A | 59% | 92% | 88% | 105% | 83% |
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 Investment income per share reflects special dividend which amounted to $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.13%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2011 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Advisor® Diversified International Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the
Semiannual Report
3. Significant Accounting Policies - continued
date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For master notes, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are 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, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 824,810 |
Gross unrealized depreciation | (102,847) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 721,963 |
Tax cost | $ 3,065,427 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update changes the wording used to describe the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. The update is effective during interim and annual periods beginning after December 15, 2011. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Semiannual Report
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $893,956 and $1,516,769, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .71% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 1,569 | $ 172 |
Class T | .25% | .25% | 1,484 | 25 |
Class B | .75% | .25% | 733 | 557 |
Class C | .75% | .25% | 2,044 | 201 |
| | | $ 5,830 | $ 955 |
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% to 1% for Class B, 1% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. 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 | $ 72 |
Class T | 21 |
Class B* | 117 |
Class C* | 7 |
| $ 217 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 1,756 | .28 |
Class T | 810 | .27 |
Class B | 222 | .30 |
Class C | 544 | .27 |
Institutional Class | 1,270 | .21 |
| $ 4,602 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $9 for the period.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The interest expense amounted to two hundred and forty-five dollars under the interfund borrowing program. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average Interest Rate |
Borrower | $ 12,547 | .35% |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $6 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
8. Security Lending - continued
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 $726 including eighty-eight dollars from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $363 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 $1.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
From net investment income | | |
Class A | $ 15,976 | $ 21,908 |
Class T | 6,296 | 9,175 |
Class B | 993 | 1,280 |
Class C | 2,886 | 3,424 |
Institutional Class | 19,246 | 23,986 |
Total | $ 45,397 | $ 59,773 |
From net realized gain | | |
Class A | $ 2,738 | $ 1,135 |
Class T | 1,311 | 581 |
Class B | 343 | 138 |
Class C | 927 | 360 |
Institutional Class | 2,707 | 1,038 |
Total | $ 8,026 | $ 3,252 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 | Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
Class A | | | | |
Shares sold | 5,069 | 11,857 | $ 82,332 | $ 171,401 |
Reinvestment of distributions | 1,034 | 1,361 | 16,424 | 20,356 |
Shares redeemed | (18,067) | (46,493) | (293,543) | (670,244) |
Net increase (decrease) | (11,964) | (33,275) | $ (194,787) | $ (478,487) |
Class T | | | | |
Shares sold | 1,685 | 5,521 | $ 27,091 | $ 79,294 |
Reinvestment of distributions | 447 | 636 | 7,039 | 9,432 |
Shares redeemed | (8,774) | (24,938) | (141,392) | (355,762) |
Net increase (decrease) | (6,642) | (18,781) | $ (107,262) | $ (267,036) |
Class B | | | | |
Shares sold | 43 | 579 | $ 659 | $ 8,025 |
Reinvestment of distributions | 75 | 88 | 1,145 | 1,270 |
Shares redeemed | (2,361) | (4,186) | (36,727) | (57,671) |
Net increase (decrease) | (2,243) | (3,519) | $ (34,923) | $ (48,376) |
Class C | | | | |
Shares sold | 815 | 1,779 | $ 12,777 | $ 24,719 |
Reinvestment of distributions | 191 | 201 | 2,917 | 2,898 |
Shares redeemed | (4,404) | (10,773) | (68,594) | (148,900) |
Net increase (decrease) | (3,398) | (8,793) | $ (52,900) | $ (121,283) |
Institutional Class | | | | |
Shares sold | 6,511 | 22,171 | $ 107,429 | $ 322,782 |
Reinvestment of distributions | 1,047 | 1,330 | 16,863 | 20,174 |
Shares redeemed | (24,333) | (47,045) | (401,199) | (687,069) |
Net increase (decrease) | (16,775) | (23,544) | $ (276,907) | $ (344,113) |
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 (U.K.) Ltd.
Fidelity Management & Research
Company (Hong Kong) Limited
Fidelity Management & Research
Company (Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
ADIFI-USAN-0611
1.784872.108
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Emerging Asia
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense Ratio | Beginning
Account Value
November 1, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010 to April 30, 2011 |
Class A | 1.41% | | | |
Actual | | $ 1,000.00 | $ 1,111.10 | $ 7.38 |
HypotheticalA | | $ 1,000.00 | $ 1,017.80 | $ 7.05 |
Class T | 1.71% | | | |
Actual | | $ 1,000.00 | $ 1,109.40 | $ 8.94 |
HypotheticalA | | $ 1,000.00 | $ 1,016.31 | $ 8.55 |
Class B | 2.21% | | | |
Actual | | $ 1,000.00 | $ 1,106.80 | $ 11.54 |
HypotheticalA | | $ 1,000.00 | $ 1,013.84 | $ 11.04 |
Class C | 2.15% | | | |
Actual | | $ 1,000.00 | $ 1,107.40 | $ 11.23 |
HypotheticalA | | $ 1,000.00 | $ 1,014.13 | $ 10.74 |
Institutional Class | 1.12% | | | |
Actual | | $ 1,000.00 | $ 1,112.90 | $ 5.87 |
HypotheticalA | | $ 1,000.00 | $ 1,019.24 | $ 5.61 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Samsung Electronics Co. Ltd. | 4.1 | 3.7 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 3.3 | 2.5 |
Industrial & Commercial Bank of China Ltd. (H Shares) | 2.7 | 0.8 |
China Construction Bank Corp. (H Shares) | 2.1 | 2.5 |
CNOOC Ltd. | 1.9 | 1.9 |
Hyundai Motor Co. | 1.7 | 1.2 |
Keppel Corp. Ltd. | 1.7 | 1.3 |
LG Chemical Ltd. | 1.6 | 0.9 |
Fubon Financial Holding Co. Ltd. | 1.5 | 1.1 |
PetroChina Co. Ltd. (H Shares) | 1.5 | 0.0 |
| 22.1 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 30.6 | 32.0 |
Information Technology | 16.9 | 15.8 |
Industrials | 11.6 | 10.4 |
Materials | 10.4 | 8.3 |
Consumer Discretionary | 8.5 | 9.3 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011 | As of October 31, 2010 |
| Stocks 97.9% | | | Stocks 97.3% | |
| Short-Term
Investments and
Net Other Assets 2.1% | | | Short-Term
Investments and
Net Other Assets 2.7% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.9% |
| Shares | | Value |
Bermuda - 2.7% |
Cheung Kong Infrastructure Holdings Ltd. | 208,000 | | $ 1,013,713 |
China Yurun Food Group Ltd. | 417,000 | | 1,527,581 |
Cosco Pacific Ltd. | 782,000 | | 1,619,119 |
GOME Electrical Appliances Holdings Ltd. (a) | 3,227,000 | | 1,159,282 |
Great Eagle Holdings Ltd. | 70,000 | | 248,767 |
Huabao International Holdings Ltd. | 773,000 | | 1,146,616 |
Jardine Matheson Holdings Ltd. | 52,000 | | 2,496,000 |
Jinhui Shipping & Transportation Ltd. (a) | 129,000 | | 410,628 |
Noble Group Ltd. | 1,673,272 | | 3,048,402 |
PAX Global Technology Ltd. | 259,000 | | 94,045 |
SmarTone Telecommunications Holdings Ltd. | 452,000 | | 699,566 |
TOTAL BERMUDA | | 13,463,719 |
Canada - 0.3% |
Niko Resources Ltd. | 15,500 | | 1,309,825 |
Sino-Forest Corp. (a) | 7,400 | | 183,885 |
TOTAL CANADA | | 1,493,710 |
Cayman Islands - 4.2% |
Ajisen (China) Holdings Ltd. | 299,000 | | 596,745 |
Central China Real Estate Ltd. | 3,012,000 | | 833,833 |
Chaoda Modern Agriculture (Holdings) Ltd. | 3,564,000 | | 2,216,515 |
China Infrastructure Machinery Holdings Ltd. | 1,147,000 | | 846,260 |
China Shanshui Cement Group Ltd. | 994,000 | | 1,113,503 |
China ZhengTong Auto Services Holdings Ltd. | 393,000 | | 444,803 |
Country Garden Holdings Co. Ltd. | 3,946,000 | | 1,600,492 |
Global Dairy Holdings Ltd. | 484,000 | | 209,397 |
International Taifeng Holdings Ltd. | 1,524,000 | | 826,139 |
Kingboard Chemical Holdings Ltd. | 680,000 | | 3,725,584 |
KWG Property Holding Ltd. | 645,000 | | 465,917 |
Ming Fung Jewellery Group Ltd. | 1,030,000 | | 125,993 |
New World Department Store China Ltd. | 261,000 | | 227,854 |
Samson Holding Ltd. | 1,352,000 | | 302,909 |
Shenguan Holdings Group Ltd. | 662,000 | | 879,678 |
Shui On Land Ltd. | 1,734,445 | | 768,254 |
Spreadtrum Communications, Inc. ADR (a) | 41,500 | | 888,100 |
Suntech Power Holdings Co. Ltd. sponsored ADR (a)(d) | 135,400 | | 1,214,538 |
Trina Solar Ltd. (a)(d) | 47,500 | | 1,353,275 |
Xingda International Holdings Ltd. | 717,000 | | 827,205 |
Yingli Green Energy Holding Co. Ltd. ADR (a)(d) | 20,700 | | 259,371 |
Youyuan International Holdings Ltd. | 1,492,000 | | 864,504 |
TOTAL CAYMAN ISLANDS | | 20,590,869 |
Common Stocks - continued |
| Shares | | Value |
China - 16.7% |
Agricultural Bank China Ltd. (H Shares) | 7,426,000 | | $ 4,388,878 |
Air China Ltd. (H Shares) | 1,336,000 | | 1,352,119 |
Anhui Conch Cement Co. Ltd. (H Shares) | 531,000 | | 2,505,846 |
Anhui Expressway Co. Ltd. (H Shares) | 752,000 | | 629,386 |
Baidu.com, Inc. sponsored ADR (a) | 11,300 | | 1,678,276 |
Bank of China Ltd. (H Shares) | 5,430,000 | | 2,999,459 |
China Communications Construction Co. Ltd. (H Shares) | 1,904,000 | | 1,757,810 |
China Communications Services Corp. Ltd. (H Shares) | 1,960,000 | | 1,196,245 |
China Construction Bank Corp. (H Shares) | 10,933,000 | | 10,332,877 |
China Cosco Holdings Co. Ltd. (H Shares) (a) | 1,167,000 | | 1,120,974 |
China Metal Recycling (Holdings) Ltd. | 826,200 | | 1,146,806 |
China Minsheng Banking Corp. Ltd. (H Shares) | 5,809,500 | | 5,572,895 |
China Oilfield Services Ltd. (H Shares) | 1,098,000 | | 2,171,598 |
China Pacific Insurance Group Co. Ltd. (H Shares) | 517,200 | | 2,234,276 |
China Petroleum & Chemical Corp. (H Shares) | 4,816,000 | | 4,854,354 |
China Southern Airlines Ltd. (H Shares) (a) | 840,000 | | 440,687 |
China Telecom Corp. Ltd. (H Shares) | 5,984,000 | | 3,481,746 |
Focus Media Holding Ltd. ADR (a) | 34,200 | | 1,202,130 |
Great Wall Motor Co. Ltd. (H Shares) | 608,250 | | 1,090,203 |
Guangzhou R&F Properties Co. Ltd. (H Shares) | 778,400 | | 1,060,411 |
Harbin Power Equipment Co. Ltd. (H Shares) | 1,864,000 | | 1,797,685 |
Huaneng Power International, Inc. (H Shares) | 2,446,000 | | 1,350,842 |
Industrial & Commercial Bank of China Ltd. (H Shares) | 15,459,000 | | 13,077,737 |
PetroChina Co. Ltd. (H Shares) | 4,988,000 | | 7,240,535 |
Ping An Insurance Group Co. China Ltd. (H Shares) | 371,500 | | 4,039,655 |
Shenzhen Chiwan Wharf Holding Ltd. (B Shares) | 112,799 | | 185,474 |
Shenzhen Expressway Co. Ltd. (H Shares) | 1,340,000 | | 893,759 |
Sinotrans Ltd. (H Shares) | 3,637,000 | | 889,780 |
Tianneng Power International Ltd. | 278,000 | | 146,762 |
Zhongpin, Inc. (a)(d) | 39,300 | | 656,310 |
TOTAL CHINA | | 81,495,515 |
Hong Kong - 11.7% |
AIA Group Ltd. | 1,837,600 | | 6,187,405 |
BYD Electronic International Co. Ltd. | 547,500 | | 293,267 |
Cathay Pacific Airways Ltd. | 1,312,000 | | 3,273,961 |
China Overseas Land & Investment Ltd. | 1,510,000 | | 2,904,781 |
Citic Pacific Ltd. | 856,000 | | 2,557,099 |
CNOOC Ltd. | 3,747,500 | | 9,314,641 |
Dah Chong Hong Holdings Ltd. | 335,000 | | 383,040 |
First Pacific Co. Ltd. | 798,000 | | 750,087 |
Galaxy Entertainment Group Ltd. (a) | 126,000 | | 226,486 |
Common Stocks - continued |
| Shares | | Value |
Hong Kong - continued |
Giordano International Ltd. | 382,000 | | $ 275,938 |
Hang Lung Group Ltd. | 266,000 | | 1,791,303 |
Hong Kong Exchanges and Clearing Ltd. | 84,000 | | 1,916,588 |
Hongkong Land Holdings Ltd. | 585,000 | | 4,381,650 |
Hysan Development Co. Ltd. | 203,000 | | 947,523 |
New World Development Co. Ltd. | 1,095,000 | | 1,920,335 |
PCCW Ltd. | 7,391,000 | | 2,931,162 |
Power Assets Holdings Ltd. | 1,006,000 | | 7,040,174 |
Sino-Ocean Land Holdings Ltd. | 1,947,500 | | 1,105,864 |
Sinotruk Hong Kong Ltd. | 425,500 | | 352,835 |
SJM Holdings Ltd. | 629,000 | | 1,355,788 |
Swire Pacific Ltd. (A Shares) | 245,500 | | 3,749,057 |
Wharf Holdings Ltd. | 457,000 | | 3,342,338 |
TOTAL HONG KONG | | 57,001,322 |
India - 8.6% |
Apollo Tyres Ltd. | 455,823 | | 714,815 |
Axis Bank Ltd. | 69,200 | | 2,011,812 |
Bajaj Auto Ltd. | 49,700 | | 1,655,356 |
Bank of Baroda | 98,935 | | 2,072,930 |
Bank of India | 112,326 | | 1,160,190 |
Bharti Airtel Ltd. | 315,790 | | 2,711,919 |
Canara Bank | 125,531 | | 1,792,267 |
Dena Bank | 129,933 | | 312,098 |
Ess Dee Aluminium Ltd. | 87,436 | | 911,998 |
Grasim Industries Ltd. | 20,528 | | 1,194,542 |
HCL Infosystems Ltd. | 145,422 | | 364,910 |
Hindalco Industries Ltd. | 380,098 | | 1,855,613 |
ICSA (India) Ltd. | 186,602 | | 488,694 |
Idea Cellular Ltd. (a) | 431,913 | | 672,439 |
Indian Oil Corp. Ltd. | 198,190 | | 1,521,972 |
Indian Overseas Bank | 287,839 | | 992,201 |
Jubilant Industries Ltd. (a) | 5,873 | | 31,651 |
Mahindra & Mahindra Financial Services Ltd. | 84,060 | | 1,390,110 |
Oriental Bank of Commerce | 177,957 | | 1,389,516 |
Patni Computer Systems Ltd. | 158,817 | | 1,536,361 |
Piramal Healthcare Ltd. | 63,145 | | 654,065 |
Ramky Infrastructure Ltd. | 73,635 | | 484,605 |
Reliance Infrastructure Ltd. | 35,910 | | 535,546 |
Shree Renuka Sugars Ltd. | 232,620 | | 370,310 |
Shriram Transport Finance Co. Ltd. | 24,200 | | 423,739 |
Sintex Industries Ltd. | 172,960 | | 677,888 |
Common Stocks - continued |
| Shares | | Value |
India - continued |
State Bank of India | 40,481 | | $ 2,565,428 |
Sun TV Ltd. | 47,728 | | 460,078 |
Tata Consultancy Services Ltd. | 170,782 | | 4,498,295 |
Tata Motors Ltd. Class A | 89,521 | | 1,374,523 |
Tata Power Co. Ltd. | 41,259 | | 1,216,094 |
Titan Industries Ltd. | 12,572 | | 1,144,732 |
Tulip Telecom Ltd. | 123,038 | | 434,685 |
Welspun Gujarat Stahl Rohren Ltd. | 240,146 | | 1,039,430 |
Yes Bank Ltd. | 162,600 | | 1,121,170 |
Zee Learn Ltd. (a) | 35,117 | | 18,013 |
TOTAL INDIA | | 41,799,995 |
Indonesia - 3.4% |
PT Aneka Tambang Tbk | 877,500 | | 233,105 |
PT Astra International Tbk | 514,000 | | 3,370,053 |
PT Bank Rakyat Indonesia Tbk | 8,487,500 | | 6,392,391 |
PT BISI International Tbk (a) | 376,500 | | 73,418 |
PT Indofood Sukses Makmur Tbk | 3,024,000 | | 1,959,741 |
PT Indosat Tbk | 392,500 | | 245,198 |
PT Perusahaan Gas Negara Tbk Series B | 4,731,000 | | 2,209,718 |
PT Tower Bersama Infrastructure Tbk | 2,425,000 | | 686,669 |
PT XL Axiata Tbk | 1,552,500 | | 1,232,720 |
TOTAL INDONESIA | | 16,403,013 |
Japan - 0.0% |
Daikokutenbussan Co. Ltd. | 400 | | 13,071 |
SMC Corp. | 1,400 | | 255,714 |
TOTAL JAPAN | | 268,785 |
Korea (South) - 21.0% |
BS Financial Group, Inc. (a) | 333,090 | | 4,863,081 |
Cheil Worldwide, Inc. | 142,040 | | 1,834,489 |
CJ Corp. | 37,187 | | 2,812,081 |
Daegu Bank Co. Ltd. | 72,680 | | 1,217,568 |
Dongbu Insurance Co. Ltd. | 31,260 | | 1,492,054 |
Doosan Co. Ltd. | 15,093 | | 1,857,490 |
Doosan Construction & Engineering Co. Ltd. | 133,800 | | 641,138 |
Duksan Hi-Metal Co. Ltd. (a) | 43,555 | | 927,352 |
GS Holdings Corp. | 23,370 | | 1,957,524 |
Honam Petrochemical Corp. | 7,131 | | 2,522,711 |
Hyundai Department Store Co. Ltd. | 6,787 | | 997,247 |
Hyundai Heavy Industries Co. Ltd. | 14,335 | | 7,177,559 |
Hyundai Hysco Co. Ltd. | 32,160 | | 1,310,779 |
Common Stocks - continued |
| Shares | | Value |
Korea (South) - continued |
Hyundai Mobis | 15,284 | | $ 5,135,193 |
Hyundai Motor Co. | 36,543 | | 8,430,365 |
Hyundai Steel Co. | 34,900 | | 4,442,113 |
Industrial Bank of Korea | 234,770 | | 4,515,228 |
Kia Motors Corp. | 53,840 | | 3,874,866 |
Korea Investment Holdings Co. Ltd. | 20,080 | | 788,353 |
Korea Zinc Co. Ltd. | 4,609 | | 1,820,306 |
Kyeryong Construction Industrial Co. Ltd. | 11,900 | | 157,033 |
LG Chemical Ltd. | 15,477 | | 7,676,936 |
LIG Non-Life Insurance Co. Ltd. | 36,410 | | 901,305 |
Lotte Shopping Co. Ltd. | 5,245 | | 2,397,924 |
NHN Corp. (a) | 14,011 | | 2,786,463 |
Samsung Card Co. Ltd. | 28,541 | | 1,421,039 |
Samsung Electronics Co. Ltd. | 24,234 | | 20,253,576 |
SK Telecom Co. Ltd. | 47,531 | | 7,222,811 |
Sungwoo Hitech Co. Ltd. | 36,031 | | 730,062 |
TK Corp. (a) | 9,901 | | 223,780 |
TOTAL KOREA (SOUTH) | | 102,388,426 |
Malaysia - 1.7% |
AMMB Holdings Bhd | 1,138,900 | | 2,452,720 |
Axiata Group Bhd (a) | 1,470,100 | | 2,431,558 |
Glomac Bhd | 552,400 | | 346,823 |
Hong Leong Bank Bhd | 138,400 | | 485,860 |
Malayan Banking Bhd | 589,971 | | 1,742,530 |
RHB Capital Bhd | 267,700 | | 800,615 |
TOTAL MALAYSIA | | 8,260,106 |
Mauritius - 0.4% |
Golden Agri-Resources Ltd. | 3,739,000 | | 2,031,318 |
Philippines - 0.3% |
Aboitiz Power Corp. | 1,096,000 | | 807,822 |
Universal Robina Corp. | 822,000 | | 716,285 |
TOTAL PHILIPPINES | | 1,524,107 |
Singapore - 4.7% |
Avago Technologies Ltd. | 13,500 | | 451,710 |
China Minzhong Food Corp. Ltd. | 267,000 | | 394,812 |
City Developments Ltd. | 220,000 | | 2,128,018 |
First Resources Ltd. | 999,000 | | 1,126,278 |
Keppel Corp. Ltd. | 853,600 | | 8,298,550 |
SembCorp Industries Ltd. | 965,000 | | 4,257,179 |
Common Stocks - continued |
| Shares | | Value |
Singapore - continued |
SembCorp Marine Ltd. | 656,000 | | $ 3,038,699 |
Yangzijiang Shipbuilding Holdings Ltd. | 762,000 | | 1,126,768 |
Yanlord Land Group Ltd. | 1,816,000 | | 2,151,219 |
TOTAL SINGAPORE | | 22,973,233 |
Taiwan - 16.4% |
Advanced Semiconductor Engineering, Inc. | 2,607,000 | | 3,048,441 |
ASUSTeK Computer, Inc. | 199,000 | | 1,789,855 |
Far East Department Stores Co. Ltd. | 419,000 | | 739,111 |
Farglory Land Development Co. Ltd. | 330,000 | | 751,229 |
Formosa Chemicals & Fibre Corp. | 1,628,000 | | 6,555,133 |
Formosa Plastics Corp. | 1,770,000 | | 7,219,453 |
Foxconn Technology Co. Ltd. | 247,000 | | 1,179,676 |
Fubon Financial Holding Co. Ltd. | 5,057,549 | | 7,405,162 |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 758,000 | | 2,867,108 |
HTC Corp. | 148,750 | | 6,741,328 |
Huaku Development Co. Ltd. | 325,971 | | 955,697 |
Insyde Software Corp. | 98,195 | | 484,385 |
King Slide Works Co. Ltd. | 102,850 | | 530,654 |
Nan Ya Plastics Corp. | 1,204,000 | | 3,685,243 |
Quanta Computer, Inc. | 862,000 | | 1,697,856 |
Siliconware Precision Industries Co. Ltd. | 1,366,000 | | 1,828,824 |
TaiChung Business Bank (a) | 788,000 | | 329,650 |
Taishin Financial Holdings Co. Ltd. | 10,966,890 | | 6,442,116 |
Taiwan Cement Corp. | 1,471,424 | | 2,151,865 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 6,326,393 | | 16,336,603 |
Tripod Technology Corp. | 639,000 | | 3,018,459 |
Unified-President Enterprises Corp. | 1,099,000 | | 1,578,484 |
United Microelectronics Corp. | 4,989,000 | | 2,599,785 |
TOTAL TAIWAN | | 79,936,117 |
Thailand - 5.3% |
Advanced Info Service PCL (For. Reg.) | 486,500 | | 1,507,075 |
Asian Property Development PCL (For. Reg.) | 3,010,900 | | 635,254 |
Bangkok Bank Public Co. Ltd.: | | | |
(For. Reg.) | 295,500 | | 1,682,351 |
NVDR | 62,100 | | 353,550 |
Banpu PCL (For. Reg.) | 198,700 | | 4,964,173 |
BEC World PCL (For. Reg.) | 1,397,700 | | 1,614,891 |
Bumrungrad Hospital PCL (For. Reg.) | 173,400 | | 225,025 |
Charoen Pokphand Foods PCL (For. Reg.) | 2,027,100 | | 2,002,661 |
Electricity Generating PCL (For. Reg.) | 661,400 | | 2,098,716 |
Common Stocks - continued |
| Shares | | Value |
Thailand - continued |
LPN Development PCL (For. Reg.) | 1,772,400 | | $ 635,120 |
National Finance PCL (For. Reg.) | 1,128,300 | | 1,152,483 |
PTT PCL (For. Reg.) | 214,500 | | 2,693,821 |
Siam Cement PCL: | | | |
(For. Reg.) | 98,200 | | 1,361,514 |
NVDR unit | 7,800 | | 97,957 |
Siam Commercial Bank PCL (For. Reg.) | 669,400 | | 2,600,482 |
Siam Makro PCL (For. Reg.) | 191,500 | | 1,061,395 |
Supalai PCL (For. Reg.) | 1,471,800 | | 591,480 |
Total Access Communication PCL unit | 263,900 | | 446,314 |
TOTAL THAILAND | | 25,724,262 |
United Kingdom - 0.3% |
HSBC Holdings PLC (Hong Kong) | 143,228 | | 1,558,593 |
United States of America - 0.2% |
China Natural Gas, Inc. (a)(d) | 13,300 | | 70,623 |
Cognizant Technology Solutions Corp. Class A (a) | 7,700 | | 638,330 |
SORL Auto Parts, Inc. (a)(d) | 45,900 | | 236,385 |
TOTAL UNITED STATES OF AMERICA | | 945,338 |
TOTAL COMMON STOCKS (Cost $379,489,700) | 477,858,428 |
Money Market Funds - 2.0% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 6,990,757 | | 6,990,757 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 3,045,770 | | 3,045,770 |
TOTAL MONEY MARKET FUNDS (Cost $10,036,527) | 10,036,527 |
TOTAL INVESTMENT PORTFOLIO - 99.9% (Cost $389,526,227) | | 487,894,955 |
NET OTHER ASSETS (LIABILITIES) - 0.1% | | 419,232 |
NET ASSETS - 100% | $ 488,314,187 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 6,052 |
Fidelity Securities Lending Cash Central Fund | 50,416 |
Total | $ 56,468 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Korea (South) | $ 102,388,426 | $ 95,165,615 | $ 7,222,811 | $ - |
China | 81,495,515 | 64,127,351 | 17,368,164 | - |
Taiwan | 79,936,117 | 56,122,464 | 23,813,653 | - |
Hong Kong | 57,001,322 | 47,686,681 | 9,314,641 | - |
India | 41,799,995 | 36,684,064 | 5,115,931 | - |
Thailand | 25,724,262 | 25,724,262 | - | - |
Singapore | 22,973,233 | 22,973,233 | - | - |
Cayman Islands | 20,590,869 | 20,590,869 | - | - |
Indonesia | 16,403,013 | 16,403,013 | - | - |
Other | 29,545,676 | 27,232,438 | 2,313,238 | - |
Money Market Funds | 10,036,527 | 10,036,527 | - | - |
Total Investments in Securities: | $ 487,894,955 | $ 422,746,517 | $ 65,148,438 | $ - |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Beginning Balance | $ 10,299 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | (10,299) |
Ending Balance | $ - |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at April 30, 2011 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $3,006,668) - See accompanying schedule: Unaffiliated issuers (cost $379,489,700) | $ 477,858,428 | |
Fidelity Central Funds (cost $10,036,527) | 10,036,527 | |
Total Investments (cost $389,526,227) | | $ 487,894,955 |
Foreign currency held at value (cost $85,442) | | 85,650 |
Receivable for investments sold | | 1,133,533 |
Receivable for fund shares sold | | 1,674,048 |
Dividends receivable | | 1,637,579 |
Distributions receivable from Fidelity Central Funds | | 6,011 |
Prepaid expenses | | 368 |
Other receivables | | 274,658 |
Total assets | | 492,706,802 |
| | |
Liabilities | | |
Payable for investments purchased | $ 22,454 | |
Payable for fund shares redeemed | 661,291 | |
Accrued management fee | 281,259 | |
Distribution and service plan fees payable | 179,169 | |
Other affiliated payables | 114,180 | |
Other payables and accrued expenses | 88,492 | |
Collateral on securities loaned, at value | 3,045,770 | |
Total liabilities | | 4,392,615 |
| | |
Net Assets | | $ 488,314,187 |
Net Assets consist of: | | |
Paid in capital | | $ 363,338,431 |
Accumulated net investment loss | | (159,286) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 26,747,236 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 98,387,806 |
Net Assets | | $ 488,314,187 |
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, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($227,239,171 ÷ 6,596,402 shares) | | $ 34.45 |
| | |
Maximum offering price per share (100/94.25 of $34.45) | | $ 36.55 |
Class T:
Net Asset Value and redemption price per share ($69,637,195 ÷ 2,070,469 shares) | | $ 33.63 |
| | |
Maximum offering price per share (100/96.50 of $33.63) | | $ 34.85 |
Class B:
Net Asset Value and offering price per share ($27,969,746 ÷ 872,001 shares)A | | $ 32.08 |
| | |
Class C:
Net Asset Value and offering price per share ($99,565,612 ÷ 3,125,538 shares)A | | $ 31.86 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($63,902,463 ÷ 1,808,398 shares) | | $ 35.34 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 3,682,976 |
Interest | | 26,248 |
Income from Fidelity Central Funds | | 56,468 |
Income before foreign taxes withheld | | 3,765,692 |
Less foreign taxes withheld | | (390,035) |
Total income | | 3,375,657 |
| | |
Expenses | | |
Management fee | $ 1,580,911 | |
Transfer agent fees | 565,668 | |
Distribution and service plan fees | 1,032,167 | |
Accounting and security lending fees | 116,091 | |
Custodian fees and expenses | 201,900 | |
Independent trustees' compensation | 1,091 | |
Registration fees | 87,321 | |
Audit | 46,446 | |
Legal | 756 | |
Interest | 1,005 | |
Miscellaneous | 1,977 | |
Total expenses before reductions | 3,635,333 | |
Expense reductions | (101,667) | 3,533,666 |
Net investment income (loss) | | (158,009) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 28,543,661 | |
Foreign currency transactions | 43,115 | |
Futures contracts | (459,204) | |
Total net realized gain (loss) | | 28,127,572 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 18,729,395 | |
Assets and liabilities in foreign currencies | 6,252 | |
Total change in net unrealized appreciation (depreciation) | | 18,735,647 |
Net gain (loss) | | 46,863,219 |
Net increase (decrease) in net assets resulting from operations | | $ 46,705,210 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (158,009) | $ 2,119,167 |
Net realized gain (loss) | 28,127,572 | 58,114,163 |
Change in net unrealized appreciation (depreciation) | 18,735,647 | 23,767,257 |
Net increase (decrease) in net assets resulting
from operations | 46,705,210 | 84,000,587 |
Distributions to shareholders from net investment income | (1,974,209) | (971,544) |
Distributions to shareholders from net realized gain | (23,691,358) | (2,532,430) |
Total distributions | (25,665,567) | (3,503,974) |
Share transactions - net increase (decrease) | 54,597,124 | 46,082,399 |
Redemption fees | 60,338 | 86,566 |
Total increase (decrease) in net assets | 75,697,105 | 126,665,578 |
| | |
Net Assets | | |
Beginning of period | 412,617,082 | 285,951,504 |
End of period (including accumulated net investment loss of $159,286 and undistributed net investment income of $1,972,932, respectively) | $ 488,314,187 | $ 412,617,082 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 32.97 | $ 25.96 | $ 15.74 | $ 37.55 | $ 22.48 | $ 17.70 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .25 | .19 | .19 | .24 | .22 |
Net realized and unrealized gain (loss) | 3.47 | 7.09 | 10.07 | (18.72) | 16.64 | 6.10 |
Total from investment operations | 3.49 | 7.34 | 10.26 | (18.53) | 16.88 | 6.32 |
Distributions from net investment income | (.20) | (.12) | (.05) | (.23) | (.15) | (.16) |
Distributions from net realized gain | (1.81) | (.22) | - | (3.06) | (1.68) | (1.39) |
Total distributions | (2.01) | (.34) | (.05) | (3.29) | (1.83) | (1.55) |
Redemption fees added to paid in capital E | - J | .01 | .01 | .01 | .02 | .01 |
Net asset value, end of period | $ 34.45 | $ 32.97 | $ 25.96 | $ 15.74 | $ 37.55 | $ 22.48 |
Total Return B, C, D | 11.11% | 28.53% | 65.43% | (53.66)% | 80.43% | 38.02% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.41% A | 1.44% | 1.54% | 1.50% | 1.47% | 1.73% |
Expenses net of fee waivers, if any | 1.41% A | 1.44% | 1.50% | 1.50% | 1.47% | 1.50% |
Expenses net of all reductions | 1.37% A | 1.40% | 1.41% | 1.41% | 1.40% | 1.39% |
Net investment income (loss) | .15% A | .86% | .94% | .73% | .88% | 1.08% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 227,239 | $ 189,255 | $ 131,564 | $ 71,722 | $ 152,630 | $ 55,790 |
Portfolio turnover rate G | 124% A | 138% | 91% | 92% I | 66% | 77% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 32.20 | $ 25.40 | $ 15.43 | $ 36.88 | $ 22.13 | $ 17.45 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | .15 | .14 | .12 | .16 | .17 |
Net realized and unrealized gain (loss) | 3.38 | 6.94 | 9.86 | (18.38) | 16.37 | 6.01 |
Total from investment operations | 3.36 | 7.09 | 10.00 | (18.26) | 16.53 | 6.18 |
Distributions from net investment income | (.12) | (.08) | (.04) | (.14) | (.12) | (.12) |
Distributions from net realized gain | (1.81) | (.22) | - | (3.06) | (1.68) | (1.39) |
Total distributions | (1.93) | (.30) | (.04) | (3.20) | (1.80) | (1.51) |
Redemption fees added to paid in capital E | - J | .01 | .01 | .01 | .02 | .01 |
Net asset value, end of period | $ 33.63 | $ 32.20 | $ 25.40 | $ 15.43 | $ 36.88 | $ 22.13 |
Total Return B, C, D | 10.94% | 28.13% | 65.06% | (53.79)% | 79.98% | 37.69% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.72% A | 1.74% | 1.84% | 1.80% | 1.79% | 2.07% |
Expenses net of fee waivers, if any | 1.71% A | 1.74% | 1.75% | 1.75% | 1.75% | 1.75% |
Expenses net of all reductions | 1.67% A | 1.70% | 1.66% | 1.66% | 1.67% | 1.64% |
Net investment income (loss) | (.16)% A | .55% | .69% | .48% | .61% | .83% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 69,637 | $ 61,620 | $ 45,259 | $ 25,205 | $ 64,813 | $ 28,850 |
Portfolio turnover rate G | 124% A | 138% | 91% | 92% I | 66% | 77% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 30.72 | $ 24.29 | $ 14.82 | $ 35.55 | $ 21.42 | $ 16.94 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.10) | .02 | .04 | (.01) | .03 | .06 |
Net realized and unrealized gain (loss) | 3.23 | 6.61 | 9.45 | (17.68) | 15.79 | 5.84 |
Total from investment operations | 3.13 | 6.63 | 9.49 | (17.69) | 15.82 | 5.90 |
Distributions from net investment income | - | - | (.03) | - | (.03) | (.04) |
Distributions from net realized gain | (1.77) | (.21) | - | (3.05) | (1.68) | (1.39) |
Total distributions | (1.77) | (.21) | (.03) | (3.05) | (1.71) | (1.43) |
Redemption fees added to paid in capital E | - J | .01 | .01 | .01 | .02 | .01 |
Net asset value, end of period | $ 32.08 | $ 30.72 | $ 24.29 | $ 14.82 | $ 35.55 | $ 21.42 |
Total Return B,C,D | 10.68% | 27.48% | 64.23% | (54.01)% | 79.01% | 36.99% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.22% A | 2.24% | 2.32% | 2.29% | 2.28% | 2.59% |
Expenses net of fee waivers, if any | 2.21% A | 2.24% | 2.25% | 2.25% | 2.25% | 2.25% |
Expenses net of all reductions | 2.16% A | 2.20% | 2.16% | 2.16% | 2.17% | 2.14% |
Net investment income (loss) | (.65)% A | .06% | .19% | (.02)% | .11% | .33% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 27,970 | $ 29,611 | $ 25,750 | $ 17,040 | $ 40,775 | $ 18,985 |
Portfolio turnover rate G | 124% A | 138% | 91% | 92% I | 66% | 77% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 30.58 | $ 24.19 | $ 14.76 | $ 35.48 | $ 21.39 | $ 16.94 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.09) | .03 | .04 | - J | .04 | .06 |
Net realized and unrealized gain (loss) | 3.22 | 6.59 | 9.41 | (17.63) | 15.76 | 5.84 |
Total from investment operations | 3.13 | 6.62 | 9.45 | (17.63) | 15.80 | 5.90 |
Distributions from net investment income | (.04) | (.02) | (.03) | (.04) | (.05) | (.07) |
Distributions from net realized gain | (1.81) | (.22) | - | (3.06) | (1.68) | (1.39) |
Total distributions | (1.85) | (.24) | (.03) | (3.10) | (1.73) | (1.46) |
Redemption fees added to paid in capital E | - J | .01 | .01 | .01 | .02 | .01 |
Net asset value, end of period | $ 31.86 | $ 30.58 | $ 24.19 | $ 14.76 | $ 35.48 | $ 21.39 |
Total Return B, C, D | 10.74% | 27.58% | 64.21% | (54.02)% | 79.05% | 37.02% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.15% A | 2.17% | 2.28% | 2.25% | 2.21% | 2.46% |
Expenses net of fee waivers, if any | 2.15% A | 2.17% | 2.25% | 2.25% | 2.21% | 2.25% |
Expenses net of all reductions | 2.11% A | 2.13% | 2.16% | 2.16% | 2.13% | 2.14% |
Net investment income (loss) | (.60)% A | .12% | .19% | (.02)% | .14% | .33% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 99,566 | $ 87,089 | $ 59,491 | $ 30,577 | $ 82,070 | $ 33,047 |
Portfolio turnover rate G | 124% A | 138% | 91% | 92% I | 66% | 77% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 33.80 | $ 26.58 | $ 16.07 | $ 38.25 | $ 22.84 | $ 17.97 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .07 | .34 | .26 | .27 | .34 | .27 |
Net realized and unrealized gain (loss) | 3.56 | 7.26 | 10.29 | (19.09) | 16.92 | 6.19 |
Total from investment operations | 3.63 | 7.60 | 10.55 | (18.82) | 17.26 | 6.46 |
Distributions from net investment income | (.29) | (.17) | (.05) | (.31) | (.19) | (.21) |
Distributions from net realized gain | (1.81) | (.22) | - | (3.06) | (1.68) | (1.39) |
Total distributions | (2.09) J | (.39) | (.05) | (3.37) | (1.87) | (1.60) |
Redemption fees added to paid in capital D | - I | .01 | .01 | .01 | .02 | .01 |
Net asset value, end of period | $ 35.34 | $ 33.80 | $ 26.58 | $ 16.07 | $ 38.25 | $ 22.84 |
Total Return B, C | 11.29% | 28.87% | 65.94% | (53.53)% | 80.97% | 38.28% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | 1.12% A | 1.14% | 1.25% | 1.20% | 1.16% | 1.41% |
Expenses net of fee waivers, if any | 1.12% A | 1.14% | 1.25% | 1.20% | 1.16% | 1.25% |
Expenses net of all reductions | 1.07% A | 1.10% | 1.16% | 1.11% | 1.08% | 1.14% |
Net investment income (loss) | .44% A | 1.16% | 1.18% | 1.03% | 1.20% | 1.33% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 63,902 | $ 45,042 | $ 23,888 | $ 5,933 | $ 16,300 | $ 5,086 |
Portfolio turnover rate F | 124% A | 138% | 91% | 92% H | 66% | 77% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H The portfolio turnover rate does not include the assets acquired in the merger.
I Amount represents less than $.01 per share.
J Total distributions of $2.09 per share is comprised of distributions from net investment income of $.288 and distributions from net realized gain of $1.805 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2011 (Unaudited)
1. Organization.
Fidelity Advisor Emerging Asia Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
Semiannual Report
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
(ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. 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.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, passive foreign investment companies (PFIC), capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 105,768,544 |
Gross unrealized depreciation | (8,095,804) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 97,672,740 |
Tax cost | $ 390,222,215 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update changes the wording used to describe the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. The update is effective during interim and annual periods beginning after December 15, 2011. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including futures contracts in order to meet its investment objectives. The strategy is to use derivatives to increase returns, to gain exposure to certain types of assets and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risks:
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 sell 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. The Fund's maximum risk of loss from counterparty credit risk is generally the aggregate unrealized appreciation and unpaid counterparty fees in excess of any collateral pledged by the counterparty to the Fund. Counterparty risk related to exchange-traded futures contracts is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market and to fluctuations in currency values.
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 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). Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
The underlying face amount at value of open futures contracts at period end, if any, is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments. The receivable and/or payable for the variation margin are reflected in the Statement of Assets and Liabilities.
Certain risks arise upon entering into futures contracts, including the risk that an illiquid market limits the ability to close out a futures contract prior to settlement date.
During the period the Fund recognized net realized gain (loss) of $(459,204) related to its investment in futures contracts. This amount is included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $297,915,348 and $268,786,633, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .71% of the Fund's average net assets.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. 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 FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 257,820 | $ 12,565 |
Class T | .25% | .25% | 163,024 | 1,901 |
Class B | .75% | .25% | 142,041 | 107,138 |
Class C | .75% | .25% | 469,282 | 121,086 |
| | | $ 1,032,167 | $ 242,690 |
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% to 1% for Class B, 1% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 81,909 |
Class T | 12,956 |
Class B* | 24,877 |
Class C* | 4,713 |
| $ 124,455 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
6. 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 | $ 255,063 | .25 |
Class T | 100,190 | .31 |
Class B | 42,790 | .30 |
Class C | 112,425 | .24 |
Institutional Class | 55,200 | .21 |
| $ 565,668 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $303 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily Loan
Balance | Weighted Average
Interest Rate | Interest
Expense |
Borrower | $ 5,882,286 | .44% | $ 1,005 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $765 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and 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 $50,416. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
Semiannual Report
9. Expense Reductions - continued
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class T | 1.75% - 1.90%* | $ 3,344 |
Class B | 2.25% - 2.40%* | 1,308 |
| | $ 4,652 |
* Expense limitation in effect at period end.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $97,015 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
From net investment income | | |
Class A | $ 1,195,290 | $ 615,994 |
Class T | 238,054 | 138,177 |
Class C | 129,641 | 55,860 |
Institutional Class | 411,224 | 161,513 |
Total | $ 1,974,209 | $ 971,544 |
From net realized gain | | |
Class A | $ 10,575,901 | $ 1,138,813 |
Class T | 3,522,015 | 399,983 |
Class B | 1,697,909 | 223,532 |
Class C | 5,318,244 | 558,596 |
Institutional Class | 2,577,289 | 211,506 |
Total | $ 23,691,358 | $ 2,532,430 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2011 | Year ended
October 31,
2010 | Six months ended April 30,
2011 | Year ended
October 31,
2010 |
Class A | | | | |
Shares sold | 1,434,652 | 2,066,420 | $ 46,599,760 | $ 59,859,672 |
Reinvestment of distributions | 309,671 | 54,021 | 9,819,659 | 1,525,557 |
Shares redeemed | (888,994) | (1,447,315) | (28,769,240) | (40,817,600) |
Net increase (decrease) | 855,329 | 673,126 | $ 27,650,179 | $ 20,567,629 |
Class T | | | | |
Shares sold | 296,857 | 516,790 | $ 9,457,000 | $ 14,594,570 |
Reinvestment of distributions | 118,524 | 18,968 | 3,673,045 | 524,658 |
Shares redeemed | (258,749) | (403,834) | (8,135,440) | (11,178,425) |
Net increase (decrease) | 156,632 | 131,924 | $ 4,994,605 | $ 3,940,803 |
Class B | | | | |
Shares sold | 47,939 | 202,362 | $ 1,460,434 | $ 5,365,940 |
Reinvestment of distributions | 44,891 | 6,691 | 1,329,672 | 177,369 |
Shares redeemed | (184,888) | (305,292) | (5,595,657) | (8,111,865) |
Net increase (decrease) | (92,058) | (96,239) | $ (2,805,551) | $ (2,568,556) |
Class C | | | | |
Shares sold | 670,928 | 996,034 | $ 20,318,182 | $ 27,112,281 |
Reinvestment of distributions | 152,906 | 18,926 | 4,496,965 | 499,282 |
Shares redeemed | (545,971) | (626,174) | (16,109,399) | (16,404,984) |
Net increase (decrease) | 277,863 | 388,786 | $ 8,705,748 | $ 11,206,579 |
Institutional Class | | | | |
Shares sold | 728,460 | 836,632 | $ 24,349,285 | $ 24,478,070 |
Reinvestment of distributions | 57,110 | 9,083 | 1,854,949 | 262,322 |
Shares redeemed | (309,834) | (411,905) | (10,152,091) | (11,804,448) |
Net increase (decrease) | 475,736 | 433,810 | $ 16,052,143 | $ 12,935,944 |
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 Investment Advisors (U.K.) Limited
FIL Investments (Japan) Limited
Fidelity Management & Research (Hong Kong) Limited
Fidelity Management & Research (Japan), Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
AEA-USAN-0611
1.784873.108
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Emerging Asia
Fund - Institutional Class
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense Ratio | Beginning
Account Value
November 1, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010 to April 30, 2011 |
Class A | 1.41% | | | |
Actual | | $ 1,000.00 | $ 1,111.10 | $ 7.38 |
HypotheticalA | | $ 1,000.00 | $ 1,017.80 | $ 7.05 |
Class T | 1.71% | | | |
Actual | | $ 1,000.00 | $ 1,109.40 | $ 8.94 |
HypotheticalA | | $ 1,000.00 | $ 1,016.31 | $ 8.55 |
Class B | 2.21% | | | |
Actual | | $ 1,000.00 | $ 1,106.80 | $ 11.54 |
HypotheticalA | | $ 1,000.00 | $ 1,013.84 | $ 11.04 |
Class C | 2.15% | | | |
Actual | | $ 1,000.00 | $ 1,107.40 | $ 11.23 |
HypotheticalA | | $ 1,000.00 | $ 1,014.13 | $ 10.74 |
Institutional Class | 1.12% | | | |
Actual | | $ 1,000.00 | $ 1,112.90 | $ 5.87 |
HypotheticalA | | $ 1,000.00 | $ 1,019.24 | $ 5.61 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Samsung Electronics Co. Ltd. | 4.1 | 3.7 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 3.3 | 2.5 |
Industrial & Commercial Bank of China Ltd. (H Shares) | 2.7 | 0.8 |
China Construction Bank Corp. (H Shares) | 2.1 | 2.5 |
CNOOC Ltd. | 1.9 | 1.9 |
Hyundai Motor Co. | 1.7 | 1.2 |
Keppel Corp. Ltd. | 1.7 | 1.3 |
LG Chemical Ltd. | 1.6 | 0.9 |
Fubon Financial Holding Co. Ltd. | 1.5 | 1.1 |
PetroChina Co. Ltd. (H Shares) | 1.5 | 0.0 |
| 22.1 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 30.6 | 32.0 |
Information Technology | 16.9 | 15.8 |
Industrials | 11.6 | 10.4 |
Materials | 10.4 | 8.3 |
Consumer Discretionary | 8.5 | 9.3 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011 | As of October 31, 2010 |
| Stocks 97.9% | | | Stocks 97.3% | |
| Short-Term
Investments and
Net Other Assets 2.1% | | | Short-Term
Investments and
Net Other Assets 2.7% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.9% |
| Shares | | Value |
Bermuda - 2.7% |
Cheung Kong Infrastructure Holdings Ltd. | 208,000 | | $ 1,013,713 |
China Yurun Food Group Ltd. | 417,000 | | 1,527,581 |
Cosco Pacific Ltd. | 782,000 | | 1,619,119 |
GOME Electrical Appliances Holdings Ltd. (a) | 3,227,000 | | 1,159,282 |
Great Eagle Holdings Ltd. | 70,000 | | 248,767 |
Huabao International Holdings Ltd. | 773,000 | | 1,146,616 |
Jardine Matheson Holdings Ltd. | 52,000 | | 2,496,000 |
Jinhui Shipping & Transportation Ltd. (a) | 129,000 | | 410,628 |
Noble Group Ltd. | 1,673,272 | | 3,048,402 |
PAX Global Technology Ltd. | 259,000 | | 94,045 |
SmarTone Telecommunications Holdings Ltd. | 452,000 | | 699,566 |
TOTAL BERMUDA | | 13,463,719 |
Canada - 0.3% |
Niko Resources Ltd. | 15,500 | | 1,309,825 |
Sino-Forest Corp. (a) | 7,400 | | 183,885 |
TOTAL CANADA | | 1,493,710 |
Cayman Islands - 4.2% |
Ajisen (China) Holdings Ltd. | 299,000 | | 596,745 |
Central China Real Estate Ltd. | 3,012,000 | | 833,833 |
Chaoda Modern Agriculture (Holdings) Ltd. | 3,564,000 | | 2,216,515 |
China Infrastructure Machinery Holdings Ltd. | 1,147,000 | | 846,260 |
China Shanshui Cement Group Ltd. | 994,000 | | 1,113,503 |
China ZhengTong Auto Services Holdings Ltd. | 393,000 | | 444,803 |
Country Garden Holdings Co. Ltd. | 3,946,000 | | 1,600,492 |
Global Dairy Holdings Ltd. | 484,000 | | 209,397 |
International Taifeng Holdings Ltd. | 1,524,000 | | 826,139 |
Kingboard Chemical Holdings Ltd. | 680,000 | | 3,725,584 |
KWG Property Holding Ltd. | 645,000 | | 465,917 |
Ming Fung Jewellery Group Ltd. | 1,030,000 | | 125,993 |
New World Department Store China Ltd. | 261,000 | | 227,854 |
Samson Holding Ltd. | 1,352,000 | | 302,909 |
Shenguan Holdings Group Ltd. | 662,000 | | 879,678 |
Shui On Land Ltd. | 1,734,445 | | 768,254 |
Spreadtrum Communications, Inc. ADR (a) | 41,500 | | 888,100 |
Suntech Power Holdings Co. Ltd. sponsored ADR (a)(d) | 135,400 | | 1,214,538 |
Trina Solar Ltd. (a)(d) | 47,500 | | 1,353,275 |
Xingda International Holdings Ltd. | 717,000 | | 827,205 |
Yingli Green Energy Holding Co. Ltd. ADR (a)(d) | 20,700 | | 259,371 |
Youyuan International Holdings Ltd. | 1,492,000 | | 864,504 |
TOTAL CAYMAN ISLANDS | | 20,590,869 |
Common Stocks - continued |
| Shares | | Value |
China - 16.7% |
Agricultural Bank China Ltd. (H Shares) | 7,426,000 | | $ 4,388,878 |
Air China Ltd. (H Shares) | 1,336,000 | | 1,352,119 |
Anhui Conch Cement Co. Ltd. (H Shares) | 531,000 | | 2,505,846 |
Anhui Expressway Co. Ltd. (H Shares) | 752,000 | | 629,386 |
Baidu.com, Inc. sponsored ADR (a) | 11,300 | | 1,678,276 |
Bank of China Ltd. (H Shares) | 5,430,000 | | 2,999,459 |
China Communications Construction Co. Ltd. (H Shares) | 1,904,000 | | 1,757,810 |
China Communications Services Corp. Ltd. (H Shares) | 1,960,000 | | 1,196,245 |
China Construction Bank Corp. (H Shares) | 10,933,000 | | 10,332,877 |
China Cosco Holdings Co. Ltd. (H Shares) (a) | 1,167,000 | | 1,120,974 |
China Metal Recycling (Holdings) Ltd. | 826,200 | | 1,146,806 |
China Minsheng Banking Corp. Ltd. (H Shares) | 5,809,500 | | 5,572,895 |
China Oilfield Services Ltd. (H Shares) | 1,098,000 | | 2,171,598 |
China Pacific Insurance Group Co. Ltd. (H Shares) | 517,200 | | 2,234,276 |
China Petroleum & Chemical Corp. (H Shares) | 4,816,000 | | 4,854,354 |
China Southern Airlines Ltd. (H Shares) (a) | 840,000 | | 440,687 |
China Telecom Corp. Ltd. (H Shares) | 5,984,000 | | 3,481,746 |
Focus Media Holding Ltd. ADR (a) | 34,200 | | 1,202,130 |
Great Wall Motor Co. Ltd. (H Shares) | 608,250 | | 1,090,203 |
Guangzhou R&F Properties Co. Ltd. (H Shares) | 778,400 | | 1,060,411 |
Harbin Power Equipment Co. Ltd. (H Shares) | 1,864,000 | | 1,797,685 |
Huaneng Power International, Inc. (H Shares) | 2,446,000 | | 1,350,842 |
Industrial & Commercial Bank of China Ltd. (H Shares) | 15,459,000 | | 13,077,737 |
PetroChina Co. Ltd. (H Shares) | 4,988,000 | | 7,240,535 |
Ping An Insurance Group Co. China Ltd. (H Shares) | 371,500 | | 4,039,655 |
Shenzhen Chiwan Wharf Holding Ltd. (B Shares) | 112,799 | | 185,474 |
Shenzhen Expressway Co. Ltd. (H Shares) | 1,340,000 | | 893,759 |
Sinotrans Ltd. (H Shares) | 3,637,000 | | 889,780 |
Tianneng Power International Ltd. | 278,000 | | 146,762 |
Zhongpin, Inc. (a)(d) | 39,300 | | 656,310 |
TOTAL CHINA | | 81,495,515 |
Hong Kong - 11.7% |
AIA Group Ltd. | 1,837,600 | | 6,187,405 |
BYD Electronic International Co. Ltd. | 547,500 | | 293,267 |
Cathay Pacific Airways Ltd. | 1,312,000 | | 3,273,961 |
China Overseas Land & Investment Ltd. | 1,510,000 | | 2,904,781 |
Citic Pacific Ltd. | 856,000 | | 2,557,099 |
CNOOC Ltd. | 3,747,500 | | 9,314,641 |
Dah Chong Hong Holdings Ltd. | 335,000 | | 383,040 |
First Pacific Co. Ltd. | 798,000 | | 750,087 |
Galaxy Entertainment Group Ltd. (a) | 126,000 | | 226,486 |
Common Stocks - continued |
| Shares | | Value |
Hong Kong - continued |
Giordano International Ltd. | 382,000 | | $ 275,938 |
Hang Lung Group Ltd. | 266,000 | | 1,791,303 |
Hong Kong Exchanges and Clearing Ltd. | 84,000 | | 1,916,588 |
Hongkong Land Holdings Ltd. | 585,000 | | 4,381,650 |
Hysan Development Co. Ltd. | 203,000 | | 947,523 |
New World Development Co. Ltd. | 1,095,000 | | 1,920,335 |
PCCW Ltd. | 7,391,000 | | 2,931,162 |
Power Assets Holdings Ltd. | 1,006,000 | | 7,040,174 |
Sino-Ocean Land Holdings Ltd. | 1,947,500 | | 1,105,864 |
Sinotruk Hong Kong Ltd. | 425,500 | | 352,835 |
SJM Holdings Ltd. | 629,000 | | 1,355,788 |
Swire Pacific Ltd. (A Shares) | 245,500 | | 3,749,057 |
Wharf Holdings Ltd. | 457,000 | | 3,342,338 |
TOTAL HONG KONG | | 57,001,322 |
India - 8.6% |
Apollo Tyres Ltd. | 455,823 | | 714,815 |
Axis Bank Ltd. | 69,200 | | 2,011,812 |
Bajaj Auto Ltd. | 49,700 | | 1,655,356 |
Bank of Baroda | 98,935 | | 2,072,930 |
Bank of India | 112,326 | | 1,160,190 |
Bharti Airtel Ltd. | 315,790 | | 2,711,919 |
Canara Bank | 125,531 | | 1,792,267 |
Dena Bank | 129,933 | | 312,098 |
Ess Dee Aluminium Ltd. | 87,436 | | 911,998 |
Grasim Industries Ltd. | 20,528 | | 1,194,542 |
HCL Infosystems Ltd. | 145,422 | | 364,910 |
Hindalco Industries Ltd. | 380,098 | | 1,855,613 |
ICSA (India) Ltd. | 186,602 | | 488,694 |
Idea Cellular Ltd. (a) | 431,913 | | 672,439 |
Indian Oil Corp. Ltd. | 198,190 | | 1,521,972 |
Indian Overseas Bank | 287,839 | | 992,201 |
Jubilant Industries Ltd. (a) | 5,873 | | 31,651 |
Mahindra & Mahindra Financial Services Ltd. | 84,060 | | 1,390,110 |
Oriental Bank of Commerce | 177,957 | | 1,389,516 |
Patni Computer Systems Ltd. | 158,817 | | 1,536,361 |
Piramal Healthcare Ltd. | 63,145 | | 654,065 |
Ramky Infrastructure Ltd. | 73,635 | | 484,605 |
Reliance Infrastructure Ltd. | 35,910 | | 535,546 |
Shree Renuka Sugars Ltd. | 232,620 | | 370,310 |
Shriram Transport Finance Co. Ltd. | 24,200 | | 423,739 |
Sintex Industries Ltd. | 172,960 | | 677,888 |
Common Stocks - continued |
| Shares | | Value |
India - continued |
State Bank of India | 40,481 | | $ 2,565,428 |
Sun TV Ltd. | 47,728 | | 460,078 |
Tata Consultancy Services Ltd. | 170,782 | | 4,498,295 |
Tata Motors Ltd. Class A | 89,521 | | 1,374,523 |
Tata Power Co. Ltd. | 41,259 | | 1,216,094 |
Titan Industries Ltd. | 12,572 | | 1,144,732 |
Tulip Telecom Ltd. | 123,038 | | 434,685 |
Welspun Gujarat Stahl Rohren Ltd. | 240,146 | | 1,039,430 |
Yes Bank Ltd. | 162,600 | | 1,121,170 |
Zee Learn Ltd. (a) | 35,117 | | 18,013 |
TOTAL INDIA | | 41,799,995 |
Indonesia - 3.4% |
PT Aneka Tambang Tbk | 877,500 | | 233,105 |
PT Astra International Tbk | 514,000 | | 3,370,053 |
PT Bank Rakyat Indonesia Tbk | 8,487,500 | | 6,392,391 |
PT BISI International Tbk (a) | 376,500 | | 73,418 |
PT Indofood Sukses Makmur Tbk | 3,024,000 | | 1,959,741 |
PT Indosat Tbk | 392,500 | | 245,198 |
PT Perusahaan Gas Negara Tbk Series B | 4,731,000 | | 2,209,718 |
PT Tower Bersama Infrastructure Tbk | 2,425,000 | | 686,669 |
PT XL Axiata Tbk | 1,552,500 | | 1,232,720 |
TOTAL INDONESIA | | 16,403,013 |
Japan - 0.0% |
Daikokutenbussan Co. Ltd. | 400 | | 13,071 |
SMC Corp. | 1,400 | | 255,714 |
TOTAL JAPAN | | 268,785 |
Korea (South) - 21.0% |
BS Financial Group, Inc. (a) | 333,090 | | 4,863,081 |
Cheil Worldwide, Inc. | 142,040 | | 1,834,489 |
CJ Corp. | 37,187 | | 2,812,081 |
Daegu Bank Co. Ltd. | 72,680 | | 1,217,568 |
Dongbu Insurance Co. Ltd. | 31,260 | | 1,492,054 |
Doosan Co. Ltd. | 15,093 | | 1,857,490 |
Doosan Construction & Engineering Co. Ltd. | 133,800 | | 641,138 |
Duksan Hi-Metal Co. Ltd. (a) | 43,555 | | 927,352 |
GS Holdings Corp. | 23,370 | | 1,957,524 |
Honam Petrochemical Corp. | 7,131 | | 2,522,711 |
Hyundai Department Store Co. Ltd. | 6,787 | | 997,247 |
Hyundai Heavy Industries Co. Ltd. | 14,335 | | 7,177,559 |
Hyundai Hysco Co. Ltd. | 32,160 | | 1,310,779 |
Common Stocks - continued |
| Shares | | Value |
Korea (South) - continued |
Hyundai Mobis | 15,284 | | $ 5,135,193 |
Hyundai Motor Co. | 36,543 | | 8,430,365 |
Hyundai Steel Co. | 34,900 | | 4,442,113 |
Industrial Bank of Korea | 234,770 | | 4,515,228 |
Kia Motors Corp. | 53,840 | | 3,874,866 |
Korea Investment Holdings Co. Ltd. | 20,080 | | 788,353 |
Korea Zinc Co. Ltd. | 4,609 | | 1,820,306 |
Kyeryong Construction Industrial Co. Ltd. | 11,900 | | 157,033 |
LG Chemical Ltd. | 15,477 | | 7,676,936 |
LIG Non-Life Insurance Co. Ltd. | 36,410 | | 901,305 |
Lotte Shopping Co. Ltd. | 5,245 | | 2,397,924 |
NHN Corp. (a) | 14,011 | | 2,786,463 |
Samsung Card Co. Ltd. | 28,541 | | 1,421,039 |
Samsung Electronics Co. Ltd. | 24,234 | | 20,253,576 |
SK Telecom Co. Ltd. | 47,531 | | 7,222,811 |
Sungwoo Hitech Co. Ltd. | 36,031 | | 730,062 |
TK Corp. (a) | 9,901 | | 223,780 |
TOTAL KOREA (SOUTH) | | 102,388,426 |
Malaysia - 1.7% |
AMMB Holdings Bhd | 1,138,900 | | 2,452,720 |
Axiata Group Bhd (a) | 1,470,100 | | 2,431,558 |
Glomac Bhd | 552,400 | | 346,823 |
Hong Leong Bank Bhd | 138,400 | | 485,860 |
Malayan Banking Bhd | 589,971 | | 1,742,530 |
RHB Capital Bhd | 267,700 | | 800,615 |
TOTAL MALAYSIA | | 8,260,106 |
Mauritius - 0.4% |
Golden Agri-Resources Ltd. | 3,739,000 | | 2,031,318 |
Philippines - 0.3% |
Aboitiz Power Corp. | 1,096,000 | | 807,822 |
Universal Robina Corp. | 822,000 | | 716,285 |
TOTAL PHILIPPINES | | 1,524,107 |
Singapore - 4.7% |
Avago Technologies Ltd. | 13,500 | | 451,710 |
China Minzhong Food Corp. Ltd. | 267,000 | | 394,812 |
City Developments Ltd. | 220,000 | | 2,128,018 |
First Resources Ltd. | 999,000 | | 1,126,278 |
Keppel Corp. Ltd. | 853,600 | | 8,298,550 |
SembCorp Industries Ltd. | 965,000 | | 4,257,179 |
Common Stocks - continued |
| Shares | | Value |
Singapore - continued |
SembCorp Marine Ltd. | 656,000 | | $ 3,038,699 |
Yangzijiang Shipbuilding Holdings Ltd. | 762,000 | | 1,126,768 |
Yanlord Land Group Ltd. | 1,816,000 | | 2,151,219 |
TOTAL SINGAPORE | | 22,973,233 |
Taiwan - 16.4% |
Advanced Semiconductor Engineering, Inc. | 2,607,000 | | 3,048,441 |
ASUSTeK Computer, Inc. | 199,000 | | 1,789,855 |
Far East Department Stores Co. Ltd. | 419,000 | | 739,111 |
Farglory Land Development Co. Ltd. | 330,000 | | 751,229 |
Formosa Chemicals & Fibre Corp. | 1,628,000 | | 6,555,133 |
Formosa Plastics Corp. | 1,770,000 | | 7,219,453 |
Foxconn Technology Co. Ltd. | 247,000 | | 1,179,676 |
Fubon Financial Holding Co. Ltd. | 5,057,549 | | 7,405,162 |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 758,000 | | 2,867,108 |
HTC Corp. | 148,750 | | 6,741,328 |
Huaku Development Co. Ltd. | 325,971 | | 955,697 |
Insyde Software Corp. | 98,195 | | 484,385 |
King Slide Works Co. Ltd. | 102,850 | | 530,654 |
Nan Ya Plastics Corp. | 1,204,000 | | 3,685,243 |
Quanta Computer, Inc. | 862,000 | | 1,697,856 |
Siliconware Precision Industries Co. Ltd. | 1,366,000 | | 1,828,824 |
TaiChung Business Bank (a) | 788,000 | | 329,650 |
Taishin Financial Holdings Co. Ltd. | 10,966,890 | | 6,442,116 |
Taiwan Cement Corp. | 1,471,424 | | 2,151,865 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 6,326,393 | | 16,336,603 |
Tripod Technology Corp. | 639,000 | | 3,018,459 |
Unified-President Enterprises Corp. | 1,099,000 | | 1,578,484 |
United Microelectronics Corp. | 4,989,000 | | 2,599,785 |
TOTAL TAIWAN | | 79,936,117 |
Thailand - 5.3% |
Advanced Info Service PCL (For. Reg.) | 486,500 | | 1,507,075 |
Asian Property Development PCL (For. Reg.) | 3,010,900 | | 635,254 |
Bangkok Bank Public Co. Ltd.: | | | |
(For. Reg.) | 295,500 | | 1,682,351 |
NVDR | 62,100 | | 353,550 |
Banpu PCL (For. Reg.) | 198,700 | | 4,964,173 |
BEC World PCL (For. Reg.) | 1,397,700 | | 1,614,891 |
Bumrungrad Hospital PCL (For. Reg.) | 173,400 | | 225,025 |
Charoen Pokphand Foods PCL (For. Reg.) | 2,027,100 | | 2,002,661 |
Electricity Generating PCL (For. Reg.) | 661,400 | | 2,098,716 |
Common Stocks - continued |
| Shares | | Value |
Thailand - continued |
LPN Development PCL (For. Reg.) | 1,772,400 | | $ 635,120 |
National Finance PCL (For. Reg.) | 1,128,300 | | 1,152,483 |
PTT PCL (For. Reg.) | 214,500 | | 2,693,821 |
Siam Cement PCL: | | | |
(For. Reg.) | 98,200 | | 1,361,514 |
NVDR unit | 7,800 | | 97,957 |
Siam Commercial Bank PCL (For. Reg.) | 669,400 | | 2,600,482 |
Siam Makro PCL (For. Reg.) | 191,500 | | 1,061,395 |
Supalai PCL (For. Reg.) | 1,471,800 | | 591,480 |
Total Access Communication PCL unit | 263,900 | | 446,314 |
TOTAL THAILAND | | 25,724,262 |
United Kingdom - 0.3% |
HSBC Holdings PLC (Hong Kong) | 143,228 | | 1,558,593 |
United States of America - 0.2% |
China Natural Gas, Inc. (a)(d) | 13,300 | | 70,623 |
Cognizant Technology Solutions Corp. Class A (a) | 7,700 | | 638,330 |
SORL Auto Parts, Inc. (a)(d) | 45,900 | | 236,385 |
TOTAL UNITED STATES OF AMERICA | | 945,338 |
TOTAL COMMON STOCKS (Cost $379,489,700) | 477,858,428 |
Money Market Funds - 2.0% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 6,990,757 | | 6,990,757 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 3,045,770 | | 3,045,770 |
TOTAL MONEY MARKET FUNDS (Cost $10,036,527) | 10,036,527 |
TOTAL INVESTMENT PORTFOLIO - 99.9% (Cost $389,526,227) | | 487,894,955 |
NET OTHER ASSETS (LIABILITIES) - 0.1% | | 419,232 |
NET ASSETS - 100% | $ 488,314,187 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 6,052 |
Fidelity Securities Lending Cash Central Fund | 50,416 |
Total | $ 56,468 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Korea (South) | $ 102,388,426 | $ 95,165,615 | $ 7,222,811 | $ - |
China | 81,495,515 | 64,127,351 | 17,368,164 | - |
Taiwan | 79,936,117 | 56,122,464 | 23,813,653 | - |
Hong Kong | 57,001,322 | 47,686,681 | 9,314,641 | - |
India | 41,799,995 | 36,684,064 | 5,115,931 | - |
Thailand | 25,724,262 | 25,724,262 | - | - |
Singapore | 22,973,233 | 22,973,233 | - | - |
Cayman Islands | 20,590,869 | 20,590,869 | - | - |
Indonesia | 16,403,013 | 16,403,013 | - | - |
Other | 29,545,676 | 27,232,438 | 2,313,238 | - |
Money Market Funds | 10,036,527 | 10,036,527 | - | - |
Total Investments in Securities: | $ 487,894,955 | $ 422,746,517 | $ 65,148,438 | $ - |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Beginning Balance | $ 10,299 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | (10,299) |
Ending Balance | $ - |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at April 30, 2011 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $3,006,668) - See accompanying schedule: Unaffiliated issuers (cost $379,489,700) | $ 477,858,428 | |
Fidelity Central Funds (cost $10,036,527) | 10,036,527 | |
Total Investments (cost $389,526,227) | | $ 487,894,955 |
Foreign currency held at value (cost $85,442) | | 85,650 |
Receivable for investments sold | | 1,133,533 |
Receivable for fund shares sold | | 1,674,048 |
Dividends receivable | | 1,637,579 |
Distributions receivable from Fidelity Central Funds | | 6,011 |
Prepaid expenses | | 368 |
Other receivables | | 274,658 |
Total assets | | 492,706,802 |
| | |
Liabilities | | |
Payable for investments purchased | $ 22,454 | |
Payable for fund shares redeemed | 661,291 | |
Accrued management fee | 281,259 | |
Distribution and service plan fees payable | 179,169 | |
Other affiliated payables | 114,180 | |
Other payables and accrued expenses | 88,492 | |
Collateral on securities loaned, at value | 3,045,770 | |
Total liabilities | | 4,392,615 |
| | |
Net Assets | | $ 488,314,187 |
Net Assets consist of: | | |
Paid in capital | | $ 363,338,431 |
Accumulated net investment loss | | (159,286) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 26,747,236 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 98,387,806 |
Net Assets | | $ 488,314,187 |
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, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($227,239,171 ÷ 6,596,402 shares) | | $ 34.45 |
| | |
Maximum offering price per share (100/94.25 of $34.45) | | $ 36.55 |
Class T:
Net Asset Value and redemption price per share ($69,637,195 ÷ 2,070,469 shares) | | $ 33.63 |
| | |
Maximum offering price per share (100/96.50 of $33.63) | | $ 34.85 |
Class B:
Net Asset Value and offering price per share ($27,969,746 ÷ 872,001 shares)A | | $ 32.08 |
| | |
Class C:
Net Asset Value and offering price per share ($99,565,612 ÷ 3,125,538 shares)A | | $ 31.86 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($63,902,463 ÷ 1,808,398 shares) | | $ 35.34 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 3,682,976 |
Interest | | 26,248 |
Income from Fidelity Central Funds | | 56,468 |
Income before foreign taxes withheld | | 3,765,692 |
Less foreign taxes withheld | | (390,035) |
Total income | | 3,375,657 |
| | |
Expenses | | |
Management fee | $ 1,580,911 | |
Transfer agent fees | 565,668 | |
Distribution and service plan fees | 1,032,167 | |
Accounting and security lending fees | 116,091 | |
Custodian fees and expenses | 201,900 | |
Independent trustees' compensation | 1,091 | |
Registration fees | 87,321 | |
Audit | 46,446 | |
Legal | 756 | |
Interest | 1,005 | |
Miscellaneous | 1,977 | |
Total expenses before reductions | 3,635,333 | |
Expense reductions | (101,667) | 3,533,666 |
Net investment income (loss) | | (158,009) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 28,543,661 | |
Foreign currency transactions | 43,115 | |
Futures contracts | (459,204) | |
Total net realized gain (loss) | | 28,127,572 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 18,729,395 | |
Assets and liabilities in foreign currencies | 6,252 | |
Total change in net unrealized appreciation (depreciation) | | 18,735,647 |
Net gain (loss) | | 46,863,219 |
Net increase (decrease) in net assets resulting from operations | | $ 46,705,210 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (158,009) | $ 2,119,167 |
Net realized gain (loss) | 28,127,572 | 58,114,163 |
Change in net unrealized appreciation (depreciation) | 18,735,647 | 23,767,257 |
Net increase (decrease) in net assets resulting
from operations | 46,705,210 | 84,000,587 |
Distributions to shareholders from net investment income | (1,974,209) | (971,544) |
Distributions to shareholders from net realized gain | (23,691,358) | (2,532,430) |
Total distributions | (25,665,567) | (3,503,974) |
Share transactions - net increase (decrease) | 54,597,124 | 46,082,399 |
Redemption fees | 60,338 | 86,566 |
Total increase (decrease) in net assets | 75,697,105 | 126,665,578 |
| | |
Net Assets | | |
Beginning of period | 412,617,082 | 285,951,504 |
End of period (including accumulated net investment loss of $159,286 and undistributed net investment income of $1,972,932, respectively) | $ 488,314,187 | $ 412,617,082 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 32.97 | $ 25.96 | $ 15.74 | $ 37.55 | $ 22.48 | $ 17.70 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .25 | .19 | .19 | .24 | .22 |
Net realized and unrealized gain (loss) | 3.47 | 7.09 | 10.07 | (18.72) | 16.64 | 6.10 |
Total from investment operations | 3.49 | 7.34 | 10.26 | (18.53) | 16.88 | 6.32 |
Distributions from net investment income | (.20) | (.12) | (.05) | (.23) | (.15) | (.16) |
Distributions from net realized gain | (1.81) | (.22) | - | (3.06) | (1.68) | (1.39) |
Total distributions | (2.01) | (.34) | (.05) | (3.29) | (1.83) | (1.55) |
Redemption fees added to paid in capital E | - J | .01 | .01 | .01 | .02 | .01 |
Net asset value, end of period | $ 34.45 | $ 32.97 | $ 25.96 | $ 15.74 | $ 37.55 | $ 22.48 |
Total Return B, C, D | 11.11% | 28.53% | 65.43% | (53.66)% | 80.43% | 38.02% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.41% A | 1.44% | 1.54% | 1.50% | 1.47% | 1.73% |
Expenses net of fee waivers, if any | 1.41% A | 1.44% | 1.50% | 1.50% | 1.47% | 1.50% |
Expenses net of all reductions | 1.37% A | 1.40% | 1.41% | 1.41% | 1.40% | 1.39% |
Net investment income (loss) | .15% A | .86% | .94% | .73% | .88% | 1.08% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 227,239 | $ 189,255 | $ 131,564 | $ 71,722 | $ 152,630 | $ 55,790 |
Portfolio turnover rate G | 124% A | 138% | 91% | 92% I | 66% | 77% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 32.20 | $ 25.40 | $ 15.43 | $ 36.88 | $ 22.13 | $ 17.45 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | .15 | .14 | .12 | .16 | .17 |
Net realized and unrealized gain (loss) | 3.38 | 6.94 | 9.86 | (18.38) | 16.37 | 6.01 |
Total from investment operations | 3.36 | 7.09 | 10.00 | (18.26) | 16.53 | 6.18 |
Distributions from net investment income | (.12) | (.08) | (.04) | (.14) | (.12) | (.12) |
Distributions from net realized gain | (1.81) | (.22) | - | (3.06) | (1.68) | (1.39) |
Total distributions | (1.93) | (.30) | (.04) | (3.20) | (1.80) | (1.51) |
Redemption fees added to paid in capital E | - J | .01 | .01 | .01 | .02 | .01 |
Net asset value, end of period | $ 33.63 | $ 32.20 | $ 25.40 | $ 15.43 | $ 36.88 | $ 22.13 |
Total Return B, C, D | 10.94% | 28.13% | 65.06% | (53.79)% | 79.98% | 37.69% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.72% A | 1.74% | 1.84% | 1.80% | 1.79% | 2.07% |
Expenses net of fee waivers, if any | 1.71% A | 1.74% | 1.75% | 1.75% | 1.75% | 1.75% |
Expenses net of all reductions | 1.67% A | 1.70% | 1.66% | 1.66% | 1.67% | 1.64% |
Net investment income (loss) | (.16)% A | .55% | .69% | .48% | .61% | .83% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 69,637 | $ 61,620 | $ 45,259 | $ 25,205 | $ 64,813 | $ 28,850 |
Portfolio turnover rate G | 124% A | 138% | 91% | 92% I | 66% | 77% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 30.72 | $ 24.29 | $ 14.82 | $ 35.55 | $ 21.42 | $ 16.94 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.10) | .02 | .04 | (.01) | .03 | .06 |
Net realized and unrealized gain (loss) | 3.23 | 6.61 | 9.45 | (17.68) | 15.79 | 5.84 |
Total from investment operations | 3.13 | 6.63 | 9.49 | (17.69) | 15.82 | 5.90 |
Distributions from net investment income | - | - | (.03) | - | (.03) | (.04) |
Distributions from net realized gain | (1.77) | (.21) | - | (3.05) | (1.68) | (1.39) |
Total distributions | (1.77) | (.21) | (.03) | (3.05) | (1.71) | (1.43) |
Redemption fees added to paid in capital E | - J | .01 | .01 | .01 | .02 | .01 |
Net asset value, end of period | $ 32.08 | $ 30.72 | $ 24.29 | $ 14.82 | $ 35.55 | $ 21.42 |
Total Return B,C,D | 10.68% | 27.48% | 64.23% | (54.01)% | 79.01% | 36.99% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.22% A | 2.24% | 2.32% | 2.29% | 2.28% | 2.59% |
Expenses net of fee waivers, if any | 2.21% A | 2.24% | 2.25% | 2.25% | 2.25% | 2.25% |
Expenses net of all reductions | 2.16% A | 2.20% | 2.16% | 2.16% | 2.17% | 2.14% |
Net investment income (loss) | (.65)% A | .06% | .19% | (.02)% | .11% | .33% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 27,970 | $ 29,611 | $ 25,750 | $ 17,040 | $ 40,775 | $ 18,985 |
Portfolio turnover rate G | 124% A | 138% | 91% | 92% I | 66% | 77% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 30.58 | $ 24.19 | $ 14.76 | $ 35.48 | $ 21.39 | $ 16.94 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.09) | .03 | .04 | - J | .04 | .06 |
Net realized and unrealized gain (loss) | 3.22 | 6.59 | 9.41 | (17.63) | 15.76 | 5.84 |
Total from investment operations | 3.13 | 6.62 | 9.45 | (17.63) | 15.80 | 5.90 |
Distributions from net investment income | (.04) | (.02) | (.03) | (.04) | (.05) | (.07) |
Distributions from net realized gain | (1.81) | (.22) | - | (3.06) | (1.68) | (1.39) |
Total distributions | (1.85) | (.24) | (.03) | (3.10) | (1.73) | (1.46) |
Redemption fees added to paid in capital E | - J | .01 | .01 | .01 | .02 | .01 |
Net asset value, end of period | $ 31.86 | $ 30.58 | $ 24.19 | $ 14.76 | $ 35.48 | $ 21.39 |
Total Return B, C, D | 10.74% | 27.58% | 64.21% | (54.02)% | 79.05% | 37.02% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.15% A | 2.17% | 2.28% | 2.25% | 2.21% | 2.46% |
Expenses net of fee waivers, if any | 2.15% A | 2.17% | 2.25% | 2.25% | 2.21% | 2.25% |
Expenses net of all reductions | 2.11% A | 2.13% | 2.16% | 2.16% | 2.13% | 2.14% |
Net investment income (loss) | (.60)% A | .12% | .19% | (.02)% | .14% | .33% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 99,566 | $ 87,089 | $ 59,491 | $ 30,577 | $ 82,070 | $ 33,047 |
Portfolio turnover rate G | 124% A | 138% | 91% | 92% I | 66% | 77% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I The portfolio turnover rate does not include the assets acquired in the merger.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 33.80 | $ 26.58 | $ 16.07 | $ 38.25 | $ 22.84 | $ 17.97 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .07 | .34 | .26 | .27 | .34 | .27 |
Net realized and unrealized gain (loss) | 3.56 | 7.26 | 10.29 | (19.09) | 16.92 | 6.19 |
Total from investment operations | 3.63 | 7.60 | 10.55 | (18.82) | 17.26 | 6.46 |
Distributions from net investment income | (.29) | (.17) | (.05) | (.31) | (.19) | (.21) |
Distributions from net realized gain | (1.81) | (.22) | - | (3.06) | (1.68) | (1.39) |
Total distributions | (2.09) J | (.39) | (.05) | (3.37) | (1.87) | (1.60) |
Redemption fees added to paid in capital D | - I | .01 | .01 | .01 | .02 | .01 |
Net asset value, end of period | $ 35.34 | $ 33.80 | $ 26.58 | $ 16.07 | $ 38.25 | $ 22.84 |
Total Return B, C | 11.29% | 28.87% | 65.94% | (53.53)% | 80.97% | 38.28% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | 1.12% A | 1.14% | 1.25% | 1.20% | 1.16% | 1.41% |
Expenses net of fee waivers, if any | 1.12% A | 1.14% | 1.25% | 1.20% | 1.16% | 1.25% |
Expenses net of all reductions | 1.07% A | 1.10% | 1.16% | 1.11% | 1.08% | 1.14% |
Net investment income (loss) | .44% A | 1.16% | 1.18% | 1.03% | 1.20% | 1.33% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 63,902 | $ 45,042 | $ 23,888 | $ 5,933 | $ 16,300 | $ 5,086 |
Portfolio turnover rate F | 124% A | 138% | 91% | 92% H | 66% | 77% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H The portfolio turnover rate does not include the assets acquired in the merger.
I Amount represents less than $.01 per share.
J Total distributions of $2.09 per share is comprised of distributions from net investment income of $.288 and distributions from net realized gain of $1.805 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2011 (Unaudited)
1. Organization.
Fidelity Advisor Emerging Asia Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
Semiannual Report
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
(ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. 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.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, passive foreign investment companies (PFIC), capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 105,768,544 |
Gross unrealized depreciation | (8,095,804) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 97,672,740 |
Tax cost | $ 390,222,215 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update changes the wording used to describe the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. The update is effective during interim and annual periods beginning after December 15, 2011. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including futures contracts in order to meet its investment objectives. The strategy is to use derivatives to increase returns, to gain exposure to certain types of assets and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risks:
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 sell 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. The Fund's maximum risk of loss from counterparty credit risk is generally the aggregate unrealized appreciation and unpaid counterparty fees in excess of any collateral pledged by the counterparty to the Fund. Counterparty risk related to exchange-traded futures contracts is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market and to fluctuations in currency values.
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 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). Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
The underlying face amount at value of open futures contracts at period end, if any, is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments. The receivable and/or payable for the variation margin are reflected in the Statement of Assets and Liabilities.
Certain risks arise upon entering into futures contracts, including the risk that an illiquid market limits the ability to close out a futures contract prior to settlement date.
During the period the Fund recognized net realized gain (loss) of $(459,204) related to its investment in futures contracts. This amount is included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $297,915,348 and $268,786,633, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .71% of the Fund's average net assets.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. 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 FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 257,820 | $ 12,565 |
Class T | .25% | .25% | 163,024 | 1,901 |
Class B | .75% | .25% | 142,041 | 107,138 |
Class C | .75% | .25% | 469,282 | 121,086 |
| | | $ 1,032,167 | $ 242,690 |
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% to 1% for Class B, 1% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 81,909 |
Class T | 12,956 |
Class B* | 24,877 |
Class C* | 4,713 |
| $ 124,455 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
6. 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 | $ 255,063 | .25 |
Class T | 100,190 | .31 |
Class B | 42,790 | .30 |
Class C | 112,425 | .24 |
Institutional Class | 55,200 | .21 |
| $ 565,668 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $303 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily Loan
Balance | Weighted Average
Interest Rate | Interest
Expense |
Borrower | $ 5,882,286 | .44% | $ 1,005 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $765 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and 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 $50,416. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
Semiannual Report
9. Expense Reductions - continued
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class T | 1.75% - 1.90%* | $ 3,344 |
Class B | 2.25% - 2.40%* | 1,308 |
| | $ 4,652 |
* Expense limitation in effect at period end.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $97,015 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
From net investment income | | |
Class A | $ 1,195,290 | $ 615,994 |
Class T | 238,054 | 138,177 |
Class C | 129,641 | 55,860 |
Institutional Class | 411,224 | 161,513 |
Total | $ 1,974,209 | $ 971,544 |
From net realized gain | | |
Class A | $ 10,575,901 | $ 1,138,813 |
Class T | 3,522,015 | 399,983 |
Class B | 1,697,909 | 223,532 |
Class C | 5,318,244 | 558,596 |
Institutional Class | 2,577,289 | 211,506 |
Total | $ 23,691,358 | $ 2,532,430 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2011 | Year ended
October 31,
2010 | Six months ended April 30,
2011 | Year ended
October 31,
2010 |
Class A | | | | |
Shares sold | 1,434,652 | 2,066,420 | $ 46,599,760 | $ 59,859,672 |
Reinvestment of distributions | 309,671 | 54,021 | 9,819,659 | 1,525,557 |
Shares redeemed | (888,994) | (1,447,315) | (28,769,240) | (40,817,600) |
Net increase (decrease) | 855,329 | 673,126 | $ 27,650,179 | $ 20,567,629 |
Class T | | | | |
Shares sold | 296,857 | 516,790 | $ 9,457,000 | $ 14,594,570 |
Reinvestment of distributions | 118,524 | 18,968 | 3,673,045 | 524,658 |
Shares redeemed | (258,749) | (403,834) | (8,135,440) | (11,178,425) |
Net increase (decrease) | 156,632 | 131,924 | $ 4,994,605 | $ 3,940,803 |
Class B | | | | |
Shares sold | 47,939 | 202,362 | $ 1,460,434 | $ 5,365,940 |
Reinvestment of distributions | 44,891 | 6,691 | 1,329,672 | 177,369 |
Shares redeemed | (184,888) | (305,292) | (5,595,657) | (8,111,865) |
Net increase (decrease) | (92,058) | (96,239) | $ (2,805,551) | $ (2,568,556) |
Class C | | | | |
Shares sold | 670,928 | 996,034 | $ 20,318,182 | $ 27,112,281 |
Reinvestment of distributions | 152,906 | 18,926 | 4,496,965 | 499,282 |
Shares redeemed | (545,971) | (626,174) | (16,109,399) | (16,404,984) |
Net increase (decrease) | 277,863 | 388,786 | $ 8,705,748 | $ 11,206,579 |
Institutional Class | | | | |
Shares sold | 728,460 | 836,632 | $ 24,349,285 | $ 24,478,070 |
Reinvestment of distributions | 57,110 | 9,083 | 1,854,949 | 262,322 |
Shares redeemed | (309,834) | (411,905) | (10,152,091) | (11,804,448) |
Net increase (decrease) | 475,736 | 433,810 | $ 16,052,143 | $ 12,935,944 |
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 Investment Advisors (U.K.) Limited
FIL Investments (Japan) Limited
Fidelity Management & Research (Hong Kong) Limited
Fidelity Management & Research (Japan), Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
AEAI-USAN-0611
1.784874.108
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Emerging Markets
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense Ratio | Beginning
Account Value
November 1, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010 to
April 30, 2011 |
Class A | 1.56% | | | |
Actual | | $ 1,000.00 | $ 1,095.80 | $ 8.11 |
HypotheticalA | | $ 1,000.00 | $ 1,017.06 | $ 7.80 |
Class T | 1.81% | | | |
Actual | | $ 1,000.00 | $ 1,094.60 | $ 9.40 |
HypotheticalA | | $ 1,000.00 | $ 1,015.82 | $ 9.05 |
Class B | 2.31% | | | |
Actual | | $ 1,000.00 | $ 1,091.70 | $ 11.98 |
HypotheticalA | | $ 1,000.00 | $ 1,013.34 | $ 11.53 |
Class C | 2.30% | | | |
Actual | | $ 1,000.00 | $ 1,091.60 | $ 11.93 |
HypotheticalA | | $ 1,000.00 | $ 1,013.39 | $ 11.48 |
Institutional Class | 1.23% | | | |
Actual | | $ 1,000.00 | $ 1,097.50 | $ 6.40 |
HypotheticalA | | $ 1,000.00 | $ 1,018.70 | $ 6.16 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
OAO Gazprom sponsored ADR (Russia, Oil, Gas & Consumable Fuels) | 2.5 | 0.0 |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductors & Semiconductor Equipment) | 2.5 | 1.9 |
Petroleo Brasileiro SA - Petrobras (PN) (non-vtg) (Brazil, Oil, Gas & Consumable Fuel) | 2.1 | 1.9 |
Vale SA (PN-A) sponsored ADR (Brazil, Metals & Mining) | 2.0 | 1.9 |
Taiwan Semiconductor Manufacturing Co Ltd. (Taiwan, Semiconductors & Semiconductors Equipment) | 1.9 | 0.5 |
| 11.0 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 24.1 | 26.0 |
Materials | 16.2 | 15.8 |
Energy | 15.2 | 13.2 |
Information Technology | 13.4 | 9.7 |
Consumer Discretionary | 8.3 | 10.6 |
Top Five Countries as of April 30, 2011 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
Korea (South) | 16.7 | 11.8 |
Brazil | 14.4 | 13.4 |
Taiwan | 10.6 | 6.9 |
Russia | 8.9 | 7.9 |
China | 8.7 | 8.0 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011 | As of October 31, 2010 |
| Stocks 97.9% | | | Stocks 98.1% | |
| Short-Term
Investments and
Net Other Assets 2.1% | | | Short-Term
Investments and
Net Other Assets 1.9% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.9% |
| Shares | | Value |
Australia - 0.0% |
Extract Resources Ltd. (a) | 1,994 | | $ 14,605 |
Austria - 0.3% |
Erste Bank AG (d) | 48,275 | | 2,439,748 |
Bailiwick of Jersey - 0.5% |
Randgold Resources Ltd. sponsored ADR | 28,000 | | 2,423,960 |
West China Cement Ltd. (a) | 3,636,000 | | 1,498,165 |
TOTAL BAILIWICK OF JERSEY | | 3,922,125 |
Bermuda - 1.9% |
Alliance Oil Co. Ltd. (depositary receipt) (a)(d) | 75,100 | | 1,488,704 |
Central European Media Enterprises Ltd. Class A (a) | 32,300 | | 739,993 |
Cheung Kong Infrastructure Holdings Ltd. | 523,000 | | 2,548,904 |
China Glass Holdings Ltd. (a) | 692,000 | | 400,963 |
China Yurun Food Group Ltd. | 986,000 | | 3,611,977 |
GP Investments, Ltd. (depositary receipt) (a) | 259,238 | | 1,084,209 |
Great Eagle Holdings Ltd. | 206,000 | | 732,086 |
Orient Overseas International Ltd. | 359,500 | | 2,744,982 |
TOTAL BERMUDA | | 13,351,818 |
Brazil - 14.4% |
Arezzo Industria e Comercio SA | 12,700 | | 196,882 |
Banco Bradesco SA (PN) sponsored ADR (d) | 530,190 | | 10,725,744 |
Banco do Estado do Rio Grande do Sul SA | 175,800 | | 2,111,879 |
Brasil Foods SA | 188,800 | | 3,783,680 |
Brasil Insurance Participacoes e Administracao SA | 1,400 | | 1,761,902 |
Cia Hering SA | 115,800 | | 2,506,191 |
Companhia Brasileira de Distribuicao Grupo Pao de Acucar sponsored ADR (d) | 48,800 | | 2,218,448 |
Companhia de Bebidas das Americas (AmBev) (PN) sponsored ADR | 210,705 | | 6,864,769 |
Companhia de Saneamento Basico do Estado de Sao Paulo (SABESP) | 92,100 | | 2,667,639 |
Eletropaulo Metropolitana SA (PN-B) | 147,700 | | 3,595,570 |
Estacio Participacoes SA | 79,900 | | 1,168,054 |
Even Construtora e Incorporadora SA | 167,400 | | 920,365 |
Itau Unibanco Banco Multiplo SA sponsored ADR | 486,900 | | 11,563,875 |
Light SA | 108,600 | | 1,829,212 |
Marcopolo SA (PN) | 153,700 | | 687,757 |
Mills Estruturas e Servicos de Engenharia SA | 29,000 | | 396,301 |
OGX Petroleo e Gas Participacoes SA (a) | 610,900 | | 6,558,254 |
PDG Realty SA Empreendimentos e Participacoes | 417,600 | | 2,452,567 |
Common Stocks - continued |
| Shares | | Value |
Brazil - continued |
Petroleo Brasileiro SA - Petrobras: | | | |
(ON) sponsored ADR | 17,750 | | $ 662,608 |
(PN) (non-vtg.) | 209,100 | | 3,402,377 |
(PN) sponsored ADR (non-vtg.) | 350,610 | | 11,699,856 |
SLC Agricola SA | 7,000 | | 88,095 |
Tecnisa SA | 118,800 | | 931,794 |
Tegma Gestao Logistica | 104,900 | | 1,798,229 |
TIM Participacoes SA sponsored ADR (non-vtg.) (d) | 117,200 | | 5,529,496 |
Ultrapar Participacoes SA | 51,200 | | 893,307 |
Vale SA (PN-A) sponsored ADR | 482,800 | | 14,435,720 |
Vivo Participacoes SA sponsored ADR | 51,698 | | 2,161,493 |
TOTAL BRAZIL | | 103,612,064 |
British Virgin Islands - 0.4% |
Arcos Dorados Holdings, Inc. | 48,000 | | 1,057,440 |
Mail.ru Group Ltd.: | | | |
GDR (a)(e) | 53,300 | | 1,636,310 |
GDR (Reg. S) (a) | 5,900 | | 181,130 |
TOTAL BRITISH VIRGIN ISLANDS | | 2,874,880 |
Canada - 1.2% |
Carpathian Gold, Inc. (a) | 126,500 | | 58,162 |
Eldorado Gold Corp. | 183,185 | | 3,409,669 |
First Quantum Minerals Ltd. | 21,800 | | 3,106,748 |
SouthGobi Energy Resources Ltd. (a) | 24,400 | | 306,386 |
Uranium One, Inc. | 336,100 | | 1,399,677 |
TOTAL CANADA | | 8,280,642 |
Cayman Islands - 3.7% |
Belle International Holdings Ltd. | 86,000 | | 167,874 |
Central China Real Estate Ltd. | 1,297,000 | | 359,058 |
China Shanshui Cement Group Ltd. | 3,944,000 | | 4,418,166 |
Country Garden Holdings Co. Ltd. | 3,081,000 | | 1,249,649 |
Eurasia Drilling Co. Ltd. GDR (Reg. S) | 90,963 | | 3,065,453 |
EVA Precision Industrial Holdings Ltd. | 2,398,000 | | 2,053,320 |
Gourmet Master Co. Ltd. | 37,000 | | 386,962 |
Kaisa Group Holdings Ltd. (a) | 991,000 | | 401,948 |
Kingboard Chemical Holdings Ltd. | 655,000 | | 3,588,614 |
Melco PBL Entertainment (Macau) Ltd. sponsored ADR (a) | 130,100 | | 1,397,274 |
Minth Group Ltd. | 7,000 | | 10,762 |
Sany Heavy Equipment International Holdings Co. Ltd. | 751,000 | | 1,332,524 |
Shenguan Holdings Group Ltd. | 1,334,000 | | 1,772,643 |
SOHO China Ltd. | 1,839,000 | | 1,588,876 |
Common Stocks - continued |
| Shares | | Value |
Cayman Islands - continued |
Spreadtrum Communications, Inc. ADR (a)(d) | 64,200 | | $ 1,373,880 |
TPK Holdings Co. | 54,000 | | 1,611,435 |
Yingli Green Energy Holding Co. Ltd. ADR (a)(d) | 117,100 | | 1,467,263 |
TOTAL CAYMAN ISLANDS | | 26,245,701 |
Chile - 0.1% |
Enersis SA sponsored ADR | 27,690 | | 591,458 |
China - 8.7% |
Agricultural Bank China Ltd. (H Shares) | 7,543,000 | | 4,458,026 |
Anhui Expressway Co. Ltd. (H Shares) | 1,246,000 | | 1,042,839 |
Baidu.com, Inc. sponsored ADR (a) | 23,815 | | 3,537,004 |
Changyou.com Ltd. (A Shares) ADR (a)(d) | 33,000 | | 1,495,560 |
China Communications Construction Co. Ltd. (H Shares) | 2,226,000 | | 2,055,087 |
China Communications Services Corp. Ltd. (H Shares) | 3,326,000 | | 2,029,955 |
China Construction Bank Corp. (H Shares) | 12,180,000 | | 11,511,428 |
China Minsheng Banking Corp. Ltd. (H Shares) | 3,498,000 | | 3,355,536 |
China National Building Materials Co. Ltd. (H Shares) | 736,000 | | 1,550,411 |
China Oilfield Services Ltd. (H Shares) | 918,000 | | 1,815,598 |
Comba Telecom Systems Holdings Ltd. | 570,500 | | 711,812 |
Digital China Holdings Ltd. (H Shares) | 1,000,000 | | 1,944,298 |
Great Wall Motor Co. Ltd. (H Shares) | 588,500 | | 1,054,803 |
Guangzhou R&F Properties Co. Ltd. (H Shares) | 883,200 | | 1,203,180 |
Harbin Power Equipment Co. Ltd. (H Shares) | 2,854,000 | | 2,752,464 |
Industrial & Commercial Bank of China Ltd. (H Shares) | 15,610,035 | | 13,205,507 |
Sina Corp. (a) | 16,478 | | 2,220,411 |
Suning Appliance Chain Store Co. Ltd. (UBS Warrant Programme) warrants 1/7/14 (a) | 350,400 | | 703,931 |
Weichai Power Co. Ltd. (H Shares) | 219,000 | | 1,494,534 |
Yantai Changyu Pioneer Wine Co. (B Shares) | 227,939 | | 2,524,079 |
Zhaojin Mining Industry Co. Ltd. (H Shares) | 64,500 | | 298,569 |
ZTE Corp. (H Shares) | 471,120 | | 1,695,505 |
TOTAL CHINA | | 62,660,537 |
Czech Republic - 1.4% |
Ceske Energeticke Zavody AS | 95,000 | | 5,447,528 |
Komercni Banka AS | 18,193 | | 4,798,191 |
TOTAL CZECH REPUBLIC | | 10,245,719 |
Egypt - 0.4% |
Commercial International Bank Ltd. sponsored GDR | 533,608 | | 2,566,654 |
Finland - 0.1% |
Nokian Tyres PLC | 16,100 | | 834,656 |
Common Stocks - continued |
| Shares | | Value |
Georgia - 0.2% |
Bank of Georgia GDR (Reg. S) (a) | 70,400 | | $ 1,358,720 |
Greece - 0.1% |
Folli Follie Group (a) | 19,700 | | 372,040 |
Hong Kong - 2.6% |
China Insurance International Holdings Co. Ltd. (a) | 244,200 | | 671,320 |
China Overseas Land & Investment Ltd. | 1,410,000 | | 2,712,411 |
CNOOC Ltd. | 4,667,000 | | 11,600,114 |
CNOOC Ltd. sponsored ADR | 400 | | 99,780 |
Giordano International Ltd. | 526,000 | | 379,957 |
Shanghai Industrial Holdings Ltd. | 694,000 | | 2,738,898 |
Sino-Ocean Land Holdings Ltd. | 1,170,500 | | 664,654 |
TOTAL HONG KONG | | 18,867,134 |
India - 4.5% |
Aurobindo Pharma Ltd. | 81,320 | | 357,400 |
Bank of Baroda | 208,283 | | 4,364,038 |
Bharti Airtel Ltd. | 427,826 | | 3,674,054 |
Canara Bank | 139,612 | | 1,993,308 |
Grasim Industries Ltd. | 10,184 | | 592,616 |
Gujarat State Fertilizers & Chemicals Ltd. | 45,121 | | 380,656 |
Indian Overseas Bank | 824,046 | | 2,840,543 |
Infosys Technologies Ltd. sponsored ADR (d) | 21,797 | | 1,420,728 |
Infrastructure Development Finance Co. Ltd. | 692,457 | | 2,273,506 |
Mahindra & Mahindra Financial Services Ltd. | 100,576 | | 1,663,237 |
Shriram Transport Finance Co. Ltd. | 119,937 | | 2,100,083 |
Sintex Industries Ltd. | 96,698 | | 378,991 |
State Bank of India | 35,595 | | 2,255,784 |
Tata Consultancy Services Ltd. | 250,591 | | 6,600,416 |
Tata Motors Ltd. Class A | 45,623 | | 700,505 |
Tata Power Co. Ltd. | 3,875 | | 114,214 |
Thermax Ltd. | 49,613 | | 725,501 |
TOTAL INDIA | | 32,435,580 |
Indonesia - 4.6% |
PT Astra International Tbk | 825,000 | | 5,409,132 |
PT Bank Mandiri (Persero) Tbk | 2,073,500 | | 1,731,147 |
PT Bank Rakyat Indonesia Tbk | 7,947,000 | | 5,985,312 |
PT Bank Tabungan Negara Tbk | 7,019,500 | | 1,401,607 |
PT Bumi Serpong Damai Tbk | 10,061,600 | | 1,080,883 |
PT Ciputra Development Tbk (a) | 14,439,000 | | 657,545 |
PT Delta Dunia Petroindo Tbk (a) | 9,381,000 | | 1,424,021 |
PT Indo Tambangraya Megah Tbk | 268,000 | | 1,464,551 |
Common Stocks - continued |
| Shares | | Value |
Indonesia - continued |
PT Indocement Tunggal Prakarsa Tbk | 451,500 | | $ 896,253 |
PT Indofood Sukses Makmur Tbk | 7,010,000 | | 4,542,917 |
PT Indosat Tbk | 1,275,500 | | 796,816 |
PT Kalbe Farma Tbk | 1,482,000 | | 618,654 |
PT Mitra Adiperkasa Tbk | 251,000 | | 95,986 |
PT Semen Gresik (Persero) Tbk | 1,028,500 | | 1,140,911 |
PT Summarecon Agung Tbk | 3,562,000 | | 524,069 |
PT Tambang Batubbara Bukit Asam Tbk | 500 | | 1,302 |
PT Tower Bersama Infrastructure Tbk | 5,965,000 | | 1,689,064 |
PT XL Axiata Tbk | 4,435,500 | | 3,521,886 |
TOTAL INDONESIA | | 32,982,056 |
Isle of Man - 0.1% |
Bahamas Petroleum Co. PLC (a) | 1,592,141 | | 478,712 |
Israel - 0.1% |
Orbotech Ltd. (a) | 35,772 | | 458,597 |
Kazakhstan - 0.4% |
KazMunaiGas Exploration & Production JSC (Reg. S) GDR | 142,077 | | 3,218,044 |
Korea (South) - 16.7% |
BS Financial Group, Inc. (a) | 26,060 | | 380,473 |
Celltrion, Inc. | 21,044 | | 722,802 |
Cheil Worldwide, Inc. | 68,630 | | 886,377 |
CJ CGV Co. Ltd. | 31,280 | | 818,227 |
CJ Corp. | 46,788 | | 3,538,108 |
OCI Co. Ltd. | 9,591 | | 5,744,724 |
Doosan Co. Ltd. | 18,652 | | 2,295,495 |
GS Holdings Corp. | 57,400 | | 4,807,953 |
Hanwha Corp. | 24,820 | | 1,142,858 |
Honam Petrochemical Corp. | 12,267 | | 4,339,657 |
Hotel Shilla Co. | 47,340 | | 1,167,439 |
Hynix Semiconductor, Inc. | 135,780 | | 4,295,144 |
Hyundai Department Store Co. Ltd. | 20,902 | | 3,071,233 |
Hyundai Engineering & Construction Co. Ltd. | 39,828 | | 3,350,993 |
Hyundai Fire & Marine Insurance Co. Ltd. | 39,220 | | 1,033,264 |
Hyundai Heavy Industries Co. Ltd. | 16,726 | | 8,374,736 |
Hyundai Mobis | 14,989 | | 5,036,077 |
Hyundai Motor Co. | 52,301 | | 12,065,691 |
Hyundai Steel Co. | 33,208 | | 4,226,753 |
Industrial Bank of Korea | 272,950 | | 5,249,527 |
Kia Motors Corp. | 106,300 | | 7,650,413 |
Korea Zinc Co. Ltd. | 1,811 | | 715,247 |
KT&G Corp. | 55,985 | | 3,321,897 |
Common Stocks - continued |
| Shares | | Value |
Korea (South) - continued |
LG Chemical Ltd. | 16,197 | | $ 8,034,072 |
LG Telecom Ltd. | 121,910 | | 742,755 |
LIG Non-Life Insurance Co. Ltd. | 8,110 | | 200,758 |
Lotte Samkang Co. Ltd. | 1,869 | | 568,484 |
Meritz Financial Holdings Co. (a) | 57,433 | | 280,259 |
Meritz Fire & Marine Insurance Co. Ltd. | 167,156 | | 1,924,210 |
Nong Shim Co. Ltd. | 3,790 | | 884,983 |
Paradise Co. Ltd. | 256,983 | | 1,507,986 |
S&T Daewoo Co. Ltd. | 7,540 | | 219,814 |
Samsung Card Co. Ltd. | 28,859 | | 1,436,872 |
Samsung Electronics Co. Ltd. | 21,424 | | 17,905,122 |
SK Chemicals Co. Ltd. | 5,362 | | 380,287 |
SKC Co. Ltd. | 9,490 | | 546,219 |
Sungwoo Hitech Co. Ltd. | 52,442 | | 1,062,582 |
TOTAL KOREA (SOUTH) | | 119,929,491 |
Lebanon - 0.0% |
BLOM Bank SAL GDR | 33,800 | | 312,650 |
Luxembourg - 0.9% |
Evraz Group SA GDR (a) | 93,493 | | 3,169,413 |
MHP SA GDR (Reg. S) (a) | 6,200 | | 114,700 |
Millicom International Cellular SA | 30,400 | | 3,293,536 |
TOTAL LUXEMBOURG | | 6,577,649 |
Malaysia - 0.7% |
Axiata Group Bhd (a) | 2,242,100 | | 3,708,452 |
IJM Corp. Bhd | 57,000 | | 119,291 |
RHB Capital Bhd | 491,900 | | 1,471,134 |
TOTAL MALAYSIA | | 5,298,877 |
Mauritius - 0.2% |
Golden Agri-Resources Ltd. | 2,498,000 | | 1,357,110 |
Mexico - 1.8% |
America Movil SAB de CV Series L sponsored ADR | 190,168 | | 10,877,610 |
Cemex SA de CV sponsored ADR | 249,037 | | 2,161,641 |
TOTAL MEXICO | | 13,039,251 |
Nigeria - 0.5% |
Diamond Bank PLC | 6,987,205 | | 298,193 |
Guaranty Trust Bank PLC GDR (Reg. S) | 442,636 | | 2,788,607 |
Guinness Nigeria PLC | 302,866 | | 401,471 |
TOTAL NIGERIA | | 3,488,271 |
Common Stocks - continued |
| Shares | | Value |
Peru - 0.5% |
Compania de Minas Buenaventura SA sponsored ADR | 86,089 | | $ 3,587,329 |
Poland - 0.5% |
Lubelski Wegiel Bogdanka S.A. (a) | 13,748 | | 652,040 |
Polski Koncern Naftowy Orlen SA (a) | 156,900 | | 3,268,565 |
TOTAL POLAND | | 3,920,605 |
Portugal - 0.2% |
Jeronimo Martins SGPS SA | 89,633 | | 1,471,030 |
Russia - 8.9% |
Cherkizovo Group OJSC GDR (a) | 71,794 | | 1,399,670 |
Lukoil Oil Co. sponsored ADR | 47,600 | | 3,317,720 |
Magnit OJSC GDR (Reg. S) | 128,161 | | 3,588,508 |
Mechel Steel Group OAO sponsored ADR (d) | 118,135 | | 3,375,117 |
OAO Gazprom sponsored ADR | 1,077,730 | | 18,386,068 |
OAO NOVATEK GDR | 41,598 | | 5,844,519 |
OAO Tatneft sponsored ADR | 113,700 | | 5,126,733 |
OAO TMK GDR (Reg. S) (a) | 62,000 | | 1,270,380 |
OJSC Oil Co. Rosneft GDR (Reg. S) | 561,300 | | 5,009,603 |
Polymetal JSC GDR (Reg. S) (a) | 69,021 | | 1,321,062 |
Sberbank (Savings Bank of the Russian Federation) | 2,072,600 | | 7,560,176 |
Sberbank (Savings Bank of the Russian Federation) GDR | 5,807 | | 2,315,908 |
Severstal JSC (a) | 127,765 | | 2,342,584 |
Uralkali JSC GDR (Reg. S) | 80,300 | | 3,370,191 |
TOTAL RUSSIA | | 64,228,239 |
Singapore - 0.9% |
China Minzhong Food Corp. Ltd. | 252,000 | | 372,632 |
GMG Global Ltd. | 1,556,000 | | 355,933 |
Keppel Corp. Ltd. | 419,100 | | 4,074,417 |
Straits Asia Resources Ltd. | 227,000 | | 547,077 |
Yangzijiang Shipbuilding Holdings Ltd. | 234,000 | | 346,015 |
Yanlord Land Group Ltd. | 542,000 | | 642,049 |
TOTAL SINGAPORE | | 6,338,123 |
Slovenia - 0.1% |
Krka dd Novo mesto (a) | 8,126 | | 716,156 |
South Africa - 5.0% |
Absa Group Ltd. | 111,001 | | 2,297,330 |
African Bank Investments Ltd. | 807,647 | | 4,709,097 |
African Rainbow Minerals Ltd. | 64,618 | | 2,101,222 |
Anglo Platinum Ltd. | 29,385 | | 2,983,794 |
AngloGold Ashanti Ltd. | 89,100 | | 4,534,829 |
Common Stocks - continued |
| Shares | | Value |
South Africa - continued |
AngloGold Ashanti Ltd. sponsored ADR | 52,407 | | $ 2,671,709 |
Exxaro Resources Ltd. | 30,876 | | 833,858 |
Foschini Ltd. | 259,878 | | 3,584,388 |
Life Healthcare Group Holdings Ltd. | 284,300 | | 727,116 |
Mr Price Group Ltd. | 218,465 | | 2,234,953 |
Sanlam Ltd. | 625,100 | | 2,679,782 |
Sasol Ltd. | 59,600 | | 3,442,074 |
Sasol Ltd. sponsored ADR | 54,800 | | 3,168,536 |
TOTAL SOUTH AFRICA | | 35,968,688 |
Taiwan - 10.6% |
Advanced Semiconductor Engineering, Inc. | 1,264,432 | | 1,478,537 |
Advanced Semiconductor Engineering, Inc. sponsored ADR (d) | 905,874 | | 5,344,657 |
Catcher Technology Co. Ltd. | 278,000 | | 1,744,466 |
Chroma ATE, Inc. | 570,393 | | 1,879,105 |
Edison Opto Corp. | 61,432 | | 275,197 |
EVA Airways Corp. (a) | 1,435,000 | | 1,318,189 |
Formosa Chemicals & Fibre Corp. | 1,019,000 | | 4,102,998 |
Formosa Plastics Corp. | 1,463,000 | | 5,967,265 |
Fubon Financial Holding Co. Ltd. | 4,494,726 | | 6,581,087 |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 1,911,000 | | 7,228,290 |
HTC Corp. | 201,050 | | 9,111,557 |
Huaku Development Co. Ltd. | 333,000 | | 976,305 |
Kinsus Interconnect Technology Corp. | 366,000 | | 1,274,652 |
Ruentex Development Co. Ltd. | 1,522,000 | | 2,530,919 |
Siliconware Precision Industries Co. Ltd. | 596,000 | | 797,935 |
Siliconware Precision Industries Co. Ltd. sponsored ADR | 102,700 | | 696,306 |
Synnex Technology International Corp. | 221,000 | | 563,190 |
Taishin Financial Holdings Co. Ltd. | 8,782,130 | | 5,158,755 |
Taiwan Cement Corp. | 3,317,804 | | 4,852,079 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 3,758,534 | | 9,705,638 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 309,900 | | 4,183,650 |
Yang Ming Marine Transport Corp. (a) | 624,000 | | 527,523 |
TOTAL TAIWAN | | 76,298,300 |
Thailand - 2.3% |
Advanced Info Service PCL (For. Reg.) | 1,102,800 | | 3,416,242 |
Asian Property Development PCL (For. Reg.) | 4,298,400 | | 906,896 |
PTT PCL (For. Reg.) | 391,100 | | 4,911,671 |
Siam Cement PCL (For. Reg.) | 174,000 | | 2,412,458 |
Common Stocks - continued |
| Shares | | Value |
Thailand - continued |
Siam Commercial Bank PCL (For. Reg.) | 1,271,000 | | $ 4,937,575 |
Total Access Communication PCL (For. Reg.) | 14,600 | | 24,692 |
TOTAL THAILAND | | 16,609,534 |
Turkey - 1.3% |
Aygaz AS | 161,340 | | 1,198,647 |
Tofas Turk Otomobil Fabrikasi AS | 267,327 | | 1,536,120 |
Turkiye Garanti Bankasi AS | 931,375 | | 4,825,270 |
Turkiye Vakiflar Bankasi TAO | 798,000 | | 2,119,606 |
TOTAL TURKEY | | 9,679,643 |
United Kingdom - 0.6% |
Fresnillo PLC | 42,300 | | 1,159,496 |
Xstrata PLC | 112,225 | | 2,852,214 |
TOTAL UNITED KINGDOM | | 4,011,710 |
United States of America - 0.5% |
China Agritech, Inc. (a)(d) | 28,000 | | 173,376 |
Freeport-McMoRan Copper & Gold, Inc. | 45,544 | | 2,506,286 |
Sohu.com, Inc. (a) | 7,400 | | 782,624 |
TOTAL UNITED STATES OF AMERICA | | 3,462,286 |
TOTAL COMMON STOCKS (Cost $539,759,086) | 704,106,432 |
Money Market Funds - 4.5% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 2,975,793 | | 2,975,793 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 28,960,839 | | 28,960,839 |
TOTAL MONEY MARKET FUNDS (Cost $31,936,632) | 31,936,632 |
TOTAL INVESTMENT PORTFOLIO - 102.4% (Cost $571,695,718) | | 736,043,064 |
NET OTHER ASSETS (LIABILITIES) - (2.4)% | | (17,114,280) |
NET ASSETS - 100% | $ 718,928,784 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $1,636,310 or 0.2% 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 | $ 4,796 |
Fidelity Securities Lending Cash Central Fund | 177,419 |
Total | $ 182,215 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Korea (South) | $ 119,929,491 | $ 119,649,232 | $ - | $ 280,259 |
Brazil | 103,612,064 | 103,612,064 | - | - |
Taiwan | 76,298,300 | 64,316,190 | 11,982,110 | - |
Russia | 64,228,239 | 64,228,239 | - | - |
China | 62,660,537 | 61,956,606 | 703,931 | - |
South Africa | 35,968,688 | 27,991,785 | 7,976,903 | - |
Indonesia | 32,982,056 | 32,982,056 | - | - |
India | 32,435,580 | 27,478,926 | 4,956,654 | - |
Cayman Islands | 26,245,701 | 26,245,701 | - | - |
United States of America | 3,462,286 | 3,288,910 | - | 173,376 |
Other | 146,283,490 | 134,683,376 | 11,600,114 | - |
Money Market Funds | 31,936,632 | 31,936,632 | - | - |
Total Investments in Securities: | $ 736,043,064 | $ 698,369,717 | $ 37,219,712 | $ 453,635 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (446,396) |
Cost of Purchases | 900,031 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 453,635 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at April 30, 2011 | $ (446,396) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $120,287,626 of which $34,783,611 and $85,504,015 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $28,159,823) - See accompanying schedule: Unaffiliated issuers (cost $539,759,086) | $ 704,106,432 | |
Fidelity Central Funds (cost $31,936,632) | 31,936,632 | |
Total Investments (cost $571,695,718) | | $ 736,043,064 |
Foreign currency held at value (cost $1,889,601) | | 1,896,584 |
Receivable for investments sold | | 21,649,922 |
Receivable for fund shares sold | | 727,694 |
Dividends receivable | | 3,349,790 |
Distributions receivable from Fidelity Central Funds | | 26,801 |
Prepaid expenses | | 646 |
Other receivables | | 236,222 |
Total assets | | 763,930,723 |
| | |
Liabilities | | |
Payable for investments purchased | $ 13,454,338 | |
Payable for fund shares redeemed | 1,363,887 | |
Accrued management fee | 479,393 | |
Distribution and service plan fees payable | 222,261 | |
Other affiliated payables | 189,733 | |
Other payables and accrued expenses | 331,488 | |
Collateral on securities loaned, at value | 28,960,839 | |
Total liabilities | | 45,001,939 |
| | |
Net Assets | | $ 718,928,784 |
Net Assets consist of: | | |
Paid in capital | | $ 626,468,290 |
Undistributed net investment income | | 993,798 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (72,914,918) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 164,381,614 |
Net Assets | | $ 718,928,784 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($299,805,514 ÷ 11,649,908 shares) | | $ 25.73 |
| | |
Maximum offering price per share (100/94.25 of $25.73) | | $ 27.30 |
Class T:
Net Asset Value and redemption price per share ($105,116,920 ÷ 4,095,055 shares) | | $ 25.67 |
| | |
Maximum offering price per share (100/96.50 of $25.67) | | $ 26.60 |
Class B:
Net Asset Value and offering price per share ($30,463,960 ÷ 1,207,352 shares)A | | $ 25.23 |
| | |
Class C:
Net Asset Value and offering price per share ($111,085,834 ÷ 4,409,256 shares)A | | $ 25.19 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($172,456,556 ÷ 6,671,193 shares) | | $ 25.85 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 7,401,089 |
Interest | | 5 |
Income from Fidelity Central Funds | | 182,215 |
Income before foreign taxes withheld | | 7,583,309 |
Less foreign taxes withheld | | (616,921) |
Total income | | 6,966,388 |
| | |
Expenses | | |
Management fee | $ 2,900,480 | |
Transfer agent fees | 1,018,853 | |
Distribution and service plan fees | 1,325,064 | |
Accounting and security lending fees | 177,660 | |
Custodian fees and expenses | 393,472 | |
Independent trustees' compensation | 1,807 | |
Registration fees | 79,104 | |
Audit | 41,785 | |
Legal | 1,302 | |
Interest | 759 | |
Miscellaneous | 3,404 | |
Total expenses before reductions | 5,943,690 | |
Expense reductions | (232,525) | 5,711,165 |
Net investment income (loss) | | 1,255,223 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 59,397,595 | |
Foreign currency transactions | (282,015) | |
Total net realized gain (loss) | | 59,115,580 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $557,002) | 3,122,642 | |
Assets and liabilities in foreign currencies | 33,623 | |
Total change in net unrealized appreciation (depreciation) | | 3,156,265 |
Net gain (loss) | | 62,271,845 |
Net increase (decrease) in net assets resulting from operations | | $ 63,527,068 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,255,223 | $ 2,925,139 |
Net realized gain (loss) | 59,115,580 | 51,525,426 |
Change in net unrealized appreciation (depreciation) | 3,156,265 | 78,533,647 |
Net increase (decrease) in net assets resulting
from operations | 63,527,068 | 132,984,212 |
Distributions to shareholders from net investment income | (3,137,544) | (1,614,133) |
Distributions to shareholders from net realized gain | (3,336,771) | (3,680,474) |
Total distributions | (6,474,315) | (5,294,607) |
Share transactions - net increase (decrease) | (52,271,908) | 64,839,760 |
Redemption fees | 101,508 | 140,252 |
Total increase (decrease) in net assets | 4,882,353 | 192,669,617 |
| | |
Net Assets | | |
Beginning of period | 714,046,431 | 521,376,814 |
End of period (including undistributed net investment income of $993,798 and undistributed net investment income of $2,876,119, respectively) | $ 718,928,784 | $ 714,046,431 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 23.71 | $ 19.20 | $ 12.59 | $ 32.75 | $ 19.22 | $ 13.75 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .05 | .12 | .10 | .24 | .09 | .09 |
Net realized and unrealized gain (loss) | 2.21 | 4.59 | 6.64 | (19.61) | 13.46 | 5.47 |
Total from investment operations | 2.26 | 4.71 | 6.74 | (19.37) | 13.55 | 5.56 |
Distributions from net investment income | (.11) | (.07) | (.14) | (.02) | (.03) | (.11) |
Distributions from net realized gain | (.13) | (.13) | - | (.79) | - | - |
Total distributions | (.24) | (.20) | (.14) | (.81) | (.03) | (.11) |
Redemption fees added to paid in capital E | - I | - I | .01 | .02 | .01 | .02 |
Net asset value, end of period | $ 25.73 | $ 23.71 | $ 19.20 | $ 12.59 | $ 32.75 | $ 19.22 |
Total Return B, C, D | 9.58% | 24.69% | 54.54% | (60.55)% | 70.63% | 40.75% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.56% A | 1.56% | 1.60% | 1.59% | 1.59% | 1.84% |
Expenses net of fee waivers, if any | 1.56% A | 1.56% | 1.60% | 1.59% | 1.59% | 1.60% |
Expenses net of all reductions | 1.49% A | 1.50% | 1.53% | 1.53% | 1.54% | 1.49% |
Net investment income (loss) | .45% A | .59% | .70% | .94% | .36% | .51% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 299,806 | $ 286,970 | $ 216,187 | $ 122,911 | $ 218,836 | $ 68,232 |
Portfolio turnover rate G | 118% A | 86% | 85% | 61% | 48% | 48% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 23.61 | $ 19.14 | $ 12.49 | $ 32.52 | $ 19.10 | $ 13.69 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .07 | .07 | .17 | .03 | .05 |
Net realized and unrealized gain (loss) | 2.20 | 4.57 | 6.64 | (19.48) | 13.38 | 5.43 |
Total from investment operations | 2.22 | 4.64 | 6.71 | (19.31) | 13.41 | 5.48 |
Distributions from net investment income | (.04) | (.04) | (.07) | - | - | (.09) |
Distributions from net realized gain | (.13) | (.13) | - | (.74) | - | - |
Total distributions | (.16) J | (.17) | (.07) | (.74) | - | (.09) |
Redemption fees added to paid in capital E | - I | - I | .01 | .02 | .01 | .02 |
Net asset value, end of period | $ 25.67 | $ 23.61 | $ 19.14 | $ 12.49 | $ 32.52 | $ 19.10 |
Total Return B, C, D | 9.46% | 24.38% | 54.17% | (60.66)% | 70.26% | 40.32% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.81% A | 1.81% | 1.87% | 1.84% | 1.86% | 2.12% |
Expenses net of fee waivers, if any | 1.81% A | 1.81% | 1.85% | 1.84% | 1.85% | 1.85% |
Expenses net of all reductions | 1.75% A | 1.76% | 1.78% | 1.79% | 1.79% | 1.74% |
Net investment income (loss) | .19% A | .33% | .44% | .69% | .11% | .26% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 105,117 | $ 104,417 | $ 86,959 | $ 47,300 | $ 119,952 | $ 41,369 |
Portfolio turnover rate G | 118% A | 86% | 85% | 61% | 48% | 48% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $.16 per share is comprised of distributions from net investment income of $.037 and distributions from net realized gain of $.125 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 23.14 | $ 18.80 | $ 12.26 | $ 32.03 | $ 18.91 | $ 13.58 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.03) | (.01) | .04 | (.09) | (.04) |
Net realized and unrealized gain (loss) | 2.16 | 4.49 | 6.55 | (19.13) | 13.20 | 5.40 |
Total from investment operations | 2.12 | 4.46 | 6.54 | (19.09) | 13.11 | 5.36 |
Distributions from net investment income | (.01) | - | - | - | - | (.05) |
Distributions from net realized gain | (.03) | (.12) | - | (.70) | - | - |
Total distributions | (.03) J | (.12) | - | (.70) | - | (.05) |
Redemption fees added to paid in capital E | - I | - I | - I | .02 | .01 | .02 |
Net asset value, end of period | $ 25.23 | $ 23.14 | $ 18.80 | $ 12.26 | $ 32.03 | $ 18.91 |
Total Return B, C, D | 9.17% | 23.77% | 53.34% | (60.83)% | 69.38% | 39.67% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.31% A | 2.32% | 2.36% | 2.35% | 2.37% | 2.66% |
Expenses net of fee waivers, if any | 2.31% A | 2.32% | 2.35% | 2.35% | 2.35% | 2.35% |
Expenses net of all reductions | 2.24% A | 2.26% | 2.28% | 2.30% | 2.29% | 2.24% |
Net investment income (loss) | (.31)% A | (.17)% | (.05)% | .18% | (.39)% | (.24)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 30,464 | $ 31,159 | $ 27,580 | $ 17,307 | $ 41,042 | $ 18,622 |
Portfolio turnover rate G | 118% A | 86% | 85% | 61% | 48% | 48% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $.03 per share is comprised of distributions from net investment income of $.005 and distributions from net realized gain of $.025 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 23.13 | $ 18.80 | $ 12.26 | $ 32.04 | $ 18.91 | $ 13.59 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.03) | (.01) | .05 | (.09) | (.04) |
Net realized and unrealized gain (loss) | 2.15 | 4.49 | 6.54 | (19.15) | 13.21 | 5.39 |
Total from investment operations | 2.12 | 4.46 | 6.53 | (19.10) | 13.12 | 5.35 |
Distributions from net investment income | (.01) | - | - | - | - | (.05) |
Distributions from net realized gain | (.05) | (.13) | - | (.70) | - | - |
Total distributions | (.06) | (.13) | - | (.70) | - | (.05) |
Redemption fees added to paid in capital E | - I | - I | .01 | .02 | .01 | .02 |
Net asset value, end of period | $ 25.19 | $ 23.13 | $ 18.80 | $ 12.26 | $ 32.04 | $ 18.91 |
Total Return B, C, D | 9.16% | 23.80% | 53.34% | (60.84)% | 69.43% | 39.59% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.30% A | 2.30% | 2.34% | 2.34% | 2.34% | 2.58% |
Expenses net of fee waivers, if any | 2.30% A | 2.30% | 2.34% | 2.34% | 2.34% | 2.35% |
Expenses net of all reductions | 2.23% A | 2.24% | 2.28% | 2.29% | 2.29% | 2.24% |
Net investment income (loss) | (.29)% A | (.15)% | (.05)% | .19% | (.39)% | (.24)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 111,086 | $ 106,711 | $ 83,939 | $ 44,878 | $ 104,885 | $ 42,805 |
Portfolio turnover rate G | 118% A | 86% | 85% | 61% | 48% | 48% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 23.87 | $ 19.29 | $ 12.71 | $ 33.02 | $ 19.34 | $ 13.80 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .09 | .20 | .15 | .31 | .18 | .14 |
Net realized and unrealized gain (loss) | 2.22 | 4.62 | 6.65 | (19.76) | 13.55 | 5.49 |
Total from investment operations | 2.31 | 4.82 | 6.80 | (19.45) | 13.73 | 5.63 |
Distributions from net investment income | (.20) | (.11) | (.23) | (.09) | (.06) | (.11) |
Distributions from net realized gain | (.13) | (.13) | - | (.79) | - | - |
Total distributions | (.33) | (.24) | (.23) | (.88) | (.06) | (.11) |
Redemption fees added to paid in capital D | - H | - H | .01 | .02 | .01 | .02 |
Net asset value, end of period | $ 25.85 | $ 23.87 | $ 19.29 | $ 12.71 | $ 33.02 | $ 19.34 |
Total Return B, C | 9.75% | 25.15% | 54.97% | (60.42)% | 71.23% | 41.11% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | 1.23% A | 1.22% | 1.30% | 1.27% | 1.25% | 1.47% |
Expenses net of fee waivers, if any | 1.23% A | 1.22% | 1.30% | 1.27% | 1.25% | 1.35% |
Expenses net of all reductions | 1.16% A | 1.17% | 1.23% | 1.21% | 1.19% | 1.24% |
Net investment income (loss) | .78% A | .93% | .99% | 1.26% | .71% | .75% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 172,457 | $ 184,789 | $ 106,713 | $ 47,557 | $ 52,011 | $ 9,172 |
Portfolio turnover rate F | 118% A | 86% | 85% | 61% | 48% | 48% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2011 (Unaudited)
1. Organization.
Fidelity Advisor Emerging Markets Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. The Fund's investments in Emerging Markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, passive foreign investment companies (PFIC), capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 165,078,713 |
Gross unrealized depreciation | (8,729,300) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 156,349,413 |
Tax cost | $ 579,693,651 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure
Semiannual Report
3. Significant Accounting Policies - continued
New Accounting Pronouncement - continued
Requirements in U.S. GAAP and IFRSs. The update changes the wording used to describe the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. The update is effective during interim and annual periods beginning after December 15, 2011. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $415,052,839 and $473,153,855, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (FMR) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .55% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .81% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
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 | 0% | .25% | $ 366,683 | $ 15,331 |
Class T | .25% | .25% | 259,622 | 3,386 |
Class B | .75% | .25% | 152,795 | 115,563 |
Class C | .75% | .25% | 545,964 | 104,822 |
| | | $ 1,325,064 | $ 239,102 |
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% to 1% for Class B, 1% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares. For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 64,736 |
Class T | 14,450 |
Class B* | 30,688 |
Class C* | 5,906 |
| $ 115,780 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
6. 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 | $ 445,549 | .30 |
Class T | 161,097 | .31 |
Class B | 46,829 | .31 |
Class C | 160,589 | .29 |
Institutional Class | 204,789 | .23 |
| $ 1,018,853 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $159 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average
Interest Rate | Interest
Expense |
Borrower | $ 3,769,842 | .38% | $ 759 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $1,262 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. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $232,347 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 $178.
9. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and 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 $177,419. During the period, there were no securities loaned to FCM.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
From net investment income | | |
Class A | $ 1,359,820 | $ 823,941 |
Class T | 162,958 | 194,714 |
Class B | 6,606 | - |
Class C | 23,592 | - |
Institutional Class | 1,584,568 | 595,478 |
Total | $ 3,137,544 | $ 1,614,133 |
Semiannual Report
10. Distributions to Shareholders - continued
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
From net realized gain | | |
Class A | $ 1,530,131 | $ 1,543,065 |
Class T | 550,254 | 631,634 |
Class B | 33,415 | 170,009 |
Class C | 232,626 | 588,609 |
Institutional Class | 990,345 | 747,157 |
Total | $ 3,336,771 | $ 3,680,474 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 | Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
Class A | | | | |
Shares sold | 1,880,219 | 4,968,910 | $ 45,384,307 | $ 104,602,234 |
Reinvestment of distributions | 111,230 | 108,006 | 2,675,569 | 2,258,405 |
Shares redeemed | (2,442,869) | (4,235,043) | (58,930,153) | (87,859,971) |
Net increase (decrease) | (451,420) | 841,873 | $ (10,870,277) | $ 19,000,668 |
Class T | | | | |
Shares sold | 570,046 | 1,526,646 | $ 13,720,446 | $ 32,084,382 |
Reinvestment of distributions | 28,248 | 38,153 | 678,403 | 796,254 |
Shares redeemed | (925,411) | (1,685,925) | (22,134,435) | (34,798,827) |
Net increase (decrease) | (327,117) | (121,126) | $ (7,735,586) | $ (1,918,191) |
Class B | | | | |
Shares sold | 54,428 | 284,855 | $ 1,281,876 | $ 5,842,113 |
Reinvestment of distributions | 1,377 | 7,131 | 32,616 | 146,541 |
Shares redeemed | (194,959) | (412,420) | (4,603,676) | (8,414,002) |
Net increase (decrease) | (139,154) | (120,434) | $ (3,289,184) | $ (2,425,348) |
Class C | | | | |
Shares sold | 663,032 | 1,416,872 | $ 15,676,157 | $ 29,287,955 |
Reinvestment of distributions | 9,045 | 24,169 | 213,702 | 496,184 |
Shares redeemed | (876,569) | (1,291,795) | (20,572,515) | (26,390,410) |
Net increase (decrease) | (204,492) | 149,246 | $ (4,682,656) | $ 3,393,729 |
Institutional Class | | | | |
Shares sold | 1,453,419 | 4,771,525 | $ 34,848,592 | $ 100,570,593 |
Reinvestment of distributions | 73,837 | 25,873 | 1,781,182 | 542,822 |
Shares redeemed | (2,598,151) | (2,586,784) | (62,323,979) | (54,324,513) |
Net increase (decrease) | (1,070,895) | 2,210,614 | $ (25,694,205) | $ 46,788,902 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
FIL Investments (Japan) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investment Advisors (UK) Limited
FIL Investment Advisors
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
FAEM-USAN-0611
1.800637.107
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Emerging Markets
Fund - Institutional Class
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense Ratio | Beginning
Account Value
November 1, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010 to
April 30, 2011 |
Class A | 1.56% | | | |
Actual | | $ 1,000.00 | $ 1,095.80 | $ 8.11 |
HypotheticalA | | $ 1,000.00 | $ 1,017.06 | $ 7.80 |
Class T | 1.81% | | | |
Actual | | $ 1,000.00 | $ 1,094.60 | $ 9.40 |
HypotheticalA | | $ 1,000.00 | $ 1,015.82 | $ 9.05 |
Class B | 2.31% | | | |
Actual | | $ 1,000.00 | $ 1,091.70 | $ 11.98 |
HypotheticalA | | $ 1,000.00 | $ 1,013.34 | $ 11.53 |
Class C | 2.30% | | | |
Actual | | $ 1,000.00 | $ 1,091.60 | $ 11.93 |
HypotheticalA | | $ 1,000.00 | $ 1,013.39 | $ 11.48 |
Institutional Class | 1.23% | | | |
Actual | | $ 1,000.00 | $ 1,097.50 | $ 6.40 |
HypotheticalA | | $ 1,000.00 | $ 1,018.70 | $ 6.16 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
OAO Gazprom sponsored ADR (Russia, Oil, Gas & Consumable Fuels) | 2.5 | 0.0 |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductors & Semiconductor Equipment) | 2.5 | 1.9 |
Petroleo Brasileiro SA - Petrobras (PN) (non-vtg) (Brazil, Oil, Gas & Consumable Fuel) | 2.1 | 1.9 |
Vale SA (PN-A) sponsored ADR (Brazil, Metals & Mining) | 2.0 | 1.9 |
Taiwan Semiconductor Manufacturing Co Ltd. (Taiwan, Semiconductors & Semiconductors Equipment) | 1.9 | 0.5 |
| 11.0 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 24.1 | 26.0 |
Materials | 16.2 | 15.8 |
Energy | 15.2 | 13.2 |
Information Technology | 13.4 | 9.7 |
Consumer Discretionary | 8.3 | 10.6 |
Top Five Countries as of April 30, 2011 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
Korea (South) | 16.7 | 11.8 |
Brazil | 14.4 | 13.4 |
Taiwan | 10.6 | 6.9 |
Russia | 8.9 | 7.9 |
China | 8.7 | 8.0 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011 | As of October 31, 2010 |
| Stocks 97.9% | | | Stocks 98.1% | |
| Short-Term
Investments and
Net Other Assets 2.1% | | | Short-Term
Investments and
Net Other Assets 1.9% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.9% |
| Shares | | Value |
Australia - 0.0% |
Extract Resources Ltd. (a) | 1,994 | | $ 14,605 |
Austria - 0.3% |
Erste Bank AG (d) | 48,275 | | 2,439,748 |
Bailiwick of Jersey - 0.5% |
Randgold Resources Ltd. sponsored ADR | 28,000 | | 2,423,960 |
West China Cement Ltd. (a) | 3,636,000 | | 1,498,165 |
TOTAL BAILIWICK OF JERSEY | | 3,922,125 |
Bermuda - 1.9% |
Alliance Oil Co. Ltd. (depositary receipt) (a)(d) | 75,100 | | 1,488,704 |
Central European Media Enterprises Ltd. Class A (a) | 32,300 | | 739,993 |
Cheung Kong Infrastructure Holdings Ltd. | 523,000 | | 2,548,904 |
China Glass Holdings Ltd. (a) | 692,000 | | 400,963 |
China Yurun Food Group Ltd. | 986,000 | | 3,611,977 |
GP Investments, Ltd. (depositary receipt) (a) | 259,238 | | 1,084,209 |
Great Eagle Holdings Ltd. | 206,000 | | 732,086 |
Orient Overseas International Ltd. | 359,500 | | 2,744,982 |
TOTAL BERMUDA | | 13,351,818 |
Brazil - 14.4% |
Arezzo Industria e Comercio SA | 12,700 | | 196,882 |
Banco Bradesco SA (PN) sponsored ADR (d) | 530,190 | | 10,725,744 |
Banco do Estado do Rio Grande do Sul SA | 175,800 | | 2,111,879 |
Brasil Foods SA | 188,800 | | 3,783,680 |
Brasil Insurance Participacoes e Administracao SA | 1,400 | | 1,761,902 |
Cia Hering SA | 115,800 | | 2,506,191 |
Companhia Brasileira de Distribuicao Grupo Pao de Acucar sponsored ADR (d) | 48,800 | | 2,218,448 |
Companhia de Bebidas das Americas (AmBev) (PN) sponsored ADR | 210,705 | | 6,864,769 |
Companhia de Saneamento Basico do Estado de Sao Paulo (SABESP) | 92,100 | | 2,667,639 |
Eletropaulo Metropolitana SA (PN-B) | 147,700 | | 3,595,570 |
Estacio Participacoes SA | 79,900 | | 1,168,054 |
Even Construtora e Incorporadora SA | 167,400 | | 920,365 |
Itau Unibanco Banco Multiplo SA sponsored ADR | 486,900 | | 11,563,875 |
Light SA | 108,600 | | 1,829,212 |
Marcopolo SA (PN) | 153,700 | | 687,757 |
Mills Estruturas e Servicos de Engenharia SA | 29,000 | | 396,301 |
OGX Petroleo e Gas Participacoes SA (a) | 610,900 | | 6,558,254 |
PDG Realty SA Empreendimentos e Participacoes | 417,600 | | 2,452,567 |
Common Stocks - continued |
| Shares | | Value |
Brazil - continued |
Petroleo Brasileiro SA - Petrobras: | | | |
(ON) sponsored ADR | 17,750 | | $ 662,608 |
(PN) (non-vtg.) | 209,100 | | 3,402,377 |
(PN) sponsored ADR (non-vtg.) | 350,610 | | 11,699,856 |
SLC Agricola SA | 7,000 | | 88,095 |
Tecnisa SA | 118,800 | | 931,794 |
Tegma Gestao Logistica | 104,900 | | 1,798,229 |
TIM Participacoes SA sponsored ADR (non-vtg.) (d) | 117,200 | | 5,529,496 |
Ultrapar Participacoes SA | 51,200 | | 893,307 |
Vale SA (PN-A) sponsored ADR | 482,800 | | 14,435,720 |
Vivo Participacoes SA sponsored ADR | 51,698 | | 2,161,493 |
TOTAL BRAZIL | | 103,612,064 |
British Virgin Islands - 0.4% |
Arcos Dorados Holdings, Inc. | 48,000 | | 1,057,440 |
Mail.ru Group Ltd.: | | | |
GDR (a)(e) | 53,300 | | 1,636,310 |
GDR (Reg. S) (a) | 5,900 | | 181,130 |
TOTAL BRITISH VIRGIN ISLANDS | | 2,874,880 |
Canada - 1.2% |
Carpathian Gold, Inc. (a) | 126,500 | | 58,162 |
Eldorado Gold Corp. | 183,185 | | 3,409,669 |
First Quantum Minerals Ltd. | 21,800 | | 3,106,748 |
SouthGobi Energy Resources Ltd. (a) | 24,400 | | 306,386 |
Uranium One, Inc. | 336,100 | | 1,399,677 |
TOTAL CANADA | | 8,280,642 |
Cayman Islands - 3.7% |
Belle International Holdings Ltd. | 86,000 | | 167,874 |
Central China Real Estate Ltd. | 1,297,000 | | 359,058 |
China Shanshui Cement Group Ltd. | 3,944,000 | | 4,418,166 |
Country Garden Holdings Co. Ltd. | 3,081,000 | | 1,249,649 |
Eurasia Drilling Co. Ltd. GDR (Reg. S) | 90,963 | | 3,065,453 |
EVA Precision Industrial Holdings Ltd. | 2,398,000 | | 2,053,320 |
Gourmet Master Co. Ltd. | 37,000 | | 386,962 |
Kaisa Group Holdings Ltd. (a) | 991,000 | | 401,948 |
Kingboard Chemical Holdings Ltd. | 655,000 | | 3,588,614 |
Melco PBL Entertainment (Macau) Ltd. sponsored ADR (a) | 130,100 | | 1,397,274 |
Minth Group Ltd. | 7,000 | | 10,762 |
Sany Heavy Equipment International Holdings Co. Ltd. | 751,000 | | 1,332,524 |
Shenguan Holdings Group Ltd. | 1,334,000 | | 1,772,643 |
SOHO China Ltd. | 1,839,000 | | 1,588,876 |
Common Stocks - continued |
| Shares | | Value |
Cayman Islands - continued |
Spreadtrum Communications, Inc. ADR (a)(d) | 64,200 | | $ 1,373,880 |
TPK Holdings Co. | 54,000 | | 1,611,435 |
Yingli Green Energy Holding Co. Ltd. ADR (a)(d) | 117,100 | | 1,467,263 |
TOTAL CAYMAN ISLANDS | | 26,245,701 |
Chile - 0.1% |
Enersis SA sponsored ADR | 27,690 | | 591,458 |
China - 8.7% |
Agricultural Bank China Ltd. (H Shares) | 7,543,000 | | 4,458,026 |
Anhui Expressway Co. Ltd. (H Shares) | 1,246,000 | | 1,042,839 |
Baidu.com, Inc. sponsored ADR (a) | 23,815 | | 3,537,004 |
Changyou.com Ltd. (A Shares) ADR (a)(d) | 33,000 | | 1,495,560 |
China Communications Construction Co. Ltd. (H Shares) | 2,226,000 | | 2,055,087 |
China Communications Services Corp. Ltd. (H Shares) | 3,326,000 | | 2,029,955 |
China Construction Bank Corp. (H Shares) | 12,180,000 | | 11,511,428 |
China Minsheng Banking Corp. Ltd. (H Shares) | 3,498,000 | | 3,355,536 |
China National Building Materials Co. Ltd. (H Shares) | 736,000 | | 1,550,411 |
China Oilfield Services Ltd. (H Shares) | 918,000 | | 1,815,598 |
Comba Telecom Systems Holdings Ltd. | 570,500 | | 711,812 |
Digital China Holdings Ltd. (H Shares) | 1,000,000 | | 1,944,298 |
Great Wall Motor Co. Ltd. (H Shares) | 588,500 | | 1,054,803 |
Guangzhou R&F Properties Co. Ltd. (H Shares) | 883,200 | | 1,203,180 |
Harbin Power Equipment Co. Ltd. (H Shares) | 2,854,000 | | 2,752,464 |
Industrial & Commercial Bank of China Ltd. (H Shares) | 15,610,035 | | 13,205,507 |
Sina Corp. (a) | 16,478 | | 2,220,411 |
Suning Appliance Chain Store Co. Ltd. (UBS Warrant Programme) warrants 1/7/14 (a) | 350,400 | | 703,931 |
Weichai Power Co. Ltd. (H Shares) | 219,000 | | 1,494,534 |
Yantai Changyu Pioneer Wine Co. (B Shares) | 227,939 | | 2,524,079 |
Zhaojin Mining Industry Co. Ltd. (H Shares) | 64,500 | | 298,569 |
ZTE Corp. (H Shares) | 471,120 | | 1,695,505 |
TOTAL CHINA | | 62,660,537 |
Czech Republic - 1.4% |
Ceske Energeticke Zavody AS | 95,000 | | 5,447,528 |
Komercni Banka AS | 18,193 | | 4,798,191 |
TOTAL CZECH REPUBLIC | | 10,245,719 |
Egypt - 0.4% |
Commercial International Bank Ltd. sponsored GDR | 533,608 | | 2,566,654 |
Finland - 0.1% |
Nokian Tyres PLC | 16,100 | | 834,656 |
Common Stocks - continued |
| Shares | | Value |
Georgia - 0.2% |
Bank of Georgia GDR (Reg. S) (a) | 70,400 | | $ 1,358,720 |
Greece - 0.1% |
Folli Follie Group (a) | 19,700 | | 372,040 |
Hong Kong - 2.6% |
China Insurance International Holdings Co. Ltd. (a) | 244,200 | | 671,320 |
China Overseas Land & Investment Ltd. | 1,410,000 | | 2,712,411 |
CNOOC Ltd. | 4,667,000 | | 11,600,114 |
CNOOC Ltd. sponsored ADR | 400 | | 99,780 |
Giordano International Ltd. | 526,000 | | 379,957 |
Shanghai Industrial Holdings Ltd. | 694,000 | | 2,738,898 |
Sino-Ocean Land Holdings Ltd. | 1,170,500 | | 664,654 |
TOTAL HONG KONG | | 18,867,134 |
India - 4.5% |
Aurobindo Pharma Ltd. | 81,320 | | 357,400 |
Bank of Baroda | 208,283 | | 4,364,038 |
Bharti Airtel Ltd. | 427,826 | | 3,674,054 |
Canara Bank | 139,612 | | 1,993,308 |
Grasim Industries Ltd. | 10,184 | | 592,616 |
Gujarat State Fertilizers & Chemicals Ltd. | 45,121 | | 380,656 |
Indian Overseas Bank | 824,046 | | 2,840,543 |
Infosys Technologies Ltd. sponsored ADR (d) | 21,797 | | 1,420,728 |
Infrastructure Development Finance Co. Ltd. | 692,457 | | 2,273,506 |
Mahindra & Mahindra Financial Services Ltd. | 100,576 | | 1,663,237 |
Shriram Transport Finance Co. Ltd. | 119,937 | | 2,100,083 |
Sintex Industries Ltd. | 96,698 | | 378,991 |
State Bank of India | 35,595 | | 2,255,784 |
Tata Consultancy Services Ltd. | 250,591 | | 6,600,416 |
Tata Motors Ltd. Class A | 45,623 | | 700,505 |
Tata Power Co. Ltd. | 3,875 | | 114,214 |
Thermax Ltd. | 49,613 | | 725,501 |
TOTAL INDIA | | 32,435,580 |
Indonesia - 4.6% |
PT Astra International Tbk | 825,000 | | 5,409,132 |
PT Bank Mandiri (Persero) Tbk | 2,073,500 | | 1,731,147 |
PT Bank Rakyat Indonesia Tbk | 7,947,000 | | 5,985,312 |
PT Bank Tabungan Negara Tbk | 7,019,500 | | 1,401,607 |
PT Bumi Serpong Damai Tbk | 10,061,600 | | 1,080,883 |
PT Ciputra Development Tbk (a) | 14,439,000 | | 657,545 |
PT Delta Dunia Petroindo Tbk (a) | 9,381,000 | | 1,424,021 |
PT Indo Tambangraya Megah Tbk | 268,000 | | 1,464,551 |
Common Stocks - continued |
| Shares | | Value |
Indonesia - continued |
PT Indocement Tunggal Prakarsa Tbk | 451,500 | | $ 896,253 |
PT Indofood Sukses Makmur Tbk | 7,010,000 | | 4,542,917 |
PT Indosat Tbk | 1,275,500 | | 796,816 |
PT Kalbe Farma Tbk | 1,482,000 | | 618,654 |
PT Mitra Adiperkasa Tbk | 251,000 | | 95,986 |
PT Semen Gresik (Persero) Tbk | 1,028,500 | | 1,140,911 |
PT Summarecon Agung Tbk | 3,562,000 | | 524,069 |
PT Tambang Batubbara Bukit Asam Tbk | 500 | | 1,302 |
PT Tower Bersama Infrastructure Tbk | 5,965,000 | | 1,689,064 |
PT XL Axiata Tbk | 4,435,500 | | 3,521,886 |
TOTAL INDONESIA | | 32,982,056 |
Isle of Man - 0.1% |
Bahamas Petroleum Co. PLC (a) | 1,592,141 | | 478,712 |
Israel - 0.1% |
Orbotech Ltd. (a) | 35,772 | | 458,597 |
Kazakhstan - 0.4% |
KazMunaiGas Exploration & Production JSC (Reg. S) GDR | 142,077 | | 3,218,044 |
Korea (South) - 16.7% |
BS Financial Group, Inc. (a) | 26,060 | | 380,473 |
Celltrion, Inc. | 21,044 | | 722,802 |
Cheil Worldwide, Inc. | 68,630 | | 886,377 |
CJ CGV Co. Ltd. | 31,280 | | 818,227 |
CJ Corp. | 46,788 | | 3,538,108 |
OCI Co. Ltd. | 9,591 | | 5,744,724 |
Doosan Co. Ltd. | 18,652 | | 2,295,495 |
GS Holdings Corp. | 57,400 | | 4,807,953 |
Hanwha Corp. | 24,820 | | 1,142,858 |
Honam Petrochemical Corp. | 12,267 | | 4,339,657 |
Hotel Shilla Co. | 47,340 | | 1,167,439 |
Hynix Semiconductor, Inc. | 135,780 | | 4,295,144 |
Hyundai Department Store Co. Ltd. | 20,902 | | 3,071,233 |
Hyundai Engineering & Construction Co. Ltd. | 39,828 | | 3,350,993 |
Hyundai Fire & Marine Insurance Co. Ltd. | 39,220 | | 1,033,264 |
Hyundai Heavy Industries Co. Ltd. | 16,726 | | 8,374,736 |
Hyundai Mobis | 14,989 | | 5,036,077 |
Hyundai Motor Co. | 52,301 | | 12,065,691 |
Hyundai Steel Co. | 33,208 | | 4,226,753 |
Industrial Bank of Korea | 272,950 | | 5,249,527 |
Kia Motors Corp. | 106,300 | | 7,650,413 |
Korea Zinc Co. Ltd. | 1,811 | | 715,247 |
KT&G Corp. | 55,985 | | 3,321,897 |
Common Stocks - continued |
| Shares | | Value |
Korea (South) - continued |
LG Chemical Ltd. | 16,197 | | $ 8,034,072 |
LG Telecom Ltd. | 121,910 | | 742,755 |
LIG Non-Life Insurance Co. Ltd. | 8,110 | | 200,758 |
Lotte Samkang Co. Ltd. | 1,869 | | 568,484 |
Meritz Financial Holdings Co. (a) | 57,433 | | 280,259 |
Meritz Fire & Marine Insurance Co. Ltd. | 167,156 | | 1,924,210 |
Nong Shim Co. Ltd. | 3,790 | | 884,983 |
Paradise Co. Ltd. | 256,983 | | 1,507,986 |
S&T Daewoo Co. Ltd. | 7,540 | | 219,814 |
Samsung Card Co. Ltd. | 28,859 | | 1,436,872 |
Samsung Electronics Co. Ltd. | 21,424 | | 17,905,122 |
SK Chemicals Co. Ltd. | 5,362 | | 380,287 |
SKC Co. Ltd. | 9,490 | | 546,219 |
Sungwoo Hitech Co. Ltd. | 52,442 | | 1,062,582 |
TOTAL KOREA (SOUTH) | | 119,929,491 |
Lebanon - 0.0% |
BLOM Bank SAL GDR | 33,800 | | 312,650 |
Luxembourg - 0.9% |
Evraz Group SA GDR (a) | 93,493 | | 3,169,413 |
MHP SA GDR (Reg. S) (a) | 6,200 | | 114,700 |
Millicom International Cellular SA | 30,400 | | 3,293,536 |
TOTAL LUXEMBOURG | | 6,577,649 |
Malaysia - 0.7% |
Axiata Group Bhd (a) | 2,242,100 | | 3,708,452 |
IJM Corp. Bhd | 57,000 | | 119,291 |
RHB Capital Bhd | 491,900 | | 1,471,134 |
TOTAL MALAYSIA | | 5,298,877 |
Mauritius - 0.2% |
Golden Agri-Resources Ltd. | 2,498,000 | | 1,357,110 |
Mexico - 1.8% |
America Movil SAB de CV Series L sponsored ADR | 190,168 | | 10,877,610 |
Cemex SA de CV sponsored ADR | 249,037 | | 2,161,641 |
TOTAL MEXICO | | 13,039,251 |
Nigeria - 0.5% |
Diamond Bank PLC | 6,987,205 | | 298,193 |
Guaranty Trust Bank PLC GDR (Reg. S) | 442,636 | | 2,788,607 |
Guinness Nigeria PLC | 302,866 | | 401,471 |
TOTAL NIGERIA | | 3,488,271 |
Common Stocks - continued |
| Shares | | Value |
Peru - 0.5% |
Compania de Minas Buenaventura SA sponsored ADR | 86,089 | | $ 3,587,329 |
Poland - 0.5% |
Lubelski Wegiel Bogdanka S.A. (a) | 13,748 | | 652,040 |
Polski Koncern Naftowy Orlen SA (a) | 156,900 | | 3,268,565 |
TOTAL POLAND | | 3,920,605 |
Portugal - 0.2% |
Jeronimo Martins SGPS SA | 89,633 | | 1,471,030 |
Russia - 8.9% |
Cherkizovo Group OJSC GDR (a) | 71,794 | | 1,399,670 |
Lukoil Oil Co. sponsored ADR | 47,600 | | 3,317,720 |
Magnit OJSC GDR (Reg. S) | 128,161 | | 3,588,508 |
Mechel Steel Group OAO sponsored ADR (d) | 118,135 | | 3,375,117 |
OAO Gazprom sponsored ADR | 1,077,730 | | 18,386,068 |
OAO NOVATEK GDR | 41,598 | | 5,844,519 |
OAO Tatneft sponsored ADR | 113,700 | | 5,126,733 |
OAO TMK GDR (Reg. S) (a) | 62,000 | | 1,270,380 |
OJSC Oil Co. Rosneft GDR (Reg. S) | 561,300 | | 5,009,603 |
Polymetal JSC GDR (Reg. S) (a) | 69,021 | | 1,321,062 |
Sberbank (Savings Bank of the Russian Federation) | 2,072,600 | | 7,560,176 |
Sberbank (Savings Bank of the Russian Federation) GDR | 5,807 | | 2,315,908 |
Severstal JSC (a) | 127,765 | | 2,342,584 |
Uralkali JSC GDR (Reg. S) | 80,300 | | 3,370,191 |
TOTAL RUSSIA | | 64,228,239 |
Singapore - 0.9% |
China Minzhong Food Corp. Ltd. | 252,000 | | 372,632 |
GMG Global Ltd. | 1,556,000 | | 355,933 |
Keppel Corp. Ltd. | 419,100 | | 4,074,417 |
Straits Asia Resources Ltd. | 227,000 | | 547,077 |
Yangzijiang Shipbuilding Holdings Ltd. | 234,000 | | 346,015 |
Yanlord Land Group Ltd. | 542,000 | | 642,049 |
TOTAL SINGAPORE | | 6,338,123 |
Slovenia - 0.1% |
Krka dd Novo mesto (a) | 8,126 | | 716,156 |
South Africa - 5.0% |
Absa Group Ltd. | 111,001 | | 2,297,330 |
African Bank Investments Ltd. | 807,647 | | 4,709,097 |
African Rainbow Minerals Ltd. | 64,618 | | 2,101,222 |
Anglo Platinum Ltd. | 29,385 | | 2,983,794 |
AngloGold Ashanti Ltd. | 89,100 | | 4,534,829 |
Common Stocks - continued |
| Shares | | Value |
South Africa - continued |
AngloGold Ashanti Ltd. sponsored ADR | 52,407 | | $ 2,671,709 |
Exxaro Resources Ltd. | 30,876 | | 833,858 |
Foschini Ltd. | 259,878 | | 3,584,388 |
Life Healthcare Group Holdings Ltd. | 284,300 | | 727,116 |
Mr Price Group Ltd. | 218,465 | | 2,234,953 |
Sanlam Ltd. | 625,100 | | 2,679,782 |
Sasol Ltd. | 59,600 | | 3,442,074 |
Sasol Ltd. sponsored ADR | 54,800 | | 3,168,536 |
TOTAL SOUTH AFRICA | | 35,968,688 |
Taiwan - 10.6% |
Advanced Semiconductor Engineering, Inc. | 1,264,432 | | 1,478,537 |
Advanced Semiconductor Engineering, Inc. sponsored ADR (d) | 905,874 | | 5,344,657 |
Catcher Technology Co. Ltd. | 278,000 | | 1,744,466 |
Chroma ATE, Inc. | 570,393 | | 1,879,105 |
Edison Opto Corp. | 61,432 | | 275,197 |
EVA Airways Corp. (a) | 1,435,000 | | 1,318,189 |
Formosa Chemicals & Fibre Corp. | 1,019,000 | | 4,102,998 |
Formosa Plastics Corp. | 1,463,000 | | 5,967,265 |
Fubon Financial Holding Co. Ltd. | 4,494,726 | | 6,581,087 |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 1,911,000 | | 7,228,290 |
HTC Corp. | 201,050 | | 9,111,557 |
Huaku Development Co. Ltd. | 333,000 | | 976,305 |
Kinsus Interconnect Technology Corp. | 366,000 | | 1,274,652 |
Ruentex Development Co. Ltd. | 1,522,000 | | 2,530,919 |
Siliconware Precision Industries Co. Ltd. | 596,000 | | 797,935 |
Siliconware Precision Industries Co. Ltd. sponsored ADR | 102,700 | | 696,306 |
Synnex Technology International Corp. | 221,000 | | 563,190 |
Taishin Financial Holdings Co. Ltd. | 8,782,130 | | 5,158,755 |
Taiwan Cement Corp. | 3,317,804 | | 4,852,079 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 3,758,534 | | 9,705,638 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 309,900 | | 4,183,650 |
Yang Ming Marine Transport Corp. (a) | 624,000 | | 527,523 |
TOTAL TAIWAN | | 76,298,300 |
Thailand - 2.3% |
Advanced Info Service PCL (For. Reg.) | 1,102,800 | | 3,416,242 |
Asian Property Development PCL (For. Reg.) | 4,298,400 | | 906,896 |
PTT PCL (For. Reg.) | 391,100 | | 4,911,671 |
Siam Cement PCL (For. Reg.) | 174,000 | | 2,412,458 |
Common Stocks - continued |
| Shares | | Value |
Thailand - continued |
Siam Commercial Bank PCL (For. Reg.) | 1,271,000 | | $ 4,937,575 |
Total Access Communication PCL (For. Reg.) | 14,600 | | 24,692 |
TOTAL THAILAND | | 16,609,534 |
Turkey - 1.3% |
Aygaz AS | 161,340 | | 1,198,647 |
Tofas Turk Otomobil Fabrikasi AS | 267,327 | | 1,536,120 |
Turkiye Garanti Bankasi AS | 931,375 | | 4,825,270 |
Turkiye Vakiflar Bankasi TAO | 798,000 | | 2,119,606 |
TOTAL TURKEY | | 9,679,643 |
United Kingdom - 0.6% |
Fresnillo PLC | 42,300 | | 1,159,496 |
Xstrata PLC | 112,225 | | 2,852,214 |
TOTAL UNITED KINGDOM | | 4,011,710 |
United States of America - 0.5% |
China Agritech, Inc. (a)(d) | 28,000 | | 173,376 |
Freeport-McMoRan Copper & Gold, Inc. | 45,544 | | 2,506,286 |
Sohu.com, Inc. (a) | 7,400 | | 782,624 |
TOTAL UNITED STATES OF AMERICA | | 3,462,286 |
TOTAL COMMON STOCKS (Cost $539,759,086) | 704,106,432 |
Money Market Funds - 4.5% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 2,975,793 | | 2,975,793 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 28,960,839 | | 28,960,839 |
TOTAL MONEY MARKET FUNDS (Cost $31,936,632) | 31,936,632 |
TOTAL INVESTMENT PORTFOLIO - 102.4% (Cost $571,695,718) | | 736,043,064 |
NET OTHER ASSETS (LIABILITIES) - (2.4)% | | (17,114,280) |
NET ASSETS - 100% | $ 718,928,784 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $1,636,310 or 0.2% 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 | $ 4,796 |
Fidelity Securities Lending Cash Central Fund | 177,419 |
Total | $ 182,215 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Korea (South) | $ 119,929,491 | $ 119,649,232 | $ - | $ 280,259 |
Brazil | 103,612,064 | 103,612,064 | - | - |
Taiwan | 76,298,300 | 64,316,190 | 11,982,110 | - |
Russia | 64,228,239 | 64,228,239 | - | - |
China | 62,660,537 | 61,956,606 | 703,931 | - |
South Africa | 35,968,688 | 27,991,785 | 7,976,903 | - |
Indonesia | 32,982,056 | 32,982,056 | - | - |
India | 32,435,580 | 27,478,926 | 4,956,654 | - |
Cayman Islands | 26,245,701 | 26,245,701 | - | - |
United States of America | 3,462,286 | 3,288,910 | - | 173,376 |
Other | 146,283,490 | 134,683,376 | 11,600,114 | - |
Money Market Funds | 31,936,632 | 31,936,632 | - | - |
Total Investments in Securities: | $ 736,043,064 | $ 698,369,717 | $ 37,219,712 | $ 453,635 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (446,396) |
Cost of Purchases | 900,031 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 453,635 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at April 30, 2011 | $ (446,396) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $120,287,626 of which $34,783,611 and $85,504,015 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $28,159,823) - See accompanying schedule: Unaffiliated issuers (cost $539,759,086) | $ 704,106,432 | |
Fidelity Central Funds (cost $31,936,632) | 31,936,632 | |
Total Investments (cost $571,695,718) | | $ 736,043,064 |
Foreign currency held at value (cost $1,889,601) | | 1,896,584 |
Receivable for investments sold | | 21,649,922 |
Receivable for fund shares sold | | 727,694 |
Dividends receivable | | 3,349,790 |
Distributions receivable from Fidelity Central Funds | | 26,801 |
Prepaid expenses | | 646 |
Other receivables | | 236,222 |
Total assets | | 763,930,723 |
| | |
Liabilities | | |
Payable for investments purchased | $ 13,454,338 | |
Payable for fund shares redeemed | 1,363,887 | |
Accrued management fee | 479,393 | |
Distribution and service plan fees payable | 222,261 | |
Other affiliated payables | 189,733 | |
Other payables and accrued expenses | 331,488 | |
Collateral on securities loaned, at value | 28,960,839 | |
Total liabilities | | 45,001,939 |
| | |
Net Assets | | $ 718,928,784 |
Net Assets consist of: | | |
Paid in capital | | $ 626,468,290 |
Undistributed net investment income | | 993,798 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (72,914,918) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 164,381,614 |
Net Assets | | $ 718,928,784 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($299,805,514 ÷ 11,649,908 shares) | | $ 25.73 |
| | |
Maximum offering price per share (100/94.25 of $25.73) | | $ 27.30 |
Class T:
Net Asset Value and redemption price per share ($105,116,920 ÷ 4,095,055 shares) | | $ 25.67 |
| | |
Maximum offering price per share (100/96.50 of $25.67) | | $ 26.60 |
Class B:
Net Asset Value and offering price per share ($30,463,960 ÷ 1,207,352 shares)A | | $ 25.23 |
| | |
Class C:
Net Asset Value and offering price per share ($111,085,834 ÷ 4,409,256 shares)A | | $ 25.19 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($172,456,556 ÷ 6,671,193 shares) | | $ 25.85 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 7,401,089 |
Interest | | 5 |
Income from Fidelity Central Funds | | 182,215 |
Income before foreign taxes withheld | | 7,583,309 |
Less foreign taxes withheld | | (616,921) |
Total income | | 6,966,388 |
| | |
Expenses | | |
Management fee | $ 2,900,480 | |
Transfer agent fees | 1,018,853 | |
Distribution and service plan fees | 1,325,064 | |
Accounting and security lending fees | 177,660 | |
Custodian fees and expenses | 393,472 | |
Independent trustees' compensation | 1,807 | |
Registration fees | 79,104 | |
Audit | 41,785 | |
Legal | 1,302 | |
Interest | 759 | |
Miscellaneous | 3,404 | |
Total expenses before reductions | 5,943,690 | |
Expense reductions | (232,525) | 5,711,165 |
Net investment income (loss) | | 1,255,223 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 59,397,595 | |
Foreign currency transactions | (282,015) | |
Total net realized gain (loss) | | 59,115,580 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $557,002) | 3,122,642 | |
Assets and liabilities in foreign currencies | 33,623 | |
Total change in net unrealized appreciation (depreciation) | | 3,156,265 |
Net gain (loss) | | 62,271,845 |
Net increase (decrease) in net assets resulting from operations | | $ 63,527,068 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,255,223 | $ 2,925,139 |
Net realized gain (loss) | 59,115,580 | 51,525,426 |
Change in net unrealized appreciation (depreciation) | 3,156,265 | 78,533,647 |
Net increase (decrease) in net assets resulting
from operations | 63,527,068 | 132,984,212 |
Distributions to shareholders from net investment income | (3,137,544) | (1,614,133) |
Distributions to shareholders from net realized gain | (3,336,771) | (3,680,474) |
Total distributions | (6,474,315) | (5,294,607) |
Share transactions - net increase (decrease) | (52,271,908) | 64,839,760 |
Redemption fees | 101,508 | 140,252 |
Total increase (decrease) in net assets | 4,882,353 | 192,669,617 |
| | |
Net Assets | | |
Beginning of period | 714,046,431 | 521,376,814 |
End of period (including undistributed net investment income of $993,798 and undistributed net investment income of $2,876,119, respectively) | $ 718,928,784 | $ 714,046,431 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 23.71 | $ 19.20 | $ 12.59 | $ 32.75 | $ 19.22 | $ 13.75 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .05 | .12 | .10 | .24 | .09 | .09 |
Net realized and unrealized gain (loss) | 2.21 | 4.59 | 6.64 | (19.61) | 13.46 | 5.47 |
Total from investment operations | 2.26 | 4.71 | 6.74 | (19.37) | 13.55 | 5.56 |
Distributions from net investment income | (.11) | (.07) | (.14) | (.02) | (.03) | (.11) |
Distributions from net realized gain | (.13) | (.13) | - | (.79) | - | - |
Total distributions | (.24) | (.20) | (.14) | (.81) | (.03) | (.11) |
Redemption fees added to paid in capital E | - I | - I | .01 | .02 | .01 | .02 |
Net asset value, end of period | $ 25.73 | $ 23.71 | $ 19.20 | $ 12.59 | $ 32.75 | $ 19.22 |
Total Return B, C, D | 9.58% | 24.69% | 54.54% | (60.55)% | 70.63% | 40.75% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.56% A | 1.56% | 1.60% | 1.59% | 1.59% | 1.84% |
Expenses net of fee waivers, if any | 1.56% A | 1.56% | 1.60% | 1.59% | 1.59% | 1.60% |
Expenses net of all reductions | 1.49% A | 1.50% | 1.53% | 1.53% | 1.54% | 1.49% |
Net investment income (loss) | .45% A | .59% | .70% | .94% | .36% | .51% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 299,806 | $ 286,970 | $ 216,187 | $ 122,911 | $ 218,836 | $ 68,232 |
Portfolio turnover rate G | 118% A | 86% | 85% | 61% | 48% | 48% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 23.61 | $ 19.14 | $ 12.49 | $ 32.52 | $ 19.10 | $ 13.69 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .07 | .07 | .17 | .03 | .05 |
Net realized and unrealized gain (loss) | 2.20 | 4.57 | 6.64 | (19.48) | 13.38 | 5.43 |
Total from investment operations | 2.22 | 4.64 | 6.71 | (19.31) | 13.41 | 5.48 |
Distributions from net investment income | (.04) | (.04) | (.07) | - | - | (.09) |
Distributions from net realized gain | (.13) | (.13) | - | (.74) | - | - |
Total distributions | (.16) J | (.17) | (.07) | (.74) | - | (.09) |
Redemption fees added to paid in capital E | - I | - I | .01 | .02 | .01 | .02 |
Net asset value, end of period | $ 25.67 | $ 23.61 | $ 19.14 | $ 12.49 | $ 32.52 | $ 19.10 |
Total Return B, C, D | 9.46% | 24.38% | 54.17% | (60.66)% | 70.26% | 40.32% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.81% A | 1.81% | 1.87% | 1.84% | 1.86% | 2.12% |
Expenses net of fee waivers, if any | 1.81% A | 1.81% | 1.85% | 1.84% | 1.85% | 1.85% |
Expenses net of all reductions | 1.75% A | 1.76% | 1.78% | 1.79% | 1.79% | 1.74% |
Net investment income (loss) | .19% A | .33% | .44% | .69% | .11% | .26% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 105,117 | $ 104,417 | $ 86,959 | $ 47,300 | $ 119,952 | $ 41,369 |
Portfolio turnover rate G | 118% A | 86% | 85% | 61% | 48% | 48% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $.16 per share is comprised of distributions from net investment income of $.037 and distributions from net realized gain of $.125 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 23.14 | $ 18.80 | $ 12.26 | $ 32.03 | $ 18.91 | $ 13.58 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.03) | (.01) | .04 | (.09) | (.04) |
Net realized and unrealized gain (loss) | 2.16 | 4.49 | 6.55 | (19.13) | 13.20 | 5.40 |
Total from investment operations | 2.12 | 4.46 | 6.54 | (19.09) | 13.11 | 5.36 |
Distributions from net investment income | (.01) | - | - | - | - | (.05) |
Distributions from net realized gain | (.03) | (.12) | - | (.70) | - | - |
Total distributions | (.03) J | (.12) | - | (.70) | - | (.05) |
Redemption fees added to paid in capital E | - I | - I | - I | .02 | .01 | .02 |
Net asset value, end of period | $ 25.23 | $ 23.14 | $ 18.80 | $ 12.26 | $ 32.03 | $ 18.91 |
Total Return B, C, D | 9.17% | 23.77% | 53.34% | (60.83)% | 69.38% | 39.67% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.31% A | 2.32% | 2.36% | 2.35% | 2.37% | 2.66% |
Expenses net of fee waivers, if any | 2.31% A | 2.32% | 2.35% | 2.35% | 2.35% | 2.35% |
Expenses net of all reductions | 2.24% A | 2.26% | 2.28% | 2.30% | 2.29% | 2.24% |
Net investment income (loss) | (.31)% A | (.17)% | (.05)% | .18% | (.39)% | (.24)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 30,464 | $ 31,159 | $ 27,580 | $ 17,307 | $ 41,042 | $ 18,622 |
Portfolio turnover rate G | 118% A | 86% | 85% | 61% | 48% | 48% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $.03 per share is comprised of distributions from net investment income of $.005 and distributions from net realized gain of $.025 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 23.13 | $ 18.80 | $ 12.26 | $ 32.04 | $ 18.91 | $ 13.59 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.03) | (.01) | .05 | (.09) | (.04) |
Net realized and unrealized gain (loss) | 2.15 | 4.49 | 6.54 | (19.15) | 13.21 | 5.39 |
Total from investment operations | 2.12 | 4.46 | 6.53 | (19.10) | 13.12 | 5.35 |
Distributions from net investment income | (.01) | - | - | - | - | (.05) |
Distributions from net realized gain | (.05) | (.13) | - | (.70) | - | - |
Total distributions | (.06) | (.13) | - | (.70) | - | (.05) |
Redemption fees added to paid in capital E | - I | - I | .01 | .02 | .01 | .02 |
Net asset value, end of period | $ 25.19 | $ 23.13 | $ 18.80 | $ 12.26 | $ 32.04 | $ 18.91 |
Total Return B, C, D | 9.16% | 23.80% | 53.34% | (60.84)% | 69.43% | 39.59% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.30% A | 2.30% | 2.34% | 2.34% | 2.34% | 2.58% |
Expenses net of fee waivers, if any | 2.30% A | 2.30% | 2.34% | 2.34% | 2.34% | 2.35% |
Expenses net of all reductions | 2.23% A | 2.24% | 2.28% | 2.29% | 2.29% | 2.24% |
Net investment income (loss) | (.29)% A | (.15)% | (.05)% | .19% | (.39)% | (.24)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 111,086 | $ 106,711 | $ 83,939 | $ 44,878 | $ 104,885 | $ 42,805 |
Portfolio turnover rate G | 118% A | 86% | 85% | 61% | 48% | 48% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 23.87 | $ 19.29 | $ 12.71 | $ 33.02 | $ 19.34 | $ 13.80 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .09 | .20 | .15 | .31 | .18 | .14 |
Net realized and unrealized gain (loss) | 2.22 | 4.62 | 6.65 | (19.76) | 13.55 | 5.49 |
Total from investment operations | 2.31 | 4.82 | 6.80 | (19.45) | 13.73 | 5.63 |
Distributions from net investment income | (.20) | (.11) | (.23) | (.09) | (.06) | (.11) |
Distributions from net realized gain | (.13) | (.13) | - | (.79) | - | - |
Total distributions | (.33) | (.24) | (.23) | (.88) | (.06) | (.11) |
Redemption fees added to paid in capital D | - H | - H | .01 | .02 | .01 | .02 |
Net asset value, end of period | $ 25.85 | $ 23.87 | $ 19.29 | $ 12.71 | $ 33.02 | $ 19.34 |
Total Return B, C | 9.75% | 25.15% | 54.97% | (60.42)% | 71.23% | 41.11% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | 1.23% A | 1.22% | 1.30% | 1.27% | 1.25% | 1.47% |
Expenses net of fee waivers, if any | 1.23% A | 1.22% | 1.30% | 1.27% | 1.25% | 1.35% |
Expenses net of all reductions | 1.16% A | 1.17% | 1.23% | 1.21% | 1.19% | 1.24% |
Net investment income (loss) | .78% A | .93% | .99% | 1.26% | .71% | .75% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 172,457 | $ 184,789 | $ 106,713 | $ 47,557 | $ 52,011 | $ 9,172 |
Portfolio turnover rate F | 118% A | 86% | 85% | 61% | 48% | 48% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2011 (Unaudited)
1. Organization.
Fidelity Advisor Emerging Markets Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. The Fund's investments in Emerging Markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, passive foreign investment companies (PFIC), capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 165,078,713 |
Gross unrealized depreciation | (8,729,300) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 156,349,413 |
Tax cost | $ 579,693,651 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure
Semiannual Report
3. Significant Accounting Policies - continued
New Accounting Pronouncement - continued
Requirements in U.S. GAAP and IFRSs. The update changes the wording used to describe the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. The update is effective during interim and annual periods beginning after December 15, 2011. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $415,052,839 and $473,153,855, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (FMR) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .55% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .81% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
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 | 0% | .25% | $ 366,683 | $ 15,331 |
Class T | .25% | .25% | 259,622 | 3,386 |
Class B | .75% | .25% | 152,795 | 115,563 |
Class C | .75% | .25% | 545,964 | 104,822 |
| | | $ 1,325,064 | $ 239,102 |
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% to 1% for Class B, 1% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares. For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 64,736 |
Class T | 14,450 |
Class B* | 30,688 |
Class C* | 5,906 |
| $ 115,780 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
6. 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 | $ 445,549 | .30 |
Class T | 161,097 | .31 |
Class B | 46,829 | .31 |
Class C | 160,589 | .29 |
Institutional Class | 204,789 | .23 |
| $ 1,018,853 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $159 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average
Interest Rate | Interest
Expense |
Borrower | $ 3,769,842 | .38% | $ 759 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $1,262 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. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $232,347 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 $178.
9. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and 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 $177,419. During the period, there were no securities loaned to FCM.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
From net investment income | | |
Class A | $ 1,359,820 | $ 823,941 |
Class T | 162,958 | 194,714 |
Class B | 6,606 | - |
Class C | 23,592 | - |
Institutional Class | 1,584,568 | 595,478 |
Total | $ 3,137,544 | $ 1,614,133 |
Semiannual Report
10. Distributions to Shareholders - continued
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
From net realized gain | | |
Class A | $ 1,530,131 | $ 1,543,065 |
Class T | 550,254 | 631,634 |
Class B | 33,415 | 170,009 |
Class C | 232,626 | 588,609 |
Institutional Class | 990,345 | 747,157 |
Total | $ 3,336,771 | $ 3,680,474 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 | Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
Class A | | | | |
Shares sold | 1,880,219 | 4,968,910 | $ 45,384,307 | $ 104,602,234 |
Reinvestment of distributions | 111,230 | 108,006 | 2,675,569 | 2,258,405 |
Shares redeemed | (2,442,869) | (4,235,043) | (58,930,153) | (87,859,971) |
Net increase (decrease) | (451,420) | 841,873 | $ (10,870,277) | $ 19,000,668 |
Class T | | | | |
Shares sold | 570,046 | 1,526,646 | $ 13,720,446 | $ 32,084,382 |
Reinvestment of distributions | 28,248 | 38,153 | 678,403 | 796,254 |
Shares redeemed | (925,411) | (1,685,925) | (22,134,435) | (34,798,827) |
Net increase (decrease) | (327,117) | (121,126) | $ (7,735,586) | $ (1,918,191) |
Class B | | | | |
Shares sold | 54,428 | 284,855 | $ 1,281,876 | $ 5,842,113 |
Reinvestment of distributions | 1,377 | 7,131 | 32,616 | 146,541 |
Shares redeemed | (194,959) | (412,420) | (4,603,676) | (8,414,002) |
Net increase (decrease) | (139,154) | (120,434) | $ (3,289,184) | $ (2,425,348) |
Class C | | | | |
Shares sold | 663,032 | 1,416,872 | $ 15,676,157 | $ 29,287,955 |
Reinvestment of distributions | 9,045 | 24,169 | 213,702 | 496,184 |
Shares redeemed | (876,569) | (1,291,795) | (20,572,515) | (26,390,410) |
Net increase (decrease) | (204,492) | 149,246 | $ (4,682,656) | $ 3,393,729 |
Institutional Class | | | | |
Shares sold | 1,453,419 | 4,771,525 | $ 34,848,592 | $ 100,570,593 |
Reinvestment of distributions | 73,837 | 25,873 | 1,781,182 | 542,822 |
Shares redeemed | (2,598,151) | (2,586,784) | (62,323,979) | (54,324,513) |
Net increase (decrease) | (1,070,895) | 2,210,614 | $ (25,694,205) | $ 46,788,902 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
FIL Investments (Japan) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investment Advisors (UK) Limited
FIL Investment Advisors
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
FAEMI-USAN-0611
1.800640.107
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Europe Capital Appreciation
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning
Account Value
November 1, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010
to April 30, 2011 |
Class A | 1.45% | | | |
Actual | | $ 1,000.00 | $ 1,153.70 | $ 7.74 |
HypotheticalA | | $ 1,000.00 | $ 1,017.60 | $ 7.25 |
Class T | 1.70% | | | |
Actual | | $ 1,000.00 | $ 1,152.40 | $ 9.07 |
HypotheticalA | | $ 1,000.00 | $ 1,016.36 | $ 8.50 |
Class B | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,149.80 | $ 11.73 |
HypotheticalA | | $ 1,000.00 | $ 1,013.88 | $ 10.99 |
Class C | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,148.70 | $ 11.72 |
HypotheticalA | | $ 1,000.00 | $ 1,013.88 | $ 10.99 |
Institutional Class | 1.20% | | | |
Actual | | $ 1,000.00 | $ 1,155.10 | $ 6.41 |
HypotheticalA | | $ 1,000.00 | $ 1,018.84 | $ 6.01 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Royal Dutch Shell PLC Class A (United Kingdom) (United Kingdom, Oil, Gas & Consumable Fuels) | 3.5 | 3.2 |
Banco Santander SA (Spain, Commercial Banks) | 2.4 | 2.3 |
Vodafone Group PLC (United Kingdom, Wireless Telecommunication Services) | 2.3 | 2.5 |
Siemens AG (Germany, Industrial Conglomerates) | 2.2 | 1.9 |
Gestevision Telecinco SA (Spain, Media) | 2.1 | 1.5 |
| 12.5 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 20.0 | 21.2 |
Financials | 19.9 | 18.9 |
Energy | 12.7 | 11.2 |
Industrials | 11.6 | 11.3 |
Materials | 11.4 | 10.0 |
Top Five Countries as of April 30, 2011 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 29.2 | 30.0 |
France | 15.2 | 13.0 |
Germany | 10.0 | 10.0 |
Spain | 7.4 | 4.8 |
Switzerland | 5.0 | 9.5 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011 | As of October 31, 2010 |
| Stocks 99.9% | | | Stocks 99.6% | |
| Short-Term
Investments and
Net Other Assets 0.1% | | | Short-Term
Investments and
Net Other Assets 0.4% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.2% |
| Shares | | Value |
Bailiwick of Jersey - 2.9% |
Charter International PLC | 7,800 | | $ 106,969 |
Experian PLC | 15,600 | | 210,160 |
Randgold Resources Ltd. sponsored ADR | 1,800 | | 155,826 |
Shire PLC | 7,890 | | 244,854 |
TOTAL BAILIWICK OF JERSEY | | 717,809 |
Belgium - 0.8% |
Anheuser-Busch InBev SA NV (strip VVPR) (a) | 6,080 | | 27 |
Umicore SA | 3,395 | | 194,735 |
TOTAL BELGIUM | | 194,762 |
Bermuda - 0.5% |
Huabao International Holdings Ltd. | 77,000 | | 114,217 |
Canada - 1.7% |
First Quantum Minerals Ltd. | 1,400 | | 199,516 |
Petrobank Energy & Resources Ltd. | 1,600 | | 33,857 |
Suncor Energy, Inc. | 2,600 | | 119,846 |
Uranium One, Inc. | 18,300 | | 76,210 |
TOTAL CANADA | | 429,429 |
Cayman Islands - 0.6% |
E-Commerce China Dangdang, Inc. ADR | 700 | | 16,107 |
Hengdeli Holdings Ltd. | 236,000 | | 141,303 |
TOTAL CAYMAN ISLANDS | | 157,410 |
China - 0.6% |
Baidu.com, Inc. sponsored ADR (a) | 1,100 | | 163,372 |
Denmark - 3.3% |
Carlsberg A/S Series B | 1,600 | | 190,034 |
FLSmidth & Co. A/S | 1,200 | | 108,205 |
Novo Nordisk A/S Series B | 3,337 | | 422,459 |
Pandora A/S (d) | 2,200 | | 99,100 |
TOTAL DENMARK | | 819,798 |
Finland - 1.3% |
Fortum Corp. | 3,600 | | 124,030 |
Nokian Tyres PLC | 3,700 | | 191,815 |
TOTAL FINLAND | | 315,845 |
France - 15.2% |
Alstom SA | 4,478 | | 297,780 |
Arkema SA | 1,800 | | 187,564 |
Common Stocks - continued |
| Shares | | Value |
France - continued |
Atos Origin SA (a) | 2,648 | | $ 163,184 |
AXA SA (d) | 11,400 | | 255,818 |
BNP Paribas SA | 5,069 | | 401,163 |
Club Mediterranee SA (a) | 3,300 | | 76,912 |
Compagnie Generale de Geophysique SA (a) | 2,600 | | 91,596 |
Danone | 3,700 | | 271,035 |
Iliad Group SA | 1,257 | | 161,592 |
L'Oreal SA | 2,400 | | 304,333 |
LVMH Moet Hennessy - Louis Vuitton | 1,609 | | 288,969 |
Natixis SA | 24,600 | | 141,450 |
PPR SA | 1,700 | | 304,053 |
Publicis Groupe SA | 3,100 | | 175,679 |
Remy Cointreau SA | 1,423 | | 117,275 |
Safran SA | 4,100 | | 159,111 |
Schneider Electric SA (d) | 1,637 | | 289,270 |
VINCI SA | 1,600 | | 106,883 |
TOTAL FRANCE | | 3,793,667 |
Germany - 8.3% |
adidas AG | 2,200 | | 163,779 |
Fresenius Medical Care AG & Co. KGaA | 2,200 | | 172,903 |
HeidelbergCement AG | 2,800 | | 214,128 |
Infineon Technologies AG | 8,800 | | 99,897 |
Kabel Deutschland Holding AG (a) | 3,200 | | 199,998 |
Linde AG | 1,133 | | 204,069 |
MAN SE | 1,546 | | 215,460 |
SAP AG | 4,099 | | 264,108 |
Siemens AG | 3,801 | | 552,983 |
TOTAL GERMANY | | 2,087,325 |
Italy - 4.6% |
Enel SpA | 48,275 | | 344,225 |
Fiat Industrial SpA (a) | 13,700 | | 203,533 |
Fiat SpA | 8,800 | | 93,914 |
Intesa Sanpaolo SpA | 76,758 | | 254,902 |
Prysmian SpA | 4,000 | | 94,382 |
Saipem SpA | 2,865 | | 162,659 |
TOTAL ITALY | | 1,153,615 |
Luxembourg - 0.7% |
ArcelorMittal SA (Netherlands) | 4,700 | | 173,698 |
Common Stocks - continued |
| Shares | | Value |
Netherlands - 3.0% |
AEGON NV (a) | 29,900 | | $ 237,666 |
ASML Holding NV (Netherlands) | 3,100 | | 129,219 |
ING Groep NV (Certificaten Van Aandelen) (a) | 20,800 | | 274,033 |
LyondellBasell Industries NV Class A | 2,600 | | 115,700 |
TOTAL NETHERLANDS | | 756,618 |
Norway - 3.0% |
Aker Solutions ASA | 8,400 | | 202,701 |
DnB NOR ASA | 8,000 | | 130,071 |
Storebrand ASA (A Shares) | 40,500 | | 420,721 |
TOTAL NORWAY | | 753,493 |
Poland - 0.5% |
Eurocash SA | 10,200 | | 124,880 |
Russia - 3.2% |
Magnit OJSC GDR (Reg. S) | 5,200 | | 145,600 |
Magnitogorsk Iron & Steel Works OJSC unit | 6,600 | | 82,896 |
Mechel Steel Group OAO sponsored ADR | 4,100 | | 117,137 |
OAO Gazprom sponsored ADR | 15,200 | | 259,312 |
Sberbank (Savings Bank of the Russian Federation) GDR | 300 | | 119,644 |
Uralkali JSC GDR (Reg. S) | 1,900 | | 79,743 |
TOTAL RUSSIA | | 804,332 |
South Africa - 0.8% |
Barloworld Ltd. | 6,100 | | 69,184 |
Mr Price Group Ltd. | 12,500 | | 127,878 |
TOTAL SOUTH AFRICA | | 197,062 |
Spain - 7.4% |
Banco Santander SA | 46,246 | | 590,603 |
Gestevision Telecinco SA | 46,785 | | 525,764 |
Inditex SA | 3,149 | | 282,377 |
Telefonica SA | 17,267 | | 463,896 |
TOTAL SPAIN | | 1,862,640 |
Sweden - 2.1% |
Elekta AB (B Shares) | 1,900 | | 86,582 |
Swedbank AB (A Shares) | 7,705 | | 146,106 |
Telefonaktiebolaget LM Ericsson (B Shares) | 18,703 | | 283,741 |
TOTAL SWEDEN | | 516,429 |
Switzerland - 5.0% |
Compagnie Financiere Richemont SA Series A | 4,804 | | 310,401 |
Common Stocks - continued |
| Shares | | Value |
Switzerland - continued |
Schindler Holding AG (participation certificate) | 1,323 | | $ 171,119 |
The Swatch Group AG (Bearer) | 530 | | 260,666 |
Transocean Ltd. (a) | 1,900 | | 138,225 |
UBS AG (a) | 18,294 | | 366,046 |
TOTAL SWITZERLAND | | 1,246,457 |
United Kingdom - 29.2% |
Aviva PLC | 22,400 | | 167,646 |
BG Group PLC | 18,753 | | 480,369 |
BHP Billiton PLC | 7,346 | | 310,599 |
BP PLC | 46,600 | | 358,238 |
BP PLC sponsored ADR | 3,600 | | 166,104 |
British Land Co. PLC | 16,396 | | 164,464 |
British Sky Broadcasting Group PLC | 9,200 | | 129,396 |
Burberry Group PLC | 11,400 | | 246,601 |
Carphone Warehouse Group PLC (a) | 55,250 | | 367,082 |
Cookson Group PLC | 10,900 | | 130,274 |
Filtrona PLC | 15,400 | | 88,491 |
Fresnillo PLC | 4,300 | | 117,868 |
HSBC Holdings PLC sponsored ADR (d) | 7,862 | | 428,243 |
International Personal Finance PLC | 17,200 | | 105,586 |
Kazakhmys PLC | 5,100 | | 117,478 |
Kesa Electricals PLC | 41,200 | | 88,778 |
Lloyds Banking Group PLC (a) | 227,200 | | 225,584 |
Micro Focus International PLC | 32,900 | | 204,162 |
Misys PLC | 28,000 | | 147,610 |
Morgan Crucible Co. PLC | 34,000 | | 176,060 |
Next PLC | 2,300 | | 85,944 |
Prudential PLC | 31,769 | | 411,021 |
Reckitt Benckiser Group PLC | 4,600 | | 255,411 |
Royal Dutch Shell PLC Class A (United Kingdom) | 22,817 | | 885,188 |
Sage Group PLC | 19,900 | | 94,737 |
Schroders PLC | 3,800 | | 120,476 |
SuperGroup PLC (a) | 4,400 | | 116,567 |
Taylor Wimpey PLC (a) | 107,400 | | 69,805 |
Vodafone Group PLC | 202,700 | | 585,983 |
Wolfson Microelectronics PLC (a) | 26,100 | | 104,198 |
Xstrata PLC | 13,500 | | 343,104 |
TOTAL UNITED KINGDOM | | 7,293,067 |
Common Stocks - continued |
| Shares | | Value |
United States of America - 3.5% |
Agilent Technologies, Inc. (a) | 2,800 | | $ 139,748 |
Apple, Inc. (a) | 400 | | 139,292 |
Halliburton Co. | 2,100 | | 106,008 |
Mead Johnson Nutrition Co. Class A | 2,100 | | 140,448 |
Noble Energy, Inc. | 1,000 | | 96,270 |
Resolute Energy Corp. (a) | 2,100 | | 37,149 |
Virgin Media, Inc. | 7,300 | | 220,898 |
TOTAL UNITED STATES OF AMERICA | | 879,813 |
TOTAL COMMON STOCKS (Cost $20,107,279) | 24,555,738 |
Nonconvertible Preferred Stocks - 1.7% |
| | | |
Germany - 1.7% |
ProSiebenSat.1 Media AG | 6,300 | | 180,426 |
Volkswagen AG | 1,300 | | 256,099 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $286,856) | 436,525 |
Money Market Funds - 4.3% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 2,583 | | 2,583 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 1,061,314 | | 1,061,314 |
TOTAL MONEY MARKET FUNDS (Cost $1,063,897) | 1,063,897 |
TOTAL INVESTMENT PORTFOLIO - 104.2% (Cost $21,458,032) | | 26,056,160 |
NET OTHER ASSETS (LIABILITIES) - (4.2)% | | (1,048,594) |
NET ASSETS - 100% | $ 25,007,566 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 414 |
Fidelity Securities Lending Cash Central Fund | 3,775 |
Total | $ 4,189 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
United Kingdom | $ 7,293,067 | $ 5,233,996 | $ 2,059,071 | $ - |
France | 3,793,667 | 3,702,071 | 91,596 | - |
Germany | 2,523,850 | 2,523,850 | - | - |
Spain | 1,862,640 | 1,398,744 | 463,896 | - |
Switzerland | 1,246,457 | 880,411 | 366,046 | - |
Italy | 1,153,615 | 1,153,615 | - | - |
United States of America | 879,813 | 879,813 | - | - |
Denmark | 819,798 | 397,339 | 422,459 | - |
Russia | 804,332 | 804,332 | - | - |
Other | 4,615,024 | 3,271,813 | 1,343,211 | - |
Money Market Funds | 1,063,897 | 1,063,897 | - | - |
Total Investments in Securities: | $ 26,056,160 | $ 21,309,881 | $ 4,746,279 | $ - |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $19,126,506 of which $11,081,881 and $8,044,625 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $1,006,469) - See accompanying schedule: Unaffiliated issuers (cost $20,394,135) | $ 24,992,263 | |
Fidelity Central Funds (cost $1,063,897) | 1,063,897 | |
Total Investments (cost $21,458,032) | | $ 26,056,160 |
Cash | | 47,453 |
Foreign currency held at value (cost $2,577) | | 2,581 |
Receivable for investments sold | | 365,296 |
Receivable for fund shares sold | | 5,114 |
Dividends receivable | | 80,225 |
Distributions receivable from Fidelity Central Funds | | 137 |
Prepaid expenses | | 23 |
Receivable from investment adviser for expense reductions | | 9,874 |
Other receivables | | 3,059 |
Total assets | | 26,569,922 |
| | |
Liabilities | | |
Payable for investments purchased | $ 390,594 | |
Payable for fund shares redeemed | 31,575 | |
Accrued management fee | 14,351 | |
Distribution and service plan fees payable | 9,659 | |
Other affiliated payables | 6,881 | |
Other payables and accrued expenses | 47,982 | |
Collateral on securities loaned, at value | 1,061,314 | |
Total liabilities | | 1,562,356 |
| | |
Net Assets | | $ 25,007,566 |
Net Assets consist of: | | |
Paid in capital | | $ 38,274,065 |
Undistributed net investment income | | 32,191 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (17,879,741) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 4,581,051 |
Net Assets | | $ 25,007,566 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share ($10,769,653 ÷ 798,772 shares) | | $ 13.48 |
| | |
Maximum offering price per share (100/94.25 of $13.48) | | $ 14.30 |
Class T:
Net Asset Value and redemption price per share ($7,934,771 ÷ 590,715 shares) | | $ 13.43 |
| | |
Maximum offering price per share (100/96.50 of $13.43) | | $ 13.92 |
Class B:
Net Asset Value and offering price per share ($1,718,008 ÷ 131,662 shares) A | | $ 13.05 |
| | |
Class C:
Net Asset Value and offering price per share ($3,511,072 ÷ 270,398 shares) A | | $ 12.98 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,074,062 ÷ 78,143 shares) | | $ 13.74 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 251,039 |
Interest | | 2 |
Income from Fidelity Central Funds | | 4,189 |
Income before foreign taxes withheld | | 255,230 |
Less foreign taxes withheld | | (23,773) |
Total income | | 231,457 |
| | |
Expenses | | |
Management fee | $ 83,661 | |
Transfer agent fees | 36,933 | |
Distribution and service plan fees | 57,489 | |
Accounting and security lending fees | 6,194 | |
Custodian fees and expenses | 21,203 | |
Independent trustees' compensation | 59 | |
Registration fees | 58,010 | |
Audit | 25,923 | |
Legal | 44 | |
Miscellaneous | 119 | |
Total expenses before reductions | 289,635 | |
Expense reductions | (93,808) | 195,827 |
Net investment income (loss) | | 35,630 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 1,656,046 | |
Foreign currency transactions | 2,533 | |
Total net realized gain (loss) | | 1,658,579 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 1,701,498 | |
Assets and liabilities in foreign currencies | (1,712) | |
Total change in net unrealized appreciation (depreciation) | | 1,699,786 |
Net gain (loss) | | 3,358,365 |
Net increase (decrease) in net assets resulting from operations | | $ 3,393,995 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 35,630 | $ 84,988 |
Net realized gain (loss) | 1,658,579 | 322,052 |
Change in net unrealized appreciation (depreciation) | 1,699,786 | 1,507,133 |
Net increase (decrease) in net assets resulting
from operations | 3,393,995 | 1,914,173 |
Distributions to shareholders from net investment income | (69,262) | (281,171) |
Share transactions - net increase (decrease) | (1,526,984) | (4,178,483) |
Redemption fees | 49 | 436 |
Total increase (decrease) in net assets | 1,797,798 | (2,545,045) |
| | |
Net Assets | | |
Beginning of period | 23,209,768 | 25,754,813 |
End of period (including undistributed net investment income of $32,191 and undistributed net investment income of $65,823, respectively) | $ 25,007,566 | $ 23,209,768 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.74 | $ 10.82 | $ 8.98 | $ 20.94 | $ 17.49 | $ 13.47 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 | .06 | .15 | .25 | .32 | .19 H |
Net realized and unrealized gain (loss) | 1.77 | .99 | 1.99 | (9.22) | 4.48 | 4.18 |
Total from investment operations | 1.80 | 1.05 | 2.14 | (8.97) | 4.80 | 4.37 |
Distributions from net investment income | (.06) | (.13) | (.30) | (.31) | (.12) | (.13) |
Distributions from net realized gain | - | - | - | (2.68) | (1.23) | (.22) |
Total distributions | (.06) | (.13) | (.30) | (2.99) | (1.35) | (.35) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 13.48 | $ 11.74 | $ 10.82 | $ 8.98 | $ 20.94 | $ 17.49 |
Total Return B, C, D | 15.37% | 9.74% | 25.27% | (49.77)% | 29.16% | 33.17% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.21% A | 2.05% | 2.00% | 1.63% | 1.53% | 1.81% |
Expenses net of fee waivers, if any | 1.45% A | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% |
Expenses net of all reductions | 1.42% A | 1.43% | 1.46% | 1.46% | 1.46% | 1.40% |
Net investment income (loss) | .54% A | .61% | 1.73% | 1.65% | 1.69% | 1.16% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $10,770 | $ 10,276 | $ 10,904 | $ 10,286 | $ 29,273 | $ 18,972 |
Portfolio turnover rate G | 96% A | 143% | 109% | 112% | 173% | 173% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.08 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .68%. 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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.68 | $ 10.78 | $ 8.92 | $ 20.75 | $ 17.35 | $ 13.34 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .04 | .13 | .21 | .27 | .14 H |
Net realized and unrealized gain (loss) | 1.76 | .97 | 1.99 | (9.17) | 4.44 | 4.17 |
Total from investment operations | 1.78 | 1.01 | 2.12 | (8.96) | 4.71 | 4.31 |
Distributions from net investment income | (.03) | (.11) | (.26) | (.19) | (.08) | (.08) |
Distributions from net realized gain | - | - | - | (2.68) | (1.23) | (.22) |
Total distributions | (.03) | (.11) | (.26) | (2.87) | (1.31) | (.30) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 13.43 | $ 11.68 | $ 10.78 | $ 8.92 | $ 20.75 | $ 17.35 |
Total Return B, C, D | 15.24% | 9.42% | 24.99% | (49.91)% | 28.86% | 32.95% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.48% A | 2.34% | 2.28% | 1.88% | 1.80% | 2.07% |
Expenses net of fee waivers, if any | 1.70% A | 1.75% | 1.75% | 1.75% | 1.75% | 1.75% |
Expenses net of all reductions | 1.67% A | 1.67% | 1.71% | 1.71% | 1.71% | 1.65% |
Net investment income (loss) | .29% A | .36% | 1.48% | 1.40% | 1.44% | .91% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 7,935 | $ 7,496 | $ 8,014 | $ 7,866 | $ 21,357 | $ 24,643 |
Portfolio turnover rate G | 96% A | 143% | 109% | 112% | 173% | 173% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.08 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .43%. 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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.35 | $ 10.48 | $ 8.61 | $ 20.16 | $ 16.91 | $ 12.98 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.01) | .08 | .13 | .17 | .06 H |
Net realized and unrealized gain (loss) | 1.71 | .94 | 1.95 | (8.86) | 4.34 | 4.10 |
Total from investment operations | 1.70 | .93 | 2.03 | (8.73) | 4.51 | 4.16 |
Distributions from net investment income | - | (.06) | (.16) | (.14) | (.03) | (.01) |
Distributions from net realized gain | - | - | - | (2.68) | (1.23) | (.22) |
Total distributions | - | (.06) | (.16) | (2.82) | (1.26) | (.23) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 13.05 | $ 11.35 | $ 10.48 | $ 8.61 | $ 20.16 | $ 16.91 |
Total Return B, C, D | 14.98% | 8.87% | 24.34% | (50.13)% | 28.29% | 32.49% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.98% A | 2.82% | 2.77% | 2.39% | 2.31% | 2.69% |
Expenses net of fee waivers, if any | 2.20% A | 2.25% | 2.25% | 2.25% | 2.25% | 2.25% |
Expenses net of all reductions | 2.17% A | 2.18% | 2.21% | 2.21% | 2.21% | 2.15% |
Net investment income (loss) | (.21)% A | (.14)% | .98% | .90% | .94% | .41% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,718 | $ 1,935 | $ 2,490 | $ 2,806 | $ 11,206 | $ 8,529 |
Portfolio turnover rate G | 96% A | 143% | 109% | 112% | 173% | 173% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.07)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.30 | $ 10.43 | $ 8.58 | $ 20.10 | $ 16.89 | $ 13.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.01) | .08 | .13 | .17 | .06 H |
Net realized and unrealized gain (loss) | 1.69 | .94 | 1.94 | (8.82) | 4.32 | 4.07 |
Total from investment operations | 1.68 | .93 | 2.02 | (8.69) | 4.49 | 4.13 |
Distributions from net investment income | - | (.06) | (.17) | (.15) | (.05) | (.02) |
Distributions from net realized gain | - | - | - | (2.68) | (1.23) | (.22) |
Total distributions | - | (.06) | (.17) | (2.83) | (1.28) | (.24) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 12.98 | $ 11.30 | $ 10.43 | $ 8.58 | $ 20.10 | $ 16.89 |
Total Return B, C, D | 14.87% | 8.92% | 24.29% | (50.11)% | 28.21% | 32.25% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.95% A | 2.82% | 2.77% | 2.38% | 2.26% | 2.57% |
Expenses net of fee waivers, if any | 2.20% A | 2.25% | 2.25% | 2.25% | 2.25% | 2.25% |
Expenses net of all reductions | 2.17% A | 2.18% | 2.21% | 2.21% | 2.21% | 2.15% |
Net investment income (loss) | (.21)% A | (.14)% | .98% | .90% | .94% | .41% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 3,511 | $ 3,166 | $ 3,913 | $ 4,522 | $ 16,084 | $ 9,173 |
Portfolio turnover rate G | 96% A | 143% | 109% | 112% | 173% | 173% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.07)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.98 | $ 11.03 | $ 9.13 | $ 21.27 | $ 17.72 | $ 13.63 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .05 | .09 | .18 | .30 | .38 | .23 G |
Net realized and unrealized gain (loss) | 1.80 | 1.01 | 2.03 | (9.38) | 4.54 | 4.25 |
Total from investment operations | 1.85 | 1.10 | 2.21 | (9.08) | 4.92 | 4.48 |
Distributions from net investment income | (.09) | (.15) | (.31) | (.38) | (.14) | (.17) |
Distributions from net realized gain | - | - | - | (2.68) | (1.23) | (.22) |
Total distributions | (.09) | (.15) | (.31) | (3.06) | (1.37) | (.39) |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 13.74 | $ 11.98 | $ 11.03 | $ 9.13 | $ 21.27 | $ 17.72 |
Total Return B, C | 15.51% | 10.00% | 25.57% | (49.63)% | 29.57% | 33.68% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | 1.75% A | 1.80% | 1.68% | 1.27% | 1.19% | 1.46% |
Expenses net of fee waivers, if any | 1.20% A | 1.25% | 1.25% | 1.25% | 1.19% | 1.25% |
Expenses net of all reductions | 1.17% A | 1.17% | 1.21% | 1.21% | 1.15% | 1.15% |
Net investment income (loss) | .79% A | .86% | 1.98% | 1.90% | 2.00% | 1.41% G |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,074 | $ 336 | $ 434 | $ 378 | $ 1,738 | $ 1,331 |
Portfolio turnover rate F | 96% A | 143% | 109% | 112% | 173% | 173% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.08 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .93%. 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, 2011 (Unaudited)
1. Organization.
Fidelity Advisor Europe Capital Appreciation Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
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
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, 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 | $ 4,977,598 |
Gross unrealized depreciation | (696,379) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 4,281,219 |
| |
Tax cost | $ 21,774,941 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
3. Significant Accounting Policies - continued
New Accounting Pronouncement. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update changes the wording used to describe the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. The update is effective during interim and annual periods beginning after December 15, 2011. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $11,099,724 and $12,541,677, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .71% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | 0% | .25% | $ 13,077 | $ 266 |
Class T | .25% | .25% | 18,918 | 223 |
Class B | .75% | .25% | 9,073 | 6,860 |
Class C | .75% | .25% | 16,421 | 1,462 |
| | | $ 57,489 | $ 8,811 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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% to 1% for Class B, 1% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 1,264 |
Class T | 957 |
Class B* | 2,593 |
Class C* | 164 |
| $ 4,978 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 16,183 | .31 |
Class T | 12,393 | .33 |
Class B | 2,804 | .31 |
Class C | 5,048 | .31 |
Institutional Class | 505 | .18 |
| $ 36,933 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the 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. The commissions paid to these affiliated firms were $61 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $41 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. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and 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 $3,775. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.45% | $ 39,575 |
Class T | 1.70% | 29,656 |
Class B | 2.20% | 7,116 |
Class C | 2.20% | 12,384 |
Institutional Class | 1.20% | 1,511 |
| | $ 90,242 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $3,566 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
From net investment income | | |
Class A | $ 48,533 | $ 132,405 |
Class T | 17,367 | 105,744 |
Class B | - | 13,563 |
Class C | - | 22,327 |
Institutional Class | 3,362 | 7,132 |
Total | $ 69,262 | $ 281,171 |
Semiannual Report
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months
ended April 30,
2011 | Year ended
October 31,
2010 | Six months
ended April 30,
2011 | Year ended
October 31,
2010 |
Class A | | | | |
Shares sold | 57,558 | 127,568 | $ 709,105 | $ 1,411,611 |
Reinvestment of distributions | 3,553 | 10,457 | 42,460 | 119,629 |
Shares redeemed | (137,631) | (270,495) | (1,698,665) | (2,873,077) |
Net increase (decrease) | (76,520) | (132,470) | $ (947,100) | $ (1,341,837) |
Class T | | | | |
Shares sold | 41,836 | 285,617 | $ 513,365 | $ 3,265,728 |
Reinvestment of distributions | 1,416 | 8,986 | 16,884 | 102,440 |
Shares redeemed | (94,157) | (396,557) | (1,155,019) | (4,398,721) |
Net increase (decrease) | (50,905) | (101,954) | $ (624,770) | $ (1,030,553) |
Class B | | | | |
Shares sold | 1,625 | 16,071 | $ 18,940 | $ 167,235 |
Reinvestment of distributions | - | 1,085 | - | 12,073 |
Shares redeemed | (40,459) | (84,324) | (486,864) | (867,232) |
Net increase (decrease) | (38,834) | (67,168) | $ (467,924) | $ (687,924) |
Class C | | | | |
Shares sold | 24,582 | 36,176 | $ 291,565 | $ 385,078 |
Reinvestment of distributions | - | 1,719 | - | 19,047 |
Shares redeemed | (34,507) | (132,930) | (410,990) | (1,389,265) |
Net increase (decrease) | (9,925) | (95,035) | $ (119,425) | $ (985,140) |
Institutional Class | | | | |
Shares sold | 53,431 | 21,917 | $ 673,475 | $ 240,660 |
Reinvestment of distributions | 124 | 430 | 1,508 | 5,009 |
Shares redeemed | (3,460) | (33,643) | (42,748) | (378,698) |
Net increase (decrease) | 50,095 | (11,296) | $ 632,235 | $ (133,029) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
FIL Investment Advisors
FIL Investment Advisors (U.K.) Limited
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
AEUR-USAN-0611
1.784875.108
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Europe Capital Appreciation
Fund - Institutional Class
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning
Account Value
November 1, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010
to April 30, 2011 |
Class A | 1.45% | | | |
Actual | | $ 1,000.00 | $ 1,153.70 | $ 7.74 |
HypotheticalA | | $ 1,000.00 | $ 1,017.60 | $ 7.25 |
Class T | 1.70% | | | |
Actual | | $ 1,000.00 | $ 1,152.40 | $ 9.07 |
HypotheticalA | | $ 1,000.00 | $ 1,016.36 | $ 8.50 |
Class B | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,149.80 | $ 11.73 |
HypotheticalA | | $ 1,000.00 | $ 1,013.88 | $ 10.99 |
Class C | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,148.70 | $ 11.72 |
HypotheticalA | | $ 1,000.00 | $ 1,013.88 | $ 10.99 |
Institutional Class | 1.20% | | | |
Actual | | $ 1,000.00 | $ 1,155.10 | $ 6.41 |
HypotheticalA | | $ 1,000.00 | $ 1,018.84 | $ 6.01 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Royal Dutch Shell PLC Class A (United Kingdom) (United Kingdom, Oil, Gas & Consumable Fuels) | 3.5 | 3.2 |
Banco Santander SA (Spain, Commercial Banks) | 2.4 | 2.3 |
Vodafone Group PLC (United Kingdom, Wireless Telecommunication Services) | 2.3 | 2.5 |
Siemens AG (Germany, Industrial Conglomerates) | 2.2 | 1.9 |
Gestevision Telecinco SA (Spain, Media) | 2.1 | 1.5 |
| 12.5 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 20.0 | 21.2 |
Financials | 19.9 | 18.9 |
Energy | 12.7 | 11.2 |
Industrials | 11.6 | 11.3 |
Materials | 11.4 | 10.0 |
Top Five Countries as of April 30, 2011 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 29.2 | 30.0 |
France | 15.2 | 13.0 |
Germany | 10.0 | 10.0 |
Spain | 7.4 | 4.8 |
Switzerland | 5.0 | 9.5 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011 | As of October 31, 2010 |
| Stocks 99.9% | | | Stocks 99.6% | |
| Short-Term
Investments and
Net Other Assets 0.1% | | | Short-Term
Investments and
Net Other Assets 0.4% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.2% |
| Shares | | Value |
Bailiwick of Jersey - 2.9% |
Charter International PLC | 7,800 | | $ 106,969 |
Experian PLC | 15,600 | | 210,160 |
Randgold Resources Ltd. sponsored ADR | 1,800 | | 155,826 |
Shire PLC | 7,890 | | 244,854 |
TOTAL BAILIWICK OF JERSEY | | 717,809 |
Belgium - 0.8% |
Anheuser-Busch InBev SA NV (strip VVPR) (a) | 6,080 | | 27 |
Umicore SA | 3,395 | | 194,735 |
TOTAL BELGIUM | | 194,762 |
Bermuda - 0.5% |
Huabao International Holdings Ltd. | 77,000 | | 114,217 |
Canada - 1.7% |
First Quantum Minerals Ltd. | 1,400 | | 199,516 |
Petrobank Energy & Resources Ltd. | 1,600 | | 33,857 |
Suncor Energy, Inc. | 2,600 | | 119,846 |
Uranium One, Inc. | 18,300 | | 76,210 |
TOTAL CANADA | | 429,429 |
Cayman Islands - 0.6% |
E-Commerce China Dangdang, Inc. ADR | 700 | | 16,107 |
Hengdeli Holdings Ltd. | 236,000 | | 141,303 |
TOTAL CAYMAN ISLANDS | | 157,410 |
China - 0.6% |
Baidu.com, Inc. sponsored ADR (a) | 1,100 | | 163,372 |
Denmark - 3.3% |
Carlsberg A/S Series B | 1,600 | | 190,034 |
FLSmidth & Co. A/S | 1,200 | | 108,205 |
Novo Nordisk A/S Series B | 3,337 | | 422,459 |
Pandora A/S (d) | 2,200 | | 99,100 |
TOTAL DENMARK | | 819,798 |
Finland - 1.3% |
Fortum Corp. | 3,600 | | 124,030 |
Nokian Tyres PLC | 3,700 | | 191,815 |
TOTAL FINLAND | | 315,845 |
France - 15.2% |
Alstom SA | 4,478 | | 297,780 |
Arkema SA | 1,800 | | 187,564 |
Common Stocks - continued |
| Shares | | Value |
France - continued |
Atos Origin SA (a) | 2,648 | | $ 163,184 |
AXA SA (d) | 11,400 | | 255,818 |
BNP Paribas SA | 5,069 | | 401,163 |
Club Mediterranee SA (a) | 3,300 | | 76,912 |
Compagnie Generale de Geophysique SA (a) | 2,600 | | 91,596 |
Danone | 3,700 | | 271,035 |
Iliad Group SA | 1,257 | | 161,592 |
L'Oreal SA | 2,400 | | 304,333 |
LVMH Moet Hennessy - Louis Vuitton | 1,609 | | 288,969 |
Natixis SA | 24,600 | | 141,450 |
PPR SA | 1,700 | | 304,053 |
Publicis Groupe SA | 3,100 | | 175,679 |
Remy Cointreau SA | 1,423 | | 117,275 |
Safran SA | 4,100 | | 159,111 |
Schneider Electric SA (d) | 1,637 | | 289,270 |
VINCI SA | 1,600 | | 106,883 |
TOTAL FRANCE | | 3,793,667 |
Germany - 8.3% |
adidas AG | 2,200 | | 163,779 |
Fresenius Medical Care AG & Co. KGaA | 2,200 | | 172,903 |
HeidelbergCement AG | 2,800 | | 214,128 |
Infineon Technologies AG | 8,800 | | 99,897 |
Kabel Deutschland Holding AG (a) | 3,200 | | 199,998 |
Linde AG | 1,133 | | 204,069 |
MAN SE | 1,546 | | 215,460 |
SAP AG | 4,099 | | 264,108 |
Siemens AG | 3,801 | | 552,983 |
TOTAL GERMANY | | 2,087,325 |
Italy - 4.6% |
Enel SpA | 48,275 | | 344,225 |
Fiat Industrial SpA (a) | 13,700 | | 203,533 |
Fiat SpA | 8,800 | | 93,914 |
Intesa Sanpaolo SpA | 76,758 | | 254,902 |
Prysmian SpA | 4,000 | | 94,382 |
Saipem SpA | 2,865 | | 162,659 |
TOTAL ITALY | | 1,153,615 |
Luxembourg - 0.7% |
ArcelorMittal SA (Netherlands) | 4,700 | | 173,698 |
Common Stocks - continued |
| Shares | | Value |
Netherlands - 3.0% |
AEGON NV (a) | 29,900 | | $ 237,666 |
ASML Holding NV (Netherlands) | 3,100 | | 129,219 |
ING Groep NV (Certificaten Van Aandelen) (a) | 20,800 | | 274,033 |
LyondellBasell Industries NV Class A | 2,600 | | 115,700 |
TOTAL NETHERLANDS | | 756,618 |
Norway - 3.0% |
Aker Solutions ASA | 8,400 | | 202,701 |
DnB NOR ASA | 8,000 | | 130,071 |
Storebrand ASA (A Shares) | 40,500 | | 420,721 |
TOTAL NORWAY | | 753,493 |
Poland - 0.5% |
Eurocash SA | 10,200 | | 124,880 |
Russia - 3.2% |
Magnit OJSC GDR (Reg. S) | 5,200 | | 145,600 |
Magnitogorsk Iron & Steel Works OJSC unit | 6,600 | | 82,896 |
Mechel Steel Group OAO sponsored ADR | 4,100 | | 117,137 |
OAO Gazprom sponsored ADR | 15,200 | | 259,312 |
Sberbank (Savings Bank of the Russian Federation) GDR | 300 | | 119,644 |
Uralkali JSC GDR (Reg. S) | 1,900 | | 79,743 |
TOTAL RUSSIA | | 804,332 |
South Africa - 0.8% |
Barloworld Ltd. | 6,100 | | 69,184 |
Mr Price Group Ltd. | 12,500 | | 127,878 |
TOTAL SOUTH AFRICA | | 197,062 |
Spain - 7.4% |
Banco Santander SA | 46,246 | | 590,603 |
Gestevision Telecinco SA | 46,785 | | 525,764 |
Inditex SA | 3,149 | | 282,377 |
Telefonica SA | 17,267 | | 463,896 |
TOTAL SPAIN | | 1,862,640 |
Sweden - 2.1% |
Elekta AB (B Shares) | 1,900 | | 86,582 |
Swedbank AB (A Shares) | 7,705 | | 146,106 |
Telefonaktiebolaget LM Ericsson (B Shares) | 18,703 | | 283,741 |
TOTAL SWEDEN | | 516,429 |
Switzerland - 5.0% |
Compagnie Financiere Richemont SA Series A | 4,804 | | 310,401 |
Common Stocks - continued |
| Shares | | Value |
Switzerland - continued |
Schindler Holding AG (participation certificate) | 1,323 | | $ 171,119 |
The Swatch Group AG (Bearer) | 530 | | 260,666 |
Transocean Ltd. (a) | 1,900 | | 138,225 |
UBS AG (a) | 18,294 | | 366,046 |
TOTAL SWITZERLAND | | 1,246,457 |
United Kingdom - 29.2% |
Aviva PLC | 22,400 | | 167,646 |
BG Group PLC | 18,753 | | 480,369 |
BHP Billiton PLC | 7,346 | | 310,599 |
BP PLC | 46,600 | | 358,238 |
BP PLC sponsored ADR | 3,600 | | 166,104 |
British Land Co. PLC | 16,396 | | 164,464 |
British Sky Broadcasting Group PLC | 9,200 | | 129,396 |
Burberry Group PLC | 11,400 | | 246,601 |
Carphone Warehouse Group PLC (a) | 55,250 | | 367,082 |
Cookson Group PLC | 10,900 | | 130,274 |
Filtrona PLC | 15,400 | | 88,491 |
Fresnillo PLC | 4,300 | | 117,868 |
HSBC Holdings PLC sponsored ADR (d) | 7,862 | | 428,243 |
International Personal Finance PLC | 17,200 | | 105,586 |
Kazakhmys PLC | 5,100 | | 117,478 |
Kesa Electricals PLC | 41,200 | | 88,778 |
Lloyds Banking Group PLC (a) | 227,200 | | 225,584 |
Micro Focus International PLC | 32,900 | | 204,162 |
Misys PLC | 28,000 | | 147,610 |
Morgan Crucible Co. PLC | 34,000 | | 176,060 |
Next PLC | 2,300 | | 85,944 |
Prudential PLC | 31,769 | | 411,021 |
Reckitt Benckiser Group PLC | 4,600 | | 255,411 |
Royal Dutch Shell PLC Class A (United Kingdom) | 22,817 | | 885,188 |
Sage Group PLC | 19,900 | | 94,737 |
Schroders PLC | 3,800 | | 120,476 |
SuperGroup PLC (a) | 4,400 | | 116,567 |
Taylor Wimpey PLC (a) | 107,400 | | 69,805 |
Vodafone Group PLC | 202,700 | | 585,983 |
Wolfson Microelectronics PLC (a) | 26,100 | | 104,198 |
Xstrata PLC | 13,500 | | 343,104 |
TOTAL UNITED KINGDOM | | 7,293,067 |
Common Stocks - continued |
| Shares | | Value |
United States of America - 3.5% |
Agilent Technologies, Inc. (a) | 2,800 | | $ 139,748 |
Apple, Inc. (a) | 400 | | 139,292 |
Halliburton Co. | 2,100 | | 106,008 |
Mead Johnson Nutrition Co. Class A | 2,100 | | 140,448 |
Noble Energy, Inc. | 1,000 | | 96,270 |
Resolute Energy Corp. (a) | 2,100 | | 37,149 |
Virgin Media, Inc. | 7,300 | | 220,898 |
TOTAL UNITED STATES OF AMERICA | | 879,813 |
TOTAL COMMON STOCKS (Cost $20,107,279) | 24,555,738 |
Nonconvertible Preferred Stocks - 1.7% |
| | | |
Germany - 1.7% |
ProSiebenSat.1 Media AG | 6,300 | | 180,426 |
Volkswagen AG | 1,300 | | 256,099 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $286,856) | 436,525 |
Money Market Funds - 4.3% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 2,583 | | 2,583 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 1,061,314 | | 1,061,314 |
TOTAL MONEY MARKET FUNDS (Cost $1,063,897) | 1,063,897 |
TOTAL INVESTMENT PORTFOLIO - 104.2% (Cost $21,458,032) | | 26,056,160 |
NET OTHER ASSETS (LIABILITIES) - (4.2)% | | (1,048,594) |
NET ASSETS - 100% | $ 25,007,566 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 414 |
Fidelity Securities Lending Cash Central Fund | 3,775 |
Total | $ 4,189 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
United Kingdom | $ 7,293,067 | $ 5,233,996 | $ 2,059,071 | $ - |
France | 3,793,667 | 3,702,071 | 91,596 | - |
Germany | 2,523,850 | 2,523,850 | - | - |
Spain | 1,862,640 | 1,398,744 | 463,896 | - |
Switzerland | 1,246,457 | 880,411 | 366,046 | - |
Italy | 1,153,615 | 1,153,615 | - | - |
United States of America | 879,813 | 879,813 | - | - |
Denmark | 819,798 | 397,339 | 422,459 | - |
Russia | 804,332 | 804,332 | - | - |
Other | 4,615,024 | 3,271,813 | 1,343,211 | - |
Money Market Funds | 1,063,897 | 1,063,897 | - | - |
Total Investments in Securities: | $ 26,056,160 | $ 21,309,881 | $ 4,746,279 | $ - |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $19,126,506 of which $11,081,881 and $8,044,625 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $1,006,469) - See accompanying schedule: Unaffiliated issuers (cost $20,394,135) | $ 24,992,263 | |
Fidelity Central Funds (cost $1,063,897) | 1,063,897 | |
Total Investments (cost $21,458,032) | | $ 26,056,160 |
Cash | | 47,453 |
Foreign currency held at value (cost $2,577) | | 2,581 |
Receivable for investments sold | | 365,296 |
Receivable for fund shares sold | | 5,114 |
Dividends receivable | | 80,225 |
Distributions receivable from Fidelity Central Funds | | 137 |
Prepaid expenses | | 23 |
Receivable from investment adviser for expense reductions | | 9,874 |
Other receivables | | 3,059 |
Total assets | | 26,569,922 |
| | |
Liabilities | | |
Payable for investments purchased | $ 390,594 | |
Payable for fund shares redeemed | 31,575 | |
Accrued management fee | 14,351 | |
Distribution and service plan fees payable | 9,659 | |
Other affiliated payables | 6,881 | |
Other payables and accrued expenses | 47,982 | |
Collateral on securities loaned, at value | 1,061,314 | |
Total liabilities | | 1,562,356 |
| | |
Net Assets | | $ 25,007,566 |
Net Assets consist of: | | |
Paid in capital | | $ 38,274,065 |
Undistributed net investment income | | 32,191 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (17,879,741) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 4,581,051 |
Net Assets | | $ 25,007,566 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share ($10,769,653 ÷ 798,772 shares) | | $ 13.48 |
| | |
Maximum offering price per share (100/94.25 of $13.48) | | $ 14.30 |
Class T:
Net Asset Value and redemption price per share ($7,934,771 ÷ 590,715 shares) | | $ 13.43 |
| | |
Maximum offering price per share (100/96.50 of $13.43) | | $ 13.92 |
Class B:
Net Asset Value and offering price per share ($1,718,008 ÷ 131,662 shares) A | | $ 13.05 |
| | |
Class C:
Net Asset Value and offering price per share ($3,511,072 ÷ 270,398 shares) A | | $ 12.98 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,074,062 ÷ 78,143 shares) | | $ 13.74 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 251,039 |
Interest | | 2 |
Income from Fidelity Central Funds | | 4,189 |
Income before foreign taxes withheld | | 255,230 |
Less foreign taxes withheld | | (23,773) |
Total income | | 231,457 |
| | |
Expenses | | |
Management fee | $ 83,661 | |
Transfer agent fees | 36,933 | |
Distribution and service plan fees | 57,489 | |
Accounting and security lending fees | 6,194 | |
Custodian fees and expenses | 21,203 | |
Independent trustees' compensation | 59 | |
Registration fees | 58,010 | |
Audit | 25,923 | |
Legal | 44 | |
Miscellaneous | 119 | |
Total expenses before reductions | 289,635 | |
Expense reductions | (93,808) | 195,827 |
Net investment income (loss) | | 35,630 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 1,656,046 | |
Foreign currency transactions | 2,533 | |
Total net realized gain (loss) | | 1,658,579 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 1,701,498 | |
Assets and liabilities in foreign currencies | (1,712) | |
Total change in net unrealized appreciation (depreciation) | | 1,699,786 |
Net gain (loss) | | 3,358,365 |
Net increase (decrease) in net assets resulting from operations | | $ 3,393,995 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 35,630 | $ 84,988 |
Net realized gain (loss) | 1,658,579 | 322,052 |
Change in net unrealized appreciation (depreciation) | 1,699,786 | 1,507,133 |
Net increase (decrease) in net assets resulting
from operations | 3,393,995 | 1,914,173 |
Distributions to shareholders from net investment income | (69,262) | (281,171) |
Share transactions - net increase (decrease) | (1,526,984) | (4,178,483) |
Redemption fees | 49 | 436 |
Total increase (decrease) in net assets | 1,797,798 | (2,545,045) |
| | |
Net Assets | | |
Beginning of period | 23,209,768 | 25,754,813 |
End of period (including undistributed net investment income of $32,191 and undistributed net investment income of $65,823, respectively) | $ 25,007,566 | $ 23,209,768 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.74 | $ 10.82 | $ 8.98 | $ 20.94 | $ 17.49 | $ 13.47 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 | .06 | .15 | .25 | .32 | .19 H |
Net realized and unrealized gain (loss) | 1.77 | .99 | 1.99 | (9.22) | 4.48 | 4.18 |
Total from investment operations | 1.80 | 1.05 | 2.14 | (8.97) | 4.80 | 4.37 |
Distributions from net investment income | (.06) | (.13) | (.30) | (.31) | (.12) | (.13) |
Distributions from net realized gain | - | - | - | (2.68) | (1.23) | (.22) |
Total distributions | (.06) | (.13) | (.30) | (2.99) | (1.35) | (.35) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 13.48 | $ 11.74 | $ 10.82 | $ 8.98 | $ 20.94 | $ 17.49 |
Total Return B, C, D | 15.37% | 9.74% | 25.27% | (49.77)% | 29.16% | 33.17% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.21% A | 2.05% | 2.00% | 1.63% | 1.53% | 1.81% |
Expenses net of fee waivers, if any | 1.45% A | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% |
Expenses net of all reductions | 1.42% A | 1.43% | 1.46% | 1.46% | 1.46% | 1.40% |
Net investment income (loss) | .54% A | .61% | 1.73% | 1.65% | 1.69% | 1.16% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $10,770 | $ 10,276 | $ 10,904 | $ 10,286 | $ 29,273 | $ 18,972 |
Portfolio turnover rate G | 96% A | 143% | 109% | 112% | 173% | 173% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.08 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .68%. 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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.68 | $ 10.78 | $ 8.92 | $ 20.75 | $ 17.35 | $ 13.34 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .04 | .13 | .21 | .27 | .14 H |
Net realized and unrealized gain (loss) | 1.76 | .97 | 1.99 | (9.17) | 4.44 | 4.17 |
Total from investment operations | 1.78 | 1.01 | 2.12 | (8.96) | 4.71 | 4.31 |
Distributions from net investment income | (.03) | (.11) | (.26) | (.19) | (.08) | (.08) |
Distributions from net realized gain | - | - | - | (2.68) | (1.23) | (.22) |
Total distributions | (.03) | (.11) | (.26) | (2.87) | (1.31) | (.30) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 13.43 | $ 11.68 | $ 10.78 | $ 8.92 | $ 20.75 | $ 17.35 |
Total Return B, C, D | 15.24% | 9.42% | 24.99% | (49.91)% | 28.86% | 32.95% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.48% A | 2.34% | 2.28% | 1.88% | 1.80% | 2.07% |
Expenses net of fee waivers, if any | 1.70% A | 1.75% | 1.75% | 1.75% | 1.75% | 1.75% |
Expenses net of all reductions | 1.67% A | 1.67% | 1.71% | 1.71% | 1.71% | 1.65% |
Net investment income (loss) | .29% A | .36% | 1.48% | 1.40% | 1.44% | .91% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 7,935 | $ 7,496 | $ 8,014 | $ 7,866 | $ 21,357 | $ 24,643 |
Portfolio turnover rate G | 96% A | 143% | 109% | 112% | 173% | 173% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.08 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .43%. 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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.35 | $ 10.48 | $ 8.61 | $ 20.16 | $ 16.91 | $ 12.98 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.01) | .08 | .13 | .17 | .06 H |
Net realized and unrealized gain (loss) | 1.71 | .94 | 1.95 | (8.86) | 4.34 | 4.10 |
Total from investment operations | 1.70 | .93 | 2.03 | (8.73) | 4.51 | 4.16 |
Distributions from net investment income | - | (.06) | (.16) | (.14) | (.03) | (.01) |
Distributions from net realized gain | - | - | - | (2.68) | (1.23) | (.22) |
Total distributions | - | (.06) | (.16) | (2.82) | (1.26) | (.23) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 13.05 | $ 11.35 | $ 10.48 | $ 8.61 | $ 20.16 | $ 16.91 |
Total Return B, C, D | 14.98% | 8.87% | 24.34% | (50.13)% | 28.29% | 32.49% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.98% A | 2.82% | 2.77% | 2.39% | 2.31% | 2.69% |
Expenses net of fee waivers, if any | 2.20% A | 2.25% | 2.25% | 2.25% | 2.25% | 2.25% |
Expenses net of all reductions | 2.17% A | 2.18% | 2.21% | 2.21% | 2.21% | 2.15% |
Net investment income (loss) | (.21)% A | (.14)% | .98% | .90% | .94% | .41% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,718 | $ 1,935 | $ 2,490 | $ 2,806 | $ 11,206 | $ 8,529 |
Portfolio turnover rate G | 96% A | 143% | 109% | 112% | 173% | 173% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.07)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.30 | $ 10.43 | $ 8.58 | $ 20.10 | $ 16.89 | $ 13.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.01) | .08 | .13 | .17 | .06 H |
Net realized and unrealized gain (loss) | 1.69 | .94 | 1.94 | (8.82) | 4.32 | 4.07 |
Total from investment operations | 1.68 | .93 | 2.02 | (8.69) | 4.49 | 4.13 |
Distributions from net investment income | - | (.06) | (.17) | (.15) | (.05) | (.02) |
Distributions from net realized gain | - | - | - | (2.68) | (1.23) | (.22) |
Total distributions | - | (.06) | (.17) | (2.83) | (1.28) | (.24) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 12.98 | $ 11.30 | $ 10.43 | $ 8.58 | $ 20.10 | $ 16.89 |
Total Return B, C, D | 14.87% | 8.92% | 24.29% | (50.11)% | 28.21% | 32.25% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | 2.95% A | 2.82% | 2.77% | 2.38% | 2.26% | 2.57% |
Expenses net of fee waivers, if any | 2.20% A | 2.25% | 2.25% | 2.25% | 2.25% | 2.25% |
Expenses net of all reductions | 2.17% A | 2.18% | 2.21% | 2.21% | 2.21% | 2.15% |
Net investment income (loss) | (.21)% A | (.14)% | .98% | .90% | .94% | .41% H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 3,511 | $ 3,166 | $ 3,913 | $ 4,522 | $ 16,084 | $ 9,173 |
Portfolio turnover rate G | 96% A | 143% | 109% | 112% | 173% | 173% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.07)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.98 | $ 11.03 | $ 9.13 | $ 21.27 | $ 17.72 | $ 13.63 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .05 | .09 | .18 | .30 | .38 | .23 G |
Net realized and unrealized gain (loss) | 1.80 | 1.01 | 2.03 | (9.38) | 4.54 | 4.25 |
Total from investment operations | 1.85 | 1.10 | 2.21 | (9.08) | 4.92 | 4.48 |
Distributions from net investment income | (.09) | (.15) | (.31) | (.38) | (.14) | (.17) |
Distributions from net realized gain | - | - | - | (2.68) | (1.23) | (.22) |
Total distributions | (.09) | (.15) | (.31) | (3.06) | (1.37) | (.39) |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 13.74 | $ 11.98 | $ 11.03 | $ 9.13 | $ 21.27 | $ 17.72 |
Total Return B, C | 15.51% | 10.00% | 25.57% | (49.63)% | 29.57% | 33.68% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | 1.75% A | 1.80% | 1.68% | 1.27% | 1.19% | 1.46% |
Expenses net of fee waivers, if any | 1.20% A | 1.25% | 1.25% | 1.25% | 1.19% | 1.25% |
Expenses net of all reductions | 1.17% A | 1.17% | 1.21% | 1.21% | 1.15% | 1.15% |
Net investment income (loss) | .79% A | .86% | 1.98% | 1.90% | 2.00% | 1.41% G |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,074 | $ 336 | $ 434 | $ 378 | $ 1,738 | $ 1,331 |
Portfolio turnover rate F | 96% A | 143% | 109% | 112% | 173% | 173% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.08 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .93%. 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, 2011 (Unaudited)
1. Organization.
Fidelity Advisor Europe Capital Appreciation Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
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
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, 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 | $ 4,977,598 |
Gross unrealized depreciation | (696,379) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 4,281,219 |
| |
Tax cost | $ 21,774,941 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
3. Significant Accounting Policies - continued
New Accounting Pronouncement. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update changes the wording used to describe the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. The update is effective during interim and annual periods beginning after December 15, 2011. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $11,099,724 and $12,541,677, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .71% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | 0% | .25% | $ 13,077 | $ 266 |
Class T | .25% | .25% | 18,918 | 223 |
Class B | .75% | .25% | 9,073 | 6,860 |
Class C | .75% | .25% | 16,421 | 1,462 |
| | | $ 57,489 | $ 8,811 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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% to 1% for Class B, 1% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 1,264 |
Class T | 957 |
Class B* | 2,593 |
Class C* | 164 |
| $ 4,978 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 16,183 | .31 |
Class T | 12,393 | .33 |
Class B | 2,804 | .31 |
Class C | 5,048 | .31 |
Institutional Class | 505 | .18 |
| $ 36,933 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the 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. The commissions paid to these affiliated firms were $61 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $41 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. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and 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 $3,775. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.45% | $ 39,575 |
Class T | 1.70% | 29,656 |
Class B | 2.20% | 7,116 |
Class C | 2.20% | 12,384 |
Institutional Class | 1.20% | 1,511 |
| | $ 90,242 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $3,566 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
From net investment income | | |
Class A | $ 48,533 | $ 132,405 |
Class T | 17,367 | 105,744 |
Class B | - | 13,563 |
Class C | - | 22,327 |
Institutional Class | 3,362 | 7,132 |
Total | $ 69,262 | $ 281,171 |
Semiannual Report
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months
ended April 30,
2011 | Year ended
October 31,
2010 | Six months
ended April 30,
2011 | Year ended
October 31,
2010 |
Class A | | | | |
Shares sold | 57,558 | 127,568 | $ 709,105 | $ 1,411,611 |
Reinvestment of distributions | 3,553 | 10,457 | 42,460 | 119,629 |
Shares redeemed | (137,631) | (270,495) | (1,698,665) | (2,873,077) |
Net increase (decrease) | (76,520) | (132,470) | $ (947,100) | $ (1,341,837) |
Class T | | | | |
Shares sold | 41,836 | 285,617 | $ 513,365 | $ 3,265,728 |
Reinvestment of distributions | 1,416 | 8,986 | 16,884 | 102,440 |
Shares redeemed | (94,157) | (396,557) | (1,155,019) | (4,398,721) |
Net increase (decrease) | (50,905) | (101,954) | $ (624,770) | $ (1,030,553) |
Class B | | | | |
Shares sold | 1,625 | 16,071 | $ 18,940 | $ 167,235 |
Reinvestment of distributions | - | 1,085 | - | 12,073 |
Shares redeemed | (40,459) | (84,324) | (486,864) | (867,232) |
Net increase (decrease) | (38,834) | (67,168) | $ (467,924) | $ (687,924) |
Class C | | | | |
Shares sold | 24,582 | 36,176 | $ 291,565 | $ 385,078 |
Reinvestment of distributions | - | 1,719 | - | 19,047 |
Shares redeemed | (34,507) | (132,930) | (410,990) | (1,389,265) |
Net increase (decrease) | (9,925) | (95,035) | $ (119,425) | $ (985,140) |
Institutional Class | | | | |
Shares sold | 53,431 | 21,917 | $ 673,475 | $ 240,660 |
Reinvestment of distributions | 124 | 430 | 1,508 | 5,009 |
Shares redeemed | (3,460) | (33,643) | (42,748) | (378,698) |
Net increase (decrease) | 50,095 | (11,296) | $ 632,235 | $ (133,029) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
FIL Investment Advisors
FIL Investment Advisors (U.K.) Limited
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
AEURI-USAN-0611
1.784876.108
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Global Capital Appreciation
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense
Ratio | Beginning
Account Value
November 1, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010 to
April 30, 2011 |
Class A | 1.45% | | | |
Actual | | $ 1,000.00 | $ 999.10 | $ 7.19 |
HypotheticalA | | $ 1,000.00 | $ 1,017.60 | $ 7.25 |
Class T | 1.70% | | | |
Actual | | $ 1,000.00 | $ 998.90 | $ 8.43 |
HypotheticalA | | $ 1,000.00 | $ 1,016.36 | $ 8.50 |
Class B | 2.20% | | | |
Actual | | $ 1,000.00 | $ 996.20 | $ 10.89 |
HypotheticalA | | $ 1,000.00 | $ 1,013.88 | $ 10.99 |
Class C | 2.20% | | | |
Actual | | $ 1,000.00 | $ 996.80 | $ 10.89 |
HypotheticalA | | $ 1,000.00 | $ 1,013.88 | $ 10.99 |
Institutional Class | 1.20% | | | |
Actual | | $ 1,000.00 | $ 1,000.90 | $ 5.95 |
HypotheticalA | | $ 1,000.00 | $ 1,018.84 | $ 6.01 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
eBay, Inc. (United States of America, Internet Software & Services) | 8.2 | 0.1 |
Corning, Inc. (United States of America, Electronic Equipment & Components) | 5.2 | 0.0 |
Nanosphere, Inc. (United States of America, Biotechnology) | 3.5 | 1.2 |
Google, Inc. Class A (United States of America, Internet Software & Services) | 3.5 | 0.0 |
Copa Holdings SA Class A (Panama, Airlines) | 3.1 | 0.0 |
| 23.5 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 30.8 | 22.1 |
Health Care | 19.1 | 13.8 |
Consumer Discretionary | 16.1 | 11.9 |
Energy | 12.1 | 0.9 |
Financials | 7.9 | 12.6 |
Top Five Countries as of April 30, 2011 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United States of America | 38.4 | 19.8 |
India | 18.7 | 16.0 |
Japan | 9.8 | 12.6 |
Canada | 7.0 | 1.9 |
United Kingdom | 4.2 | 0.8 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011 | As of October 31, 2010 |
| Stocks 98.2% | | | Stocks 84.8% | |
| Short-Term
Investments and
Net Other Assets 1.8% | | | Short-Term
Investments and
Net Other Assets 15.2% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.2% |
| Shares | | Value |
Australia - 0.2% |
Newcrest Mining Ltd. | 6,357 | | $ 288,925 |
Bermuda - 0.8% |
Fairwood Holdings Ltd. | 443,500 | | 620,168 |
Luk Fook Holdings International Ltd. | 203,000 | | 751,484 |
TOTAL BERMUDA | | 1,371,652 |
Brazil - 1.5% |
Fleury SA | 13,100 | | 195,255 |
Tegma Gestao Logistica | 79,400 | | 1,361,100 |
Totvs SA | 41,800 | | 797,051 |
TOTAL BRAZIL | | 2,353,406 |
British Virgin Islands - 0.6% |
HLS Systems International Ltd. (a)(d) | 81,600 | | 980,016 |
Canada - 7.0% |
Antrim Energy, Inc. (a) | 179,000 | | 172,170 |
Bellhaven Copper & Gold, Inc. (a) | 1,661,000 | | 983,152 |
Canadian Natural Resources Ltd. | 17,100 | | 804,483 |
Carpathian Gold, Inc. (a) | 5,293,000 | | 2,433,628 |
Cathedral Energy Services Ltd. | 264,300 | | 2,598,023 |
Computer Modelling Group Ltd. | 18,900 | | 573,333 |
Kinross Gold Corp. | 66,400 | | 1,052,743 |
Kodiak Oil & Gas Corp. (a)(d) | 111,400 | | 782,028 |
Petrobank Energy & Resources Ltd. | 30,400 | | 643,281 |
Petrominerales Ltd. | 1,044 | | 39,957 |
PHX Energy Services Corp. | 4,400 | | 57,575 |
Sandvine Corp. (U.K.) (a) | 53,000 | | 133,886 |
SunOpta, Inc. (a) | 6,300 | | 44,478 |
Tuscany International Drilling, Inc. (a) | 498,800 | | 796,098 |
Yamana Gold, Inc. | 3,500 | | 44,615 |
TOTAL CANADA | | 11,159,450 |
Cayman Islands - 1.5% |
Daphne International Holdings Ltd. | 602,000 | | 482,140 |
EVA Precision Industrial Holdings Ltd. | 44,000 | | 37,676 |
Longtop Financial Technologies Ltd. ADR (a)(d) | 86,400 | | 1,949,184 |
TOTAL CAYMAN ISLANDS | | 2,469,000 |
France - 3.5% |
AXA SA (d) | 213,067 | | 4,781,262 |
Ubisoft Entertainment SA (a) | 87,678 | | 880,250 |
TOTAL FRANCE | | 5,661,512 |
Common Stocks - continued |
| Shares | | Value |
India - 18.7% |
CRISIL Ltd. | 1,279 | | $ 189,589 |
Dhampur Sugar Mills Ltd. (a) | 43,231 | | 57,830 |
Divi's Laboratories Ltd. | 1,204 | | 19,229 |
FDC Ltd. | 1,963,838 | | 4,588,427 |
Hawkins Cookers Ltd. | 16,293 | | 404,352 |
ICRA Ltd. | 55,449 | | 1,383,312 |
Indoco Remedies Ltd. | 249,224 | | 2,504,911 |
INFO Edge India Ltd. | 173,612 | | 2,784,736 |
Jubilant Foodworks Ltd. (a) | 175,042 | | 2,917,828 |
Jyothy Laboratories Ltd. | 3,500 | | 16,367 |
MIC Electronics Ltd. (a) | 2,694,086 | | 1,552,349 |
NIIT Ltd. | 607,773 | | 769,759 |
NIIT Technologies Ltd. | 116,083 | | 493,658 |
Opto Circuits India Ltd. | 575,876 | | 3,927,226 |
Prakash Industries Ltd. (a) | 194,597 | | 373,980 |
REI Agro Ltd. | 943,075 | | 564,716 |
REI Six Ten Retail Ltd. | 328,772 | | 340,250 |
Sobha Developers Ltd. | 255,112 | | 1,646,079 |
Strides Arcolab Ltd. | 93,067 | | 812,483 |
Sun TV Ltd. | 231,854 | | 2,234,977 |
Torrent Pharmaceuticals Ltd. | 8,500 | | 115,337 |
Unichem Laboratories Ltd. | 507,174 | | 2,197,506 |
TOTAL INDIA | | 29,894,901 |
Japan - 9.8% |
Kakaku.com, Inc. | 416 | | 2,397,039 |
Kenedix, Inc. (a) | 18,158 | | 3,317,350 |
MEGANE TOP CO. LTD. | 351,900 | | 3,485,614 |
Park24 Co. Ltd. | 39,900 | | 416,847 |
Proto Corp. | 67,800 | | 2,538,156 |
So-net M3, Inc. (d) | 354 | | 2,300,528 |
Start Today Co. Ltd. | 29,100 | | 508,674 |
Tokyo Electron Ltd. | 1,800 | | 104,196 |
Tsutsumi Jewelry Co. Ltd. | 22,000 | | 548,860 |
TOTAL JAPAN | | 15,617,264 |
Korea (South) - 1.3% |
Able C&C Ltd. | 49,230 | | 1,370,699 |
MegaStudy Co. Ltd. | 4,831 | | 688,592 |
TOTAL KOREA (SOUTH) | | 2,059,291 |
Netherlands - 0.5% |
Gemalto NV | 15,000 | | 768,854 |
Common Stocks - continued |
| Shares | | Value |
Panama - 3.1% |
Copa Holdings SA Class A | 86,402 | | $ 5,024,276 |
Philippines - 1.1% |
Cebu Air, Inc. | 865,000 | | 1,697,465 |
Russia - 2.8% |
Pharmstandard OJSC (a) | 39,933 | | 3,483,517 |
Veropharm (a) | 16,400 | | 728,995 |
Vozrozhdenie Bank (a) | 8,300 | | 310,481 |
TOTAL RUSSIA | | 4,522,993 |
South Africa - 0.6% |
Blue Label Telecoms Ltd. | 401,054 | | 374,266 |
Spur Corp. Ltd. | 256,980 | | 528,142 |
TOTAL SOUTH AFRICA | | 902,408 |
Sweden - 0.9% |
EnergyO Solutions AB (a) | 215,257 | | 1,424,717 |
Taiwan - 1.7% |
Edison Opto Corp. | 425,000 | | 1,903,870 |
HTC Corp. | 19,000 | | 861,077 |
TOTAL TAIWAN | | 2,764,947 |
United Kingdom - 4.2% |
Ascent Resources PLC (a) | 2,035,600 | | 174,264 |
Cadogan Petroleum PLC (a) | 284,800 | | 228,350 |
CPP Group PLC | 434,300 | | 924,955 |
Ensco International Ltd. ADR | 7,100 | | 423,302 |
Northern Petroleum PLC (a) | 84,900 | | 191,453 |
Royal Dutch Shell PLC Class B sponsored ADR | 61,500 | | 4,819,140 |
TOTAL UNITED KINGDOM | | 6,761,464 |
United States of America - 38.4% |
Advance Auto Parts, Inc. | 23,900 | | 1,564,494 |
Altera Corp. | 32,600 | | 1,587,620 |
Apache Corp. | 25,000 | | 3,334,250 |
Computer Task Group, Inc. (a) | 89,700 | | 1,332,045 |
Corning, Inc. | 396,900 | | 8,311,086 |
DG FastChannel, Inc. (a) | 12,895 | | 471,828 |
Discover Financial Services | 41,300 | | 1,025,892 |
eBay, Inc. (a) | 380,000 | | 13,071,998 |
Fuel Systems Solutions, Inc. (a) | 35,000 | | 1,040,375 |
Genomic Health, Inc. (a) | 12,280 | | 335,244 |
Google, Inc. Class A (a) | 10,300 | | 5,604,230 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Grand Canyon Education, Inc. (a) | 61,200 | | $ 884,952 |
MasterCard, Inc. Class A | 3,600 | | 993,204 |
McKesson Corp. | 3,900 | | 323,739 |
Nanosphere, Inc. (a)(d)(e) | 1,903,070 | | 5,652,118 |
Northern Oil & Gas, Inc. (a)(d) | 87,100 | | 2,069,496 |
NVE Corp. (a) | 6,021 | | 354,998 |
NxStage Medical, Inc. (a) | 33,300 | | 820,512 |
QEP Resources, Inc. | 40,600 | | 1,734,838 |
Resolute Energy Corp. (a) | 27,050 | | 478,515 |
Summer Infant, Inc. (a) | 320,146 | | 2,830,091 |
Support.com, Inc. (a) | 122,836 | | 703,850 |
Synta Pharmaceuticals Corp. (a)(d) | 416,167 | | 2,526,134 |
The Walt Disney Co. | 90,200 | | 3,887,619 |
Zoltek Companies, Inc. (a) | 34,379 | | 441,770 |
TOTAL UNITED STATES OF AMERICA | | 61,380,898 |
TOTAL COMMON STOCKS (Cost $157,775,039) | 157,103,439 |
Money Market Funds - 10.7% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 6,945,053 | | 6,945,053 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 10,164,648 | | 10,164,648 |
TOTAL MONEY MARKET FUNDS (Cost $17,109,701) | 17,109,701 |
TOTAL INVESTMENT PORTFOLIO - 108.9% (Cost $174,884,740) | | 174,213,140 |
NET OTHER ASSETS (LIABILITIES) - (8.9)% | | (14,304,230) |
NET ASSETS - 100% | $ 159,908,910 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
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 | $ 10,277 |
Fidelity Securities Lending Cash Central Fund | 55,348 |
Total | $ 65,625 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Nanosphere, Inc. | $ 911,696 | $ 8,616,831 | $ 213,406 | $ - | $ 5,652,118 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
United States of America | $ 61,380,898 | $ 61,380,898 | $ - | $ - |
India | 29,894,901 | 29,894,901 | - | - |
Japan | 15,617,264 | - | 15,617,264 | - |
Canada | 11,159,450 | 11,159,450 | - | - |
United Kingdom | 6,761,464 | 6,761,464 | - | - |
France | 5,661,512 | 5,661,512 | - | - |
Panama | 5,024,276 | 5,024,276 | - | - |
Russia | 4,522,993 | 4,522,993 | - | - |
Taiwan | 2,764,947 | 2,764,947 | - | - |
Other | 14,315,734 | 14,315,734 | - | - |
Money Market Funds | 17,109,701 | 17,109,701 | - | - |
Total Investments in Securities: | $ 174,213,140 | $ 158,595,876 | $ 15,617,264 | $ - |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $10,598,573 of which $7,580,172 and $3,018,401 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $9,681,392) - See accompanying schedule: Unaffiliated issuers (cost $148,571,051) | $ 151,451,321 | |
Fidelity Central Funds (cost $17,109,701) | 17,109,701 | |
Other affiliated issuers (cost $9,203,988) | 5,652,118 | |
Total Investments (cost $174,884,740) | | $ 174,213,140 |
Cash | | 1,061,539 |
Foreign currency held at value (cost $2,060,450) | | 2,128,252 |
Receivable for investments sold | | 131,856 |
Receivable for fund shares sold | | 310,743 |
Dividends receivable | | 410,746 |
Distributions receivable from Fidelity Central Funds | | 3,737 |
Prepaid expenses | | 36 |
Other receivables | | 88,675 |
Total assets | | 178,348,724 |
| | |
Liabilities | | |
Payable for investments purchased | $ 7,756,192 | |
Payable for fund shares redeemed | 289,273 | |
Accrued management fee | 106,147 | |
Distribution and service plan fees payable | 39,423 | |
Other affiliated payables | 38,908 | |
Other payables and accrued expenses | 45,223 | |
Collateral on securities loaned, at value | 10,164,648 | |
Total liabilities | | 18,439,814 |
| | |
Net Assets | | $ 159,908,910 |
Net Assets consist of: | | |
Paid in capital | | $ 167,440,162 |
Accumulated net investment loss | | (386,421) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (6,541,351) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (603,480) |
Net Assets | | $ 159,908,910 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($51,722,913 ÷ 4,551,094 shares) | | $ 11.36 |
| | |
Maximum offering price per share (100/94.25 of $11.36) | | $ 12.05 |
Class T:
Net Asset Value and redemption price per share ($32,380,326 ÷ 2,925,865 shares) | | $ 11.07 |
| | |
Maximum offering price per share (100/96.50 of $11.07) | | $ 11.47 |
Class B:
Net Asset Value and offering price per share ($2,869,344 ÷ 275,371 shares)A | | $ 10.42 |
| | |
Class C:
Net Asset Value and offering price per share ($16,538,444 ÷ 1,589,449 shares)A | | $ 10.41 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($56,397,883 ÷ 4,812,238 shares) | | $ 11.72 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 711,534 |
Interest | | 444 |
Income from Fidelity Central Funds (including $55,348 from security lending) | | 65,625 |
Income before foreign taxes withheld | | 777,603 |
Less foreign taxes withheld | | (65,612) |
Total income | | 711,991 |
| | |
Expenses | | |
Management fee
Basic fee | $ 530,650 | |
Performance adjustment | 14,507 | |
Transfer agent fees | 188,454 | |
Distribution and service plan fees | 222,893 | |
Accounting and security lending fees | 39,565 | |
Custodian fees and expenses | 93,316 | |
Independent trustees' compensation | 324 | |
Registration fees | 91,108 | |
Audit | 39,943 | |
Legal | 174 | |
Interest | 1,002 | |
Miscellaneous | 360 | |
Total expenses before reductions | 1,222,296 | |
Expense reductions | (123,884) | 1,098,412 |
Net investment income (loss) | | (386,421) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 4,531,036 | |
Other affiliated issuers | (6,944) | |
Foreign currency transactions | (108,373) | |
Total net realized gain (loss) | | 4,415,719 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $145,516) | (9,862,354) | |
Assets and liabilities in foreign currencies | 67,019 | |
Total change in net unrealized appreciation (depreciation) | | (9,795,335) |
Net gain (loss) | | (5,379,616) |
Net increase (decrease) in net assets resulting from operations | | $ (5,766,037) |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (386,421) | $ (31,162) |
Net realized gain (loss) | 4,415,719 | 2,238,659 |
Change in net unrealized appreciation (depreciation) | (9,795,335) | 7,407,825 |
Net increase (decrease) in net assets resulting
from operations | (5,766,037) | 9,615,322 |
Distributions to shareholders from net investment income | - | (45,039) |
Distributions to shareholders from net realized gain | (311,721) | (205,342) |
Total distributions | (311,721) | (250,381) |
Share transactions - net increase (decrease) | 88,709,240 | 43,722,613 |
Redemption fees | 4,695 | 5,493 |
Total increase (decrease) in net assets | 82,636,177 | 53,093,047 |
| | |
Net Assets | | |
Beginning of period | 77,272,733 | 24,179,686 |
End of period (including accumulated net investment loss of $386,421 and undistributed net investment income of $0, respectively) | $ 159,908,910 | $ 77,272,733 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.41 | $ 9.04 | $ 6.88 | $ 15.38 | $ 14.83 | $ 13.68 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | .01 | .04 | .04 | .01 | .01 |
Net realized and unrealized gain (loss) | .02 H | 2.47 | 2.13 | (6.74) | 2.69 | 1.20 |
Total from investment operations | (.01) | 2.48 | 2.17 | (6.70) | 2.70 | 1.21 |
Distributions from net investment income | - | (.03) | (.01) | - | - | (.04) |
Distributions from net realized gain | (.04) | (.08) | - | (1.80) | (2.15) | (.02) |
Total distributions | (.04) | (.11) | (.01) | (1.80) | (2.15) | (.06) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 11.36 | $ 11.41 | $ 9.04 | $ 6.88 | $ 15.38 | $ 14.83 |
Total Return B,C, D | (.09)% | 27.68% | 31.68% | (48.99)% | 20.55% | 8.86% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 1.62% A | 1.89% | 2.22% | 1.90% | 1.81% | 1.69% |
Expenses net of fee waivers, if any | 1.45% A | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% |
Expenses net of all reductions | 1.42% A | 1.44% | 1.43% | 1.41% | 1.45% | 1.46% |
Net investment income (loss) | (.47)% A | .13% | .53% | .38% | .06% | .06% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 51,723 | $ 30,383 | $ 6,997 | $ 6,904 | $ 14,000 | $ 10,956 |
Portfolio turnover rate G | 151% A | 179% | 258% | 257% | 102% | 251% |
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 The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.11 | $ 8.82 | $ 6.72 | $ 15.05 | $ 14.59 | $ 13.46 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.01) | .02 | .01 | (.03) | (.03) |
Net realized and unrealized gain (loss) | .03 H | 2.39 | 2.09 | (6.59) | 2.64 | 1.19 |
Total from investment operations | (.01) | 2.38 | 2.11 | (6.58) | 2.61 | 1.16 |
Distributions from net investment income | - | (.01) | (.01) | - | - | (.01) |
Distributions from net realized gain | (.03) | (.08) | - | (1.75) | (2.15) | (.02) |
Total distributions | (.03) | (.09) | (.01) | (1.75) | (2.15) | (.03) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 11.07 | $ 11.11 | $ 8.82 | $ 6.72 | $ 15.05 | $ 14.59 |
Total Return B,C,D | (.11)% | 27.20% | 31.50% | (49.12)% | 20.24% | 8.62% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 1.91% A | 2.32% | 2.50% | 2.17% | 2.08% | 1.99% |
Expenses net of fee waivers, if any | 1.70% A | 1.75% | 1.75% | 1.75% | 1.75% | 1.75% |
Expenses net of all reductions | 1.67% A | 1.70% | 1.69% | 1.66% | 1.71% | 1.71% |
Net investment income (loss) | (.72)% A | (.13)% | .27% | .13% | (.19)% | (.19)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 32,380 | $ 23,237 | $ 10,494 | $ 8,104 | $ 22,039 | $ 26,780 |
Portfolio turnover rate G | 151% A | 179% | 258% | 257% | 102% | 251% |
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 The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.46 | $ 8.31 | $ 6.37 | $ 14.34 | $ 14.06 | $ 13.01 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.06) | (.02) | (.04) | (.09) | (.10) |
Net realized and unrealized gain (loss) | .02 H | 2.26 | 1.97 | (6.25) | 2.52 | 1.15 |
Total from investment operations | (.04) | 2.20 | 1.95 | (6.29) | 2.43 | 1.05 |
Distributions from net investment income | - | - | (.01) | - | - | - |
Distributions from net realized gain | - | (.05) | - | (1.68) | (2.15) | - |
Total distributions | - | (.05) | (.01) | (1.68) | (2.15) | - |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 10.42 | $ 10.46 | $ 8.31 | $ 6.37 | $ 14.34 | $ 14.06 |
Total Return B,C,D | (.38)% | 26.64% | 30.62% | (49.33)% | 19.65% | 8.07% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 2.43% A | 2.82% | 2.98% | 2.66% | 2.57% | 2.52% |
Expenses net of fee waivers, if any | 2.20% A | 2.25% | 2.25% | 2.25% | 2.25% | 2.25% |
Expenses net of all reductions | 2.17% A | 2.19% | 2.18% | 2.16% | 2.20% | 2.22% |
Net investment income (loss) | (1.22)% A | (.62)% | (.22)% | (.37)% | (.69)% | (.69)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,869 | $ 2,731 | $ 2,162 | $ 1,918 | $ 5,029 | $ 5,788 |
Portfolio turnover rate G | 151% A | 179% | 258% | 257% | 102% | 251% |
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 The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.46 | $ 8.31 | $ 6.37 | $ 14.36 | $ 14.08 | $ 13.02 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.06) | (.02) | (.04) | (.09) | (.10) |
Net realized and unrealized gain (loss) | .03 H | 2.27 | 1.97 | (6.26) | 2.52 | 1.16 |
Total from investment operations | (.03) | 2.21 | 1.95 | (6.30) | 2.43 | 1.06 |
Distributions from net investment income | - | - | (.01) | - | - | - |
Distributions from net realized gain | (.02) | (.06) | - | (1.69) | (2.15) | - |
Total distributions | (.02) | (.06) | (.01) | (1.69) | (2.15) | - |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 10.41 | $ 10.46 | $ 8.31 | $ 6.37 | $ 14.36 | $ 14.08 |
Total Return B,C,D | (.32)% | 26.68% | 30.62% | (49.35)% | 19.62% | 8.14% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 2.38% A | 2.77% | 2.97% | 2.63% | 2.57% | 2.50% |
Expenses net of fee waivers, if any | 2.20% A | 2.25% | 2.25% | 2.25% | 2.25% | 2.25% |
Expenses net of all reductions | 2.17% A | 2.20% | 2.18% | 2.16% | 2.20% | 2.21% |
Net investment income (loss) | (1.22)% A | (.63)% | (.22)% | (.37)% | (.69)% | (.69)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 16,538 | $ 7,986 | $ 3,378 | $ 2,697 | $ 5,352 | $ 5,348 |
Portfolio turnover rate G | 151% A | 179% | 258% | 257% | 102% | 251% |
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 The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.76 | $ 9.31 | $ 7.07 | $ 15.76 | $ 15.11 | $ 13.93 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.01) | .04 | .06 | .07 | .05 | .05 |
Net realized and unrealized gain (loss) | .02 G | 2.54 | 2.20 | (6.93) | 2.75 | 1.22 |
Total from investment operations | .01 | 2.58 | 2.26 | (6.86) | 2.80 | 1.27 |
Distributions from net investment income | - | (.05) | (.02) | - | - | (.07) |
Distributions from net realized gain | (.05) | (.08) | - | (1.83) | (2.15) | (.02) |
Total distributions | (.05) | (.13) | (.02) | (1.83) | (2.15) | (.09) |
Redemption fees added to paid in capital D,I | - | - | - | - | - | - |
Net asset value, end of period | $ 11.72 | $ 11.76 | $ 9.31 | $ 7.07 | $ 15.76 | $ 15.11 |
Total Return B,C | .09% | 28.00% | 32.03% | (48.89)% | 20.88% | 9.15% |
Ratios to Average Net Assets E,H | | | | | |
Expenses before reductions | 1.26% A | 1.43% | 1.88% | 1.51% | 1.43% | 1.29% |
Expenses net of fee waivers, if any | 1.20% A | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% |
Expenses net of all reductions | 1.17% A | 1.19% | 1.18% | 1.16% | 1.20% | 1.21% |
Net investment income (loss) | (.22)% A | .38% | .78% | .63% | .31% | .31% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 56,398 | $ 12,936 | $ 1,148 | $ 1,166 | $ 2,476 | $ 2,464 |
Portfolio turnover rate F | 151% A | 179% | 258% | 257% | 102% | 251% |
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 The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. 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, 2011 (Unaudited)
1. Organization.
Fidelity Advisor Global Capital Appreciation Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
Semiannual Report
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), market discount, 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 | $ 12,533,166 |
Gross unrealized depreciation | (13,573,047) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (1,039,881) |
| |
Tax cost | $ 175,253,021 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update changes the wording used to describe the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. The update is effective during interim and annual periods beginning after December 15, 2011. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $200,363,562 and $103,197,590, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the Fund's average
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .73% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 58,103 | $ 7,387 |
Class T | .25% | .25% | 77,940 | 620 |
Class B | .75% | .25% | 14,520 | 10,955 |
Class C | .75% | .25% | 72,330 | 43,257 |
| | | $ 222,893 | $ 62,219 |
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% to 1% for Class B, 1% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 45,719 |
Class T | 8,424 |
Class B* | 1,492 |
Class C* | 3,597 |
| $ 59,232 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 61,843 | .27 |
Class T | 46,405 | .30 |
Class B | 4,445 | .31 |
Class C | 20,673 | .29 |
Institutional Class | 55,088 | .20 |
| $ 188,454 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $3,155 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average
Interest Rate | Interest
Expense |
Borrower | $ 12,822,714 | .40% | $ 1,002 |
Semiannual Report
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $239 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. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and 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. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
FMR contractually agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. This reimbursement will remain in place through December 31, 2011. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Expense Reductions - continued
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.45% | $ 38,327 |
Class T | 1.70% | 32,704 |
Class B | 2.20% | 3,349 |
Class C | 2.20% | 13,013 |
Institutional Class | 1.20% | 15,264 |
| | $ 102,657 |
In addition, FMR voluntarily agreed to reimburse a portion of its management fee. For the period, the amount of this reimbursement was $673.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $20,484 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 $70.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30, 2011 | Year ended
October 31, 2010 |
From net investment income | | |
Class A | $ - | $ 24,148 |
Class T | - | 14,394 |
Institutional Class | - | 6,497 |
Total | $ - | $ 45,039 |
From net realized gain | | |
Class A | $ 137,031 | $ 62,317 |
Class T | 73,940 | 95,962 |
Class B | - | 13,694 |
Class C | 18,552 | 23,177 |
Institutional Class | 82,198 | 10,192 |
Total | $ 311,721 | $ 205,342 |
Semiannual Report
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30, 2011 | Year ended
October 31, 2010 | Six months ended
April 30, 2011 | Year ended
October 31, 2010 |
Class A | | | | |
Shares sold | 2,977,647 | 2,107,781 | $ 34,783,761 | $ 21,885,164 |
Reinvestment of distributions | 10,020 | 8,588 | 118,840 | 82,276 |
Shares redeemed | (1,100,169) | (226,391) | (12,580,185) | (2,293,965) |
Net increase (decrease) | 1,887,498 | 1,889,978 | $ 22,322,416 | $ 19,673,475 |
Class T | | | | |
Shares sold | 1,343,180 | 1,253,117 | $ 15,262,359 | $ 13,010,370 |
Reinvestment of distributions | 6,291 | 11,592 | 72,723 | 108,388 |
Shares redeemed | (515,148) | (363,578) | (5,717,244) | (3,522,646) |
Net increase (decrease) | 834,323 | 901,131 | $ 9,617,838 | $ 9,596,112 |
Class B | | | | |
Shares sold | 64,219 | 87,120 | $ 684,339 | $ 802,164 |
Reinvestment of distributions | - | 1,450 | - | 12,817 |
Shares redeemed | (49,951) | (87,578) | (527,422) | (796,786) |
Net increase (decrease) | 14,268 | 992 | $ 156,917 | $ 18,195 |
Class C | | | | |
Shares sold | 1,138,473 | 501,896 | $ 12,164,701 | $ 4,858,487 |
Reinvestment of distributions | 1,551 | 2,379 | 16,892 | 21,027 |
Shares redeemed | (313,986) | (147,177) | (3,236,914) | (1,345,064) |
Net increase (decrease) | 826,038 | 357,098 | $ 8,944,679 | $ 3,534,450 |
Institutional Class | | | | |
Shares sold | 6,129,674 | 986,043 | $ 74,349,491 | $ 11,001,071 |
Reinvestment of distributions | 5,203 | 415 | 63,530 | 4,092 |
Shares redeemed | (2,422,889) | (9,490) | (26,745,631) | (104,782) |
Net increase (decrease) | 3,711,988 | 976,968 | $ 47,667,390 | $ 10,900,381 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
FIL Investment Advisors
FIL Investments (Japan) Limited
FIL Investment Advisors (UK) Limited
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
AGLO-USAN-0611
1.784880.108
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Global Capital Appreciation
Fund - Institutional Class
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense
Ratio | Beginning
Account Value
November 1, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010 to
April 30, 2011 |
Class A | 1.45% | | | |
Actual | | $ 1,000.00 | $ 999.10 | $ 7.19 |
HypotheticalA | | $ 1,000.00 | $ 1,017.60 | $ 7.25 |
Class T | 1.70% | | | |
Actual | | $ 1,000.00 | $ 998.90 | $ 8.43 |
HypotheticalA | | $ 1,000.00 | $ 1,016.36 | $ 8.50 |
Class B | 2.20% | | | |
Actual | | $ 1,000.00 | $ 996.20 | $ 10.89 |
HypotheticalA | | $ 1,000.00 | $ 1,013.88 | $ 10.99 |
Class C | 2.20% | | | |
Actual | | $ 1,000.00 | $ 996.80 | $ 10.89 |
HypotheticalA | | $ 1,000.00 | $ 1,013.88 | $ 10.99 |
Institutional Class | 1.20% | | | |
Actual | | $ 1,000.00 | $ 1,000.90 | $ 5.95 |
HypotheticalA | | $ 1,000.00 | $ 1,018.84 | $ 6.01 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
eBay, Inc. (United States of America, Internet Software & Services) | 8.2 | 0.1 |
Corning, Inc. (United States of America, Electronic Equipment & Components) | 5.2 | 0.0 |
Nanosphere, Inc. (United States of America, Biotechnology) | 3.5 | 1.2 |
Google, Inc. Class A (United States of America, Internet Software & Services) | 3.5 | 0.0 |
Copa Holdings SA Class A (Panama, Airlines) | 3.1 | 0.0 |
| 23.5 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 30.8 | 22.1 |
Health Care | 19.1 | 13.8 |
Consumer Discretionary | 16.1 | 11.9 |
Energy | 12.1 | 0.9 |
Financials | 7.9 | 12.6 |
Top Five Countries as of April 30, 2011 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United States of America | 38.4 | 19.8 |
India | 18.7 | 16.0 |
Japan | 9.8 | 12.6 |
Canada | 7.0 | 1.9 |
United Kingdom | 4.2 | 0.8 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011 | As of October 31, 2010 |
| Stocks 98.2% | | | Stocks 84.8% | |
| Short-Term
Investments and
Net Other Assets 1.8% | | | Short-Term
Investments and
Net Other Assets 15.2% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.2% |
| Shares | | Value |
Australia - 0.2% |
Newcrest Mining Ltd. | 6,357 | | $ 288,925 |
Bermuda - 0.8% |
Fairwood Holdings Ltd. | 443,500 | | 620,168 |
Luk Fook Holdings International Ltd. | 203,000 | | 751,484 |
TOTAL BERMUDA | | 1,371,652 |
Brazil - 1.5% |
Fleury SA | 13,100 | | 195,255 |
Tegma Gestao Logistica | 79,400 | | 1,361,100 |
Totvs SA | 41,800 | | 797,051 |
TOTAL BRAZIL | | 2,353,406 |
British Virgin Islands - 0.6% |
HLS Systems International Ltd. (a)(d) | 81,600 | | 980,016 |
Canada - 7.0% |
Antrim Energy, Inc. (a) | 179,000 | | 172,170 |
Bellhaven Copper & Gold, Inc. (a) | 1,661,000 | | 983,152 |
Canadian Natural Resources Ltd. | 17,100 | | 804,483 |
Carpathian Gold, Inc. (a) | 5,293,000 | | 2,433,628 |
Cathedral Energy Services Ltd. | 264,300 | | 2,598,023 |
Computer Modelling Group Ltd. | 18,900 | | 573,333 |
Kinross Gold Corp. | 66,400 | | 1,052,743 |
Kodiak Oil & Gas Corp. (a)(d) | 111,400 | | 782,028 |
Petrobank Energy & Resources Ltd. | 30,400 | | 643,281 |
Petrominerales Ltd. | 1,044 | | 39,957 |
PHX Energy Services Corp. | 4,400 | | 57,575 |
Sandvine Corp. (U.K.) (a) | 53,000 | | 133,886 |
SunOpta, Inc. (a) | 6,300 | | 44,478 |
Tuscany International Drilling, Inc. (a) | 498,800 | | 796,098 |
Yamana Gold, Inc. | 3,500 | | 44,615 |
TOTAL CANADA | | 11,159,450 |
Cayman Islands - 1.5% |
Daphne International Holdings Ltd. | 602,000 | | 482,140 |
EVA Precision Industrial Holdings Ltd. | 44,000 | | 37,676 |
Longtop Financial Technologies Ltd. ADR (a)(d) | 86,400 | | 1,949,184 |
TOTAL CAYMAN ISLANDS | | 2,469,000 |
France - 3.5% |
AXA SA (d) | 213,067 | | 4,781,262 |
Ubisoft Entertainment SA (a) | 87,678 | | 880,250 |
TOTAL FRANCE | | 5,661,512 |
Common Stocks - continued |
| Shares | | Value |
India - 18.7% |
CRISIL Ltd. | 1,279 | | $ 189,589 |
Dhampur Sugar Mills Ltd. (a) | 43,231 | | 57,830 |
Divi's Laboratories Ltd. | 1,204 | | 19,229 |
FDC Ltd. | 1,963,838 | | 4,588,427 |
Hawkins Cookers Ltd. | 16,293 | | 404,352 |
ICRA Ltd. | 55,449 | | 1,383,312 |
Indoco Remedies Ltd. | 249,224 | | 2,504,911 |
INFO Edge India Ltd. | 173,612 | | 2,784,736 |
Jubilant Foodworks Ltd. (a) | 175,042 | | 2,917,828 |
Jyothy Laboratories Ltd. | 3,500 | | 16,367 |
MIC Electronics Ltd. (a) | 2,694,086 | | 1,552,349 |
NIIT Ltd. | 607,773 | | 769,759 |
NIIT Technologies Ltd. | 116,083 | | 493,658 |
Opto Circuits India Ltd. | 575,876 | | 3,927,226 |
Prakash Industries Ltd. (a) | 194,597 | | 373,980 |
REI Agro Ltd. | 943,075 | | 564,716 |
REI Six Ten Retail Ltd. | 328,772 | | 340,250 |
Sobha Developers Ltd. | 255,112 | | 1,646,079 |
Strides Arcolab Ltd. | 93,067 | | 812,483 |
Sun TV Ltd. | 231,854 | | 2,234,977 |
Torrent Pharmaceuticals Ltd. | 8,500 | | 115,337 |
Unichem Laboratories Ltd. | 507,174 | | 2,197,506 |
TOTAL INDIA | | 29,894,901 |
Japan - 9.8% |
Kakaku.com, Inc. | 416 | | 2,397,039 |
Kenedix, Inc. (a) | 18,158 | | 3,317,350 |
MEGANE TOP CO. LTD. | 351,900 | | 3,485,614 |
Park24 Co. Ltd. | 39,900 | | 416,847 |
Proto Corp. | 67,800 | | 2,538,156 |
So-net M3, Inc. (d) | 354 | | 2,300,528 |
Start Today Co. Ltd. | 29,100 | | 508,674 |
Tokyo Electron Ltd. | 1,800 | | 104,196 |
Tsutsumi Jewelry Co. Ltd. | 22,000 | | 548,860 |
TOTAL JAPAN | | 15,617,264 |
Korea (South) - 1.3% |
Able C&C Ltd. | 49,230 | | 1,370,699 |
MegaStudy Co. Ltd. | 4,831 | | 688,592 |
TOTAL KOREA (SOUTH) | | 2,059,291 |
Netherlands - 0.5% |
Gemalto NV | 15,000 | | 768,854 |
Common Stocks - continued |
| Shares | | Value |
Panama - 3.1% |
Copa Holdings SA Class A | 86,402 | | $ 5,024,276 |
Philippines - 1.1% |
Cebu Air, Inc. | 865,000 | | 1,697,465 |
Russia - 2.8% |
Pharmstandard OJSC (a) | 39,933 | | 3,483,517 |
Veropharm (a) | 16,400 | | 728,995 |
Vozrozhdenie Bank (a) | 8,300 | | 310,481 |
TOTAL RUSSIA | | 4,522,993 |
South Africa - 0.6% |
Blue Label Telecoms Ltd. | 401,054 | | 374,266 |
Spur Corp. Ltd. | 256,980 | | 528,142 |
TOTAL SOUTH AFRICA | | 902,408 |
Sweden - 0.9% |
EnergyO Solutions AB (a) | 215,257 | | 1,424,717 |
Taiwan - 1.7% |
Edison Opto Corp. | 425,000 | | 1,903,870 |
HTC Corp. | 19,000 | | 861,077 |
TOTAL TAIWAN | | 2,764,947 |
United Kingdom - 4.2% |
Ascent Resources PLC (a) | 2,035,600 | | 174,264 |
Cadogan Petroleum PLC (a) | 284,800 | | 228,350 |
CPP Group PLC | 434,300 | | 924,955 |
Ensco International Ltd. ADR | 7,100 | | 423,302 |
Northern Petroleum PLC (a) | 84,900 | | 191,453 |
Royal Dutch Shell PLC Class B sponsored ADR | 61,500 | | 4,819,140 |
TOTAL UNITED KINGDOM | | 6,761,464 |
United States of America - 38.4% |
Advance Auto Parts, Inc. | 23,900 | | 1,564,494 |
Altera Corp. | 32,600 | | 1,587,620 |
Apache Corp. | 25,000 | | 3,334,250 |
Computer Task Group, Inc. (a) | 89,700 | | 1,332,045 |
Corning, Inc. | 396,900 | | 8,311,086 |
DG FastChannel, Inc. (a) | 12,895 | | 471,828 |
Discover Financial Services | 41,300 | | 1,025,892 |
eBay, Inc. (a) | 380,000 | | 13,071,998 |
Fuel Systems Solutions, Inc. (a) | 35,000 | | 1,040,375 |
Genomic Health, Inc. (a) | 12,280 | | 335,244 |
Google, Inc. Class A (a) | 10,300 | | 5,604,230 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Grand Canyon Education, Inc. (a) | 61,200 | | $ 884,952 |
MasterCard, Inc. Class A | 3,600 | | 993,204 |
McKesson Corp. | 3,900 | | 323,739 |
Nanosphere, Inc. (a)(d)(e) | 1,903,070 | | 5,652,118 |
Northern Oil & Gas, Inc. (a)(d) | 87,100 | | 2,069,496 |
NVE Corp. (a) | 6,021 | | 354,998 |
NxStage Medical, Inc. (a) | 33,300 | | 820,512 |
QEP Resources, Inc. | 40,600 | | 1,734,838 |
Resolute Energy Corp. (a) | 27,050 | | 478,515 |
Summer Infant, Inc. (a) | 320,146 | | 2,830,091 |
Support.com, Inc. (a) | 122,836 | | 703,850 |
Synta Pharmaceuticals Corp. (a)(d) | 416,167 | | 2,526,134 |
The Walt Disney Co. | 90,200 | | 3,887,619 |
Zoltek Companies, Inc. (a) | 34,379 | | 441,770 |
TOTAL UNITED STATES OF AMERICA | | 61,380,898 |
TOTAL COMMON STOCKS (Cost $157,775,039) | 157,103,439 |
Money Market Funds - 10.7% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 6,945,053 | | 6,945,053 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 10,164,648 | | 10,164,648 |
TOTAL MONEY MARKET FUNDS (Cost $17,109,701) | 17,109,701 |
TOTAL INVESTMENT PORTFOLIO - 108.9% (Cost $174,884,740) | | 174,213,140 |
NET OTHER ASSETS (LIABILITIES) - (8.9)% | | (14,304,230) |
NET ASSETS - 100% | $ 159,908,910 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
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 | $ 10,277 |
Fidelity Securities Lending Cash Central Fund | 55,348 |
Total | $ 65,625 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Nanosphere, Inc. | $ 911,696 | $ 8,616,831 | $ 213,406 | $ - | $ 5,652,118 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
United States of America | $ 61,380,898 | $ 61,380,898 | $ - | $ - |
India | 29,894,901 | 29,894,901 | - | - |
Japan | 15,617,264 | - | 15,617,264 | - |
Canada | 11,159,450 | 11,159,450 | - | - |
United Kingdom | 6,761,464 | 6,761,464 | - | - |
France | 5,661,512 | 5,661,512 | - | - |
Panama | 5,024,276 | 5,024,276 | - | - |
Russia | 4,522,993 | 4,522,993 | - | - |
Taiwan | 2,764,947 | 2,764,947 | - | - |
Other | 14,315,734 | 14,315,734 | - | - |
Money Market Funds | 17,109,701 | 17,109,701 | - | - |
Total Investments in Securities: | $ 174,213,140 | $ 158,595,876 | $ 15,617,264 | $ - |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $10,598,573 of which $7,580,172 and $3,018,401 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $9,681,392) - See accompanying schedule: Unaffiliated issuers (cost $148,571,051) | $ 151,451,321 | |
Fidelity Central Funds (cost $17,109,701) | 17,109,701 | |
Other affiliated issuers (cost $9,203,988) | 5,652,118 | |
Total Investments (cost $174,884,740) | | $ 174,213,140 |
Cash | | 1,061,539 |
Foreign currency held at value (cost $2,060,450) | | 2,128,252 |
Receivable for investments sold | | 131,856 |
Receivable for fund shares sold | | 310,743 |
Dividends receivable | | 410,746 |
Distributions receivable from Fidelity Central Funds | | 3,737 |
Prepaid expenses | | 36 |
Other receivables | | 88,675 |
Total assets | | 178,348,724 |
| | |
Liabilities | | |
Payable for investments purchased | $ 7,756,192 | |
Payable for fund shares redeemed | 289,273 | |
Accrued management fee | 106,147 | |
Distribution and service plan fees payable | 39,423 | |
Other affiliated payables | 38,908 | |
Other payables and accrued expenses | 45,223 | |
Collateral on securities loaned, at value | 10,164,648 | |
Total liabilities | | 18,439,814 |
| | |
Net Assets | | $ 159,908,910 |
Net Assets consist of: | | |
Paid in capital | | $ 167,440,162 |
Accumulated net investment loss | | (386,421) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (6,541,351) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (603,480) |
Net Assets | | $ 159,908,910 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($51,722,913 ÷ 4,551,094 shares) | | $ 11.36 |
| | |
Maximum offering price per share (100/94.25 of $11.36) | | $ 12.05 |
Class T:
Net Asset Value and redemption price per share ($32,380,326 ÷ 2,925,865 shares) | | $ 11.07 |
| | |
Maximum offering price per share (100/96.50 of $11.07) | | $ 11.47 |
Class B:
Net Asset Value and offering price per share ($2,869,344 ÷ 275,371 shares)A | | $ 10.42 |
| | |
Class C:
Net Asset Value and offering price per share ($16,538,444 ÷ 1,589,449 shares)A | | $ 10.41 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($56,397,883 ÷ 4,812,238 shares) | | $ 11.72 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 711,534 |
Interest | | 444 |
Income from Fidelity Central Funds (including $55,348 from security lending) | | 65,625 |
Income before foreign taxes withheld | | 777,603 |
Less foreign taxes withheld | | (65,612) |
Total income | | 711,991 |
| | |
Expenses | | |
Management fee
Basic fee | $ 530,650 | |
Performance adjustment | 14,507 | |
Transfer agent fees | 188,454 | |
Distribution and service plan fees | 222,893 | |
Accounting and security lending fees | 39,565 | |
Custodian fees and expenses | 93,316 | |
Independent trustees' compensation | 324 | |
Registration fees | 91,108 | |
Audit | 39,943 | |
Legal | 174 | |
Interest | 1,002 | |
Miscellaneous | 360 | |
Total expenses before reductions | 1,222,296 | |
Expense reductions | (123,884) | 1,098,412 |
Net investment income (loss) | | (386,421) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 4,531,036 | |
Other affiliated issuers | (6,944) | |
Foreign currency transactions | (108,373) | |
Total net realized gain (loss) | | 4,415,719 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $145,516) | (9,862,354) | |
Assets and liabilities in foreign currencies | 67,019 | |
Total change in net unrealized appreciation (depreciation) | | (9,795,335) |
Net gain (loss) | | (5,379,616) |
Net increase (decrease) in net assets resulting from operations | | $ (5,766,037) |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (386,421) | $ (31,162) |
Net realized gain (loss) | 4,415,719 | 2,238,659 |
Change in net unrealized appreciation (depreciation) | (9,795,335) | 7,407,825 |
Net increase (decrease) in net assets resulting
from operations | (5,766,037) | 9,615,322 |
Distributions to shareholders from net investment income | - | (45,039) |
Distributions to shareholders from net realized gain | (311,721) | (205,342) |
Total distributions | (311,721) | (250,381) |
Share transactions - net increase (decrease) | 88,709,240 | 43,722,613 |
Redemption fees | 4,695 | 5,493 |
Total increase (decrease) in net assets | 82,636,177 | 53,093,047 |
| | |
Net Assets | | |
Beginning of period | 77,272,733 | 24,179,686 |
End of period (including accumulated net investment loss of $386,421 and undistributed net investment income of $0, respectively) | $ 159,908,910 | $ 77,272,733 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.41 | $ 9.04 | $ 6.88 | $ 15.38 | $ 14.83 | $ 13.68 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | .01 | .04 | .04 | .01 | .01 |
Net realized and unrealized gain (loss) | .02 H | 2.47 | 2.13 | (6.74) | 2.69 | 1.20 |
Total from investment operations | (.01) | 2.48 | 2.17 | (6.70) | 2.70 | 1.21 |
Distributions from net investment income | - | (.03) | (.01) | - | - | (.04) |
Distributions from net realized gain | (.04) | (.08) | - | (1.80) | (2.15) | (.02) |
Total distributions | (.04) | (.11) | (.01) | (1.80) | (2.15) | (.06) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 11.36 | $ 11.41 | $ 9.04 | $ 6.88 | $ 15.38 | $ 14.83 |
Total Return B,C, D | (.09)% | 27.68% | 31.68% | (48.99)% | 20.55% | 8.86% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 1.62% A | 1.89% | 2.22% | 1.90% | 1.81% | 1.69% |
Expenses net of fee waivers, if any | 1.45% A | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% |
Expenses net of all reductions | 1.42% A | 1.44% | 1.43% | 1.41% | 1.45% | 1.46% |
Net investment income (loss) | (.47)% A | .13% | .53% | .38% | .06% | .06% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 51,723 | $ 30,383 | $ 6,997 | $ 6,904 | $ 14,000 | $ 10,956 |
Portfolio turnover rate G | 151% A | 179% | 258% | 257% | 102% | 251% |
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 The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.11 | $ 8.82 | $ 6.72 | $ 15.05 | $ 14.59 | $ 13.46 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.01) | .02 | .01 | (.03) | (.03) |
Net realized and unrealized gain (loss) | .03 H | 2.39 | 2.09 | (6.59) | 2.64 | 1.19 |
Total from investment operations | (.01) | 2.38 | 2.11 | (6.58) | 2.61 | 1.16 |
Distributions from net investment income | - | (.01) | (.01) | - | - | (.01) |
Distributions from net realized gain | (.03) | (.08) | - | (1.75) | (2.15) | (.02) |
Total distributions | (.03) | (.09) | (.01) | (1.75) | (2.15) | (.03) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 11.07 | $ 11.11 | $ 8.82 | $ 6.72 | $ 15.05 | $ 14.59 |
Total Return B,C,D | (.11)% | 27.20% | 31.50% | (49.12)% | 20.24% | 8.62% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 1.91% A | 2.32% | 2.50% | 2.17% | 2.08% | 1.99% |
Expenses net of fee waivers, if any | 1.70% A | 1.75% | 1.75% | 1.75% | 1.75% | 1.75% |
Expenses net of all reductions | 1.67% A | 1.70% | 1.69% | 1.66% | 1.71% | 1.71% |
Net investment income (loss) | (.72)% A | (.13)% | .27% | .13% | (.19)% | (.19)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 32,380 | $ 23,237 | $ 10,494 | $ 8,104 | $ 22,039 | $ 26,780 |
Portfolio turnover rate G | 151% A | 179% | 258% | 257% | 102% | 251% |
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 The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.46 | $ 8.31 | $ 6.37 | $ 14.34 | $ 14.06 | $ 13.01 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.06) | (.02) | (.04) | (.09) | (.10) |
Net realized and unrealized gain (loss) | .02 H | 2.26 | 1.97 | (6.25) | 2.52 | 1.15 |
Total from investment operations | (.04) | 2.20 | 1.95 | (6.29) | 2.43 | 1.05 |
Distributions from net investment income | - | - | (.01) | - | - | - |
Distributions from net realized gain | - | (.05) | - | (1.68) | (2.15) | - |
Total distributions | - | (.05) | (.01) | (1.68) | (2.15) | - |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 10.42 | $ 10.46 | $ 8.31 | $ 6.37 | $ 14.34 | $ 14.06 |
Total Return B,C,D | (.38)% | 26.64% | 30.62% | (49.33)% | 19.65% | 8.07% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 2.43% A | 2.82% | 2.98% | 2.66% | 2.57% | 2.52% |
Expenses net of fee waivers, if any | 2.20% A | 2.25% | 2.25% | 2.25% | 2.25% | 2.25% |
Expenses net of all reductions | 2.17% A | 2.19% | 2.18% | 2.16% | 2.20% | 2.22% |
Net investment income (loss) | (1.22)% A | (.62)% | (.22)% | (.37)% | (.69)% | (.69)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,869 | $ 2,731 | $ 2,162 | $ 1,918 | $ 5,029 | $ 5,788 |
Portfolio turnover rate G | 151% A | 179% | 258% | 257% | 102% | 251% |
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 The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.46 | $ 8.31 | $ 6.37 | $ 14.36 | $ 14.08 | $ 13.02 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.06) | (.02) | (.04) | (.09) | (.10) |
Net realized and unrealized gain (loss) | .03 H | 2.27 | 1.97 | (6.26) | 2.52 | 1.16 |
Total from investment operations | (.03) | 2.21 | 1.95 | (6.30) | 2.43 | 1.06 |
Distributions from net investment income | - | - | (.01) | - | - | - |
Distributions from net realized gain | (.02) | (.06) | - | (1.69) | (2.15) | - |
Total distributions | (.02) | (.06) | (.01) | (1.69) | (2.15) | - |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 10.41 | $ 10.46 | $ 8.31 | $ 6.37 | $ 14.36 | $ 14.08 |
Total Return B,C,D | (.32)% | 26.68% | 30.62% | (49.35)% | 19.62% | 8.14% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 2.38% A | 2.77% | 2.97% | 2.63% | 2.57% | 2.50% |
Expenses net of fee waivers, if any | 2.20% A | 2.25% | 2.25% | 2.25% | 2.25% | 2.25% |
Expenses net of all reductions | 2.17% A | 2.20% | 2.18% | 2.16% | 2.20% | 2.21% |
Net investment income (loss) | (1.22)% A | (.63)% | (.22)% | (.37)% | (.69)% | (.69)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 16,538 | $ 7,986 | $ 3,378 | $ 2,697 | $ 5,352 | $ 5,348 |
Portfolio turnover rate G | 151% A | 179% | 258% | 257% | 102% | 251% |
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 The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.76 | $ 9.31 | $ 7.07 | $ 15.76 | $ 15.11 | $ 13.93 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.01) | .04 | .06 | .07 | .05 | .05 |
Net realized and unrealized gain (loss) | .02 G | 2.54 | 2.20 | (6.93) | 2.75 | 1.22 |
Total from investment operations | .01 | 2.58 | 2.26 | (6.86) | 2.80 | 1.27 |
Distributions from net investment income | - | (.05) | (.02) | - | - | (.07) |
Distributions from net realized gain | (.05) | (.08) | - | (1.83) | (2.15) | (.02) |
Total distributions | (.05) | (.13) | (.02) | (1.83) | (2.15) | (.09) |
Redemption fees added to paid in capital D,I | - | - | - | - | - | - |
Net asset value, end of period | $ 11.72 | $ 11.76 | $ 9.31 | $ 7.07 | $ 15.76 | $ 15.11 |
Total Return B,C | .09% | 28.00% | 32.03% | (48.89)% | 20.88% | 9.15% |
Ratios to Average Net Assets E,H | | | | | |
Expenses before reductions | 1.26% A | 1.43% | 1.88% | 1.51% | 1.43% | 1.29% |
Expenses net of fee waivers, if any | 1.20% A | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% |
Expenses net of all reductions | 1.17% A | 1.19% | 1.18% | 1.16% | 1.20% | 1.21% |
Net investment income (loss) | (.22)% A | .38% | .78% | .63% | .31% | .31% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 56,398 | $ 12,936 | $ 1,148 | $ 1,166 | $ 2,476 | $ 2,464 |
Portfolio turnover rate F | 151% A | 179% | 258% | 257% | 102% | 251% |
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 The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. 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, 2011 (Unaudited)
1. Organization.
Fidelity Advisor Global Capital Appreciation Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
Semiannual Report
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), market discount, 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 | $ 12,533,166 |
Gross unrealized depreciation | (13,573,047) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (1,039,881) |
| |
Tax cost | $ 175,253,021 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update changes the wording used to describe the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. The update is effective during interim and annual periods beginning after December 15, 2011. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $200,363,562 and $103,197,590, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the Fund's average
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .73% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 58,103 | $ 7,387 |
Class T | .25% | .25% | 77,940 | 620 |
Class B | .75% | .25% | 14,520 | 10,955 |
Class C | .75% | .25% | 72,330 | 43,257 |
| | | $ 222,893 | $ 62,219 |
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% to 1% for Class B, 1% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 45,719 |
Class T | 8,424 |
Class B* | 1,492 |
Class C* | 3,597 |
| $ 59,232 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 61,843 | .27 |
Class T | 46,405 | .30 |
Class B | 4,445 | .31 |
Class C | 20,673 | .29 |
Institutional Class | 55,088 | .20 |
| $ 188,454 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $3,155 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average
Interest Rate | Interest
Expense |
Borrower | $ 12,822,714 | .40% | $ 1,002 |
Semiannual Report
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $239 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. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and 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. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
FMR contractually agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. This reimbursement will remain in place through December 31, 2011. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Expense Reductions - continued
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.45% | $ 38,327 |
Class T | 1.70% | 32,704 |
Class B | 2.20% | 3,349 |
Class C | 2.20% | 13,013 |
Institutional Class | 1.20% | 15,264 |
| | $ 102,657 |
In addition, FMR voluntarily agreed to reimburse a portion of its management fee. For the period, the amount of this reimbursement was $673.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $20,484 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 $70.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30, 2011 | Year ended
October 31, 2010 |
From net investment income | | |
Class A | $ - | $ 24,148 |
Class T | - | 14,394 |
Institutional Class | - | 6,497 |
Total | $ - | $ 45,039 |
From net realized gain | | |
Class A | $ 137,031 | $ 62,317 |
Class T | 73,940 | 95,962 |
Class B | - | 13,694 |
Class C | 18,552 | 23,177 |
Institutional Class | 82,198 | 10,192 |
Total | $ 311,721 | $ 205,342 |
Semiannual Report
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30, 2011 | Year ended
October 31, 2010 | Six months ended
April 30, 2011 | Year ended
October 31, 2010 |
Class A | | | | |
Shares sold | 2,977,647 | 2,107,781 | $ 34,783,761 | $ 21,885,164 |
Reinvestment of distributions | 10,020 | 8,588 | 118,840 | 82,276 |
Shares redeemed | (1,100,169) | (226,391) | (12,580,185) | (2,293,965) |
Net increase (decrease) | 1,887,498 | 1,889,978 | $ 22,322,416 | $ 19,673,475 |
Class T | | | | |
Shares sold | 1,343,180 | 1,253,117 | $ 15,262,359 | $ 13,010,370 |
Reinvestment of distributions | 6,291 | 11,592 | 72,723 | 108,388 |
Shares redeemed | (515,148) | (363,578) | (5,717,244) | (3,522,646) |
Net increase (decrease) | 834,323 | 901,131 | $ 9,617,838 | $ 9,596,112 |
Class B | | | | |
Shares sold | 64,219 | 87,120 | $ 684,339 | $ 802,164 |
Reinvestment of distributions | - | 1,450 | - | 12,817 |
Shares redeemed | (49,951) | (87,578) | (527,422) | (796,786) |
Net increase (decrease) | 14,268 | 992 | $ 156,917 | $ 18,195 |
Class C | | | | |
Shares sold | 1,138,473 | 501,896 | $ 12,164,701 | $ 4,858,487 |
Reinvestment of distributions | 1,551 | 2,379 | 16,892 | 21,027 |
Shares redeemed | (313,986) | (147,177) | (3,236,914) | (1,345,064) |
Net increase (decrease) | 826,038 | 357,098 | $ 8,944,679 | $ 3,534,450 |
Institutional Class | | | | |
Shares sold | 6,129,674 | 986,043 | $ 74,349,491 | $ 11,001,071 |
Reinvestment of distributions | 5,203 | 415 | 63,530 | 4,092 |
Shares redeemed | (2,422,889) | (9,490) | (26,745,631) | (104,782) |
Net increase (decrease) | 3,711,988 | 976,968 | $ 47,667,390 | $ 10,900,381 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
FIL Investment Advisors
FIL Investments (Japan) Limited
FIL Investment Advisors (UK) Limited
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
AGLOI-USAN-0611
1.784881.108
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
International Capital Appreciation
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense
Ratio | Beginning
Account Value
November 1, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010 to
April 30, 2011 |
Class A | 1.44% | | | |
Actual | | $ 1,000.00 | $ 1,131.00 | $ 7.61 |
HypotheticalA | | $ 1,000.00 | $ 1,017.65 | $ 7.20 |
Class T | 1.69% | | | |
Actual | | $ 1,000.00 | $ 1,129.70 | $ 8.92 |
HypotheticalA | | $ 1,000.00 | $ 1,016.41 | $ 8.45 |
Class B | 2.19% | | | |
Actual | | $ 1,000.00 | $ 1,127.60 | $ 11.55 |
HypotheticalA | | $ 1,000.00 | $ 1,013.93 | $ 10.94 |
Class C | 2.19% | | | |
Actual | | $ 1,000.00 | $ 1,127.30 | $ 11.55 |
HypotheticalA | | $ 1,000.00 | $ 1,013.93 | $ 10.94 |
Institutional Class | 1.19% | | | |
Actual | | $ 1,000.00 | $ 1,133.00 | $ 6.29 |
HypotheticalA | | $ 1,000.00 | $ 1,018.89 | $ 5.96 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
BHP Billiton PLC ADR (United Kingdom, Metals & Mining) | 2.0 | 0.0 |
Royal Dutch Shell PLC Class B (United Kingdom, Oil, Gas & Consumable Fuels) | 1.9 | 1.8 |
HSBC Holdings PLC sponsored ADR (United Kingdom, Commercial Banks) | 1.6 | 0.0 |
Rio Tinto PLC (United Kingdom, Metals & Mining) | 1.3 | 0.0 |
Siemens AG sponsored ADR (Germany, Industrial Conglomerates) | 1.2 | 0.0 |
| 8.0 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 23.8 | 21.9 |
Financials | 20.2 | 21.9 |
Materials | 12.6 | 12.0 |
Industrials | 11.4 | 9.0 |
Consumer Staples | 10.2 | 11.3 |
Top Five Countries as of April 30, 2011 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 14.6 | 10.7 |
Japan | 14.4 | 7.5 |
United States of America | 9.5 | 8.1 |
France | 7.3 | 7.0 |
Brazil | 5.3 | 5.6 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011 | As of October 31, 2010 |
| Stocks 98.8% | | | Stocks 99.3% | |
| Short-Term
Investments and
Net Other Assets 1.2% | | | Short-Term
Investments and
Net Other Assets 0.7% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.9% |
| Shares | | Value |
Bailiwick of Jersey - 0.6% |
Randgold Resources Ltd. sponsored ADR | 10,400 | | $ 900,328 |
Belgium - 0.8% |
Anheuser-Busch InBev SA NV (d) | 19,499 | | 1,244,428 |
Bermuda - 2.0% |
China Yurun Food Group Ltd. | 235,000 | | 860,867 |
GOME Electrical Appliances Holdings Ltd. (a) | 2,323,000 | | 834,525 |
Huabao International Holdings Ltd. | 537,000 | | 796,549 |
Petra Diamonds Ltd. (a) | 277,600 | | 850,895 |
TOTAL BERMUDA | | 3,342,836 |
Brazil - 5.3% |
Banco Bradesco SA (PN) sponsored ADR | 57,600 | | 1,165,248 |
BR Malls Participacoes SA | 77,300 | | 813,632 |
Cia Hering SA | 41,900 | | 906,817 |
Companhia Brasileira de Distribuicao Grupo Pao de Acucar sponsored ADR (d) | 19,600 | | 891,016 |
Companhia de Bebidas das Americas (AmBev) (PN) sponsored ADR | 34,370 | | 1,119,775 |
Drogasil SA | 110,700 | | 795,087 |
Iguatemi Empresa de Shopping Centers SA | 34,100 | | 877,805 |
Itau Unibanco Banco Multiplo SA ADR (a)(e) | 54,600 | | 1,296,750 |
Mills Estruturas e Servicos de Engenharia SA | 64,900 | | 886,894 |
TOTAL BRAZIL | | 8,753,024 |
British Virgin Islands - 0.4% |
Sable Mining Africa Ltd. (a) | 1,766,200 | | 656,433 |
Canada - 4.2% |
Agnico-Eagle Mines Ltd. (Canada) | 13,400 | | 933,652 |
Aurcana Corp. | 1,523,900 | | 1,417,432 |
Aurcana Corp. warrants 11/30/13 (a) | 977,700 | | 630,134 |
Canadian Natural Resources Ltd. | 27,600 | | 1,298,463 |
Suncor Energy, Inc. | 32,600 | | 1,502,680 |
Teck Resources Ltd. Class B (sub. vtg.) | 20,300 | | 1,103,508 |
TOTAL CANADA | | 6,885,869 |
Cayman Islands - 3.6% |
Ajisen (China) Holdings Ltd. | 396,000 | | 790,338 |
Belle International Holdings Ltd. | 461,000 | | 899,883 |
Gourmet Master Co. Ltd. | 86,000 | | 899,425 |
Hengan International Group Co. Ltd. | 113,000 | | 881,733 |
Hengdeli Holdings Ltd. | 1,380,000 | | 826,262 |
Common Stocks - continued |
| Shares | | Value |
Cayman Islands - continued |
Maoye International Holdings Ltd. | 1,657,000 | | $ 838,496 |
Shenguan Holdings Group Ltd. | 610,000 | | 810,579 |
TOTAL CAYMAN ISLANDS | | 5,946,716 |
China - 2.0% |
Agricultural Bank China Ltd. (H Shares) | 1,640,000 | | 969,265 |
Baidu.com, Inc. sponsored ADR (a) | 5,500 | | 816,860 |
Golden Eagle Retail Group Ltd. (H Shares) | 279,000 | | 731,062 |
Suning Appliance Chain Store Co. Ltd. (UBS Warrant Programme) warrants 1/7/14 (a) | 359,800 | | 722,815 |
TOTAL CHINA | | 3,240,002 |
Denmark - 1.2% |
Carlsberg A/S Series B | 8,000 | | 950,168 |
Pandora A/S (d) | 20,800 | | 936,948 |
TOTAL DENMARK | | 1,887,116 |
France - 7.3% |
Alstom SA | 14,332 | | 953,056 |
Atos Origin SA (a) | 14,138 | | 871,259 |
AXA SA (d) | 49,200 | | 1,104,057 |
BNP Paribas SA | 18,804 | | 1,488,158 |
Christian Dior SA | 6,300 | | 1,011,075 |
Credit Agricole SA | 56,300 | | 937,321 |
LVMH Moet Hennessy - Louis Vuitton | 7,045 | | 1,265,250 |
PPR SA | 5,600 | | 1,001,587 |
Renault SA | 16,100 | | 981,079 |
Schneider Electric SA | 6,862 | | 1,212,565 |
Societe Generale Series A | 17,227 | | 1,152,331 |
TOTAL FRANCE | | 11,977,738 |
Germany - 3.4% |
Bayerische Motoren Werke AG (BMW) | 12,248 | | 1,155,084 |
Daimler AG (Germany) | 19,307 | | 1,492,505 |
HeidelbergCement AG (d) | 12,138 | | 928,246 |
Siemens AG sponsored ADR | 13,200 | | 1,926,408 |
TOTAL GERMANY | | 5,502,243 |
Hong Kong - 0.7% |
CNOOC Ltd. sponsored ADR (d) | 4,900 | | 1,222,305 |
India - 4.5% |
Bank of Baroda | 35,783 | | 749,741 |
Exide Industries Ltd. | 264,734 | | 914,052 |
Common Stocks - continued |
| Shares | | Value |
India - continued |
Gitanjali Gems Ltd. | 136,527 | | $ 823,080 |
Housing Development and Infrastructure Ltd. (a) | 191,136 | | 694,706 |
Housing Development Finance Corp. Ltd. | 61,975 | | 989,807 |
ITC Ltd. | 205,597 | | 893,607 |
Jain Irrigation Systems Ltd. | 180,382 | | 745,495 |
Sun TV Ltd. | 83,306 | | 803,036 |
Titan Industries Ltd. | 9,057 | | 824,677 |
TOTAL INDIA | | 7,438,201 |
Indonesia - 4.2% |
PT Ace Hardware Indonesia Tbk | 2,469,500 | | 764,150 |
PT Astra International Tbk | 146,500 | | 960,531 |
PT Bank Rakyat Indonesia Tbk | 1,215,000 | | 915,082 |
PT Bumi Resources Tbk | 2,246,000 | | 898,244 |
PT Global Mediacom Tbk | 8,713,500 | | 763,093 |
PT Gudang Garam Tbk | 166,000 | | 786,970 |
PT Indofood Sukses Makmur Tbk (a) | 1,346,500 | | 849,032 |
PT Mitra Adiperkasa Tbk | 2,379,500 | | 909,957 |
TOTAL INDONESIA | | 6,847,059 |
Italy - 1.2% |
Prysmian SpA | 39,216 | | 925,322 |
Saipem SpA | 17,433 | | 989,748 |
TOTAL ITALY | | 1,915,070 |
Japan - 14.4% |
Canon, Inc. sponsored ADR | 27,300 | | 1,287,741 |
Denso Corp. | 28,900 | | 967,061 |
Fanuc Ltd. | 6,700 | | 1,121,438 |
Hitachi Ltd. | 209,000 | | 1,134,256 |
Honda Motor Co. Ltd. sponsored ADR | 37,400 | | 1,434,290 |
Itochu Corp. | 92,200 | | 960,340 |
Japan Tobacco, Inc. | 268 | | 1,041,399 |
Kayaba Industry Co. Ltd. | 109,000 | | 906,659 |
Keyence Corp. | 3,500 | | 924,788 |
Komatsu Ltd. | 31,200 | | 1,099,958 |
Kubota Corp. | 99,000 | | 949,111 |
Makita Corp. | 18,900 | | 868,931 |
Marubeni Corp. | 134,000 | | 978,834 |
Mitsubishi Corp. | 41,700 | | 1,131,084 |
Mitsubishi Electric Corp. | 95,000 | | 1,057,532 |
Mitsui & Co. Ltd. | 63,100 | | 1,122,732 |
Omron Corp. | 33,700 | | 926,793 |
Common Stocks - continued |
| Shares | | Value |
Japan - continued |
ORIX Corp. | 9,090 | | $ 892,938 |
Rakuten, Inc. | 911 | | 845,805 |
SMC Corp. | 5,500 | | 1,004,591 |
SOFTBANK CORP. | 27,100 | | 1,143,393 |
Sony Corp. | 35,100 | | 990,943 |
THK Co. Ltd. | 34,700 | | 891,826 |
TOTAL JAPAN | | 23,682,443 |
Korea (South) - 1.3% |
Hyundai Motor Co. | 5,683 | | 1,311,052 |
Lock & Lock Co. Ltd. | 23,690 | | 868,005 |
TOTAL KOREA (SOUTH) | | 2,179,057 |
Mexico - 1.2% |
Grupo Mexico SA de CV Series B | 284,300 | | 984,493 |
Grupo Televisa SA de CV (CPO) sponsored ADR (a) | 40,800 | | 967,776 |
TOTAL MEXICO | | 1,952,269 |
Netherlands - 1.3% |
AEGON NV (a) | 125,700 | | 999,151 |
ING Groep NV sponsored ADR (a) | 91,294 | | 1,204,168 |
TOTAL NETHERLANDS | | 2,203,319 |
Nigeria - 0.4% |
Guaranty Trust Bank PLC GDR (Reg. S) | 111,934 | | 705,184 |
Norway - 0.5% |
Aker Solutions ASA | 36,800 | | 888,023 |
Russia - 3.2% |
LSR Group OJSC GDR (Reg. S) (a) | 90,500 | | 846,175 |
Magnit OJSC GDR (Reg. S) | 30,695 | | 859,460 |
OAO Gazprom sponsored ADR | 99,200 | | 1,692,352 |
Sberbank (Savings Bank of the Russian Federation) | 292,500 | | 1,066,946 |
TNK-BP Holding | 248,200 | | 805,986 |
TOTAL RUSSIA | | 5,270,919 |
South Africa - 1.8% |
AngloGold Ashanti Ltd. sponsored ADR | 20,000 | | 1,019,600 |
Naspers Ltd. Class N | 17,800 | | 1,070,371 |
Shoprite Holdings Ltd. | 58,800 | | 926,478 |
TOTAL SOUTH AFRICA | | 3,016,449 |
Common Stocks - continued |
| Shares | | Value |
Spain - 1.7% |
Banco Santander SA sponsored ADR | 144,201 | | $ 1,788,092 |
Inditex SA | 11,593 | | 1,039,566 |
TOTAL SPAIN | | 2,827,658 |
Switzerland - 4.2% |
Compagnie Financiere Richemont SA Series A | 19,359 | | 1,250,844 |
Credit Suisse Group sponsored ADR | 26,900 | | 1,223,681 |
Dufry AG (a) | 6,780 | | 886,341 |
The Swatch Group AG (Bearer) | 2,100 | | 1,032,827 |
Transocean Ltd. (a) | 14,800 | | 1,076,700 |
UBS AG (NY Shares) (a) | 73,200 | | 1,464,000 |
TOTAL SWITZERLAND | | 6,934,393 |
Taiwan - 0.8% |
HTC Corp. | 27,350 | | 1,239,498 |
Turkey - 0.6% |
Turkiye Garanti Bankasi AS | 177,000 | | 917,002 |
United Kingdom - 14.6% |
Anglo American PLC (United Kingdom) | 26,600 | | 1,386,521 |
Barclays PLC sponsored ADR (d) | 67,387 | | 1,283,722 |
BG Group PLC | 62,296 | | 1,595,748 |
BHP Billiton PLC ADR | 38,300 | | 3,224,091 |
British American Tobacco PLC (United Kingdom) | 37,400 | | 1,634,321 |
Burberry Group PLC | 48,100 | | 1,040,484 |
HSBC Holdings PLC sponsored ADR | 48,400 | | 2,636,348 |
Imperial Tobacco Group PLC | 34,786 | | 1,224,305 |
Lloyds Banking Group PLC (a) | 1,236,400 | | 1,227,606 |
Rio Tinto PLC | 29,300 | | 2,137,948 |
Royal Dutch Shell PLC Class B | 79,150 | | 3,079,400 |
SABMiller PLC | 31,300 | | 1,168,275 |
Standard Chartered PLC (United Kingdom) | 49,134 | | 1,361,598 |
Vedanta Resources PLC | 23,600 | | 916,548 |
TOTAL UNITED KINGDOM | | 23,916,915 |
United States of America - 9.5% |
Alpha Natural Resources, Inc. (a) | 15,600 | | 907,452 |
Apple, Inc. (a) | 2,300 | | 800,929 |
Citigroup, Inc. (a) | 181,064 | | 831,084 |
Concur Technologies, Inc. (a) | 14,833 | | 858,386 |
Freeport-McMoRan Copper & Gold, Inc. | 15,022 | | 826,661 |
Google, Inc. Class A (a) | 1,500 | | 816,150 |
JPMorgan Chase & Co. | 16,595 | | 757,230 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Juniper Networks, Inc. (a) | 20,100 | | $ 770,433 |
Las Vegas Sands Corp. (a) | 18,940 | | 890,369 |
MasterCard, Inc. Class A | 3,160 | | 871,812 |
Rackspace Hosting, Inc. (a) | 18,717 | | 864,538 |
Rovi Corp. (a) | 14,600 | | 708,976 |
salesforce.com, Inc. (a) | 6,100 | | 845,460 |
SuccessFactors, Inc. (a) | 20,800 | | 721,136 |
Tiffany & Co., Inc. | 12,856 | | 892,721 |
Visa, Inc. Class A | 10,740 | | 839,009 |
VMware, Inc. Class A (a) | 8,900 | | 849,327 |
Walter Energy, Inc. | 6,100 | | 843,142 |
Wells Fargo & Co. | 27,240 | | 792,956 |
TOTAL UNITED STATES OF AMERICA | | 15,687,771 |
TOTAL COMMON STOCKS (Cost $134,649,040) | 159,180,268 |
Nonconvertible Preferred Stocks - 1.9% |
| | | |
Germany - 0.7% |
Volkswagen AG | 6,300 | | 1,241,097 |
Italy - 1.2% |
Fiat Industrial SpA (a) | 103,094 | | 969,663 |
Fiat SpA (Risparmio Shares) | 114,007 | | 964,232 |
TOTAL ITALY | | 1,933,895 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $2,550,731) | 3,174,992 |
Money Market Funds - 4.1% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.13% (b) | 824,794 | | $ 824,794 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 5,863,746 | | 5,863,746 |
TOTAL MONEY MARKET FUNDS (Cost $6,688,540) | 6,688,540 |
TOTAL INVESTMENT PORTFOLIO - 102.9% (Cost $143,888,311) | | 169,043,800 |
NET OTHER ASSETS (LIABILITIES) - (2.9)% | | (4,723,294) |
NET ASSETS - 100% | $ 164,320,506 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $1,296,750 or 0.8% 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 | $ 733 |
Fidelity Securities Lending Cash Central Fund | 24,029 |
Total | $ 24,762 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
United Kingdom | $ 23,916,915 | $ 15,837,640 | $ 8,079,275 | $ - |
Japan | 23,682,443 | 2,722,031 | 20,960,412 | - |
United States of America | 15,687,771 | 15,687,771 | - | - |
France | 11,977,738 | 11,977,738 | - | - |
Brazil | 8,753,024 | 8,753,024 | - | - |
India | 7,438,201 | 6,688,460 | 749,741 | - |
Switzerland | 6,934,393 | 6,934,393 | - | - |
Canada | 6,885,869 | 6,255,735 | 630,134 | - |
Indonesia | 6,847,059 | 6,847,059 | - | - |
Other | 50,231,847 | 47,265,453 | 2,966,394 | - |
Money Market Funds | 6,688,540 | 6,688,540 | - | - |
Total Investments in Securities: | $ 169,043,800 | $ 135,657,844 | $ 33,385,956 | $ - |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $112,999,916 of which $89,032,044 and $23,967,872 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2011 (Unaudited) |
Assets | | |
Investment in securities, at value (including securities loaned of $5,615,504) - See accompanying schedule: Unaffiliated issuers (cost $137,199,771) | $ 162,355,260 | |
Fidelity Central Funds (cost $6,688,540) | 6,688,540 | |
Total Investments (cost $143,888,311) | | $ 169,043,800 |
Foreign currency held at value (cost $651,847) | | 652,129 |
Receivable for investments sold | | 4,741,571 |
Receivable for fund shares sold | | 128,516 |
Dividends receivable | | 766,424 |
Distributions receivable from Fidelity Central Funds | | 9,346 |
Prepaid expenses | | 157 |
Receivable from investment adviser for expense reductions | | 17,999 |
Other receivables | | 333,101 |
Total assets | | 175,693,043 |
| | |
Liabilities | | |
Payable to custodian bank | $ 80,196 | |
Payable for investments purchased | 4,494,161 | |
Payable for fund shares redeemed | 589,844 | |
Accrued management fee | 109,362 | |
Distribution and service plan fees payable | 67,438 | |
Other affiliated payables | 44,843 | |
Other payables and accrued expenses | 122,947 | |
Collateral on securities loaned, at value | 5,863,746 | |
Total liabilities | | 11,372,537 |
| | |
Net Assets | | $ 164,320,506 |
Net Assets consist of: | | |
Paid in capital | | $ 242,574,120 |
Undistributed net investment income | | 175,662 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (103,518,645) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 25,089,369 |
Net Assets | | $ 164,320,506 |
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, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($51,097,062 ÷ 4,235,247 shares) | | $ 12.06 |
| | |
Maximum offering price per share (100/94.25 of $12.06) | | $ 12.80 |
Class T:
Net Asset Value and redemption price per share ($75,678,728 ÷ 6,394,872 shares) | | $ 11.83 |
| | |
Maximum offering price per share (100/96.50 of $11.83) | | $ 12.26 |
Class B:
Net Asset Value and offering price per share ($6,745,412 ÷ 613,993 shares)A | | $ 10.99 |
| | |
Class C:
Net Asset Value and offering price per share ($25,653,233 ÷ 2,341,009 shares)A | | $ 10.96 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($5,146,071 ÷ 400,970 shares) | | $ 12.83 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 1,356,162 |
Special dividends | | 381,278 |
Interest | | 12 |
Income from Fidelity Central Funds | | 24,762 |
Income before foreign taxes withheld | | 1,762,214 |
Less foreign taxes withheld | | (89,792) |
Total income | | 1,672,422 |
| | |
Expenses | | |
Management fee
Basic fee | $ 567,704 | |
Performance adjustment | 67,625 | |
Transfer agent fees | 239,050 | |
Distribution and service plan fees | 408,300 | |
Accounting and security lending fees | 42,027 | |
Custodian fees and expenses | 107,912 | |
Independent trustees' compensation | 406 | |
Registration fees | 45,533 | |
Audit | 38,585 | |
Legal | 327 | |
Miscellaneous | 809 | |
Total expenses before reductions | 1,518,278 | |
Expense reductions | (204,404) | 1,313,874 |
Net investment income (loss) | | 358,548 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 13,114,986 | |
Foreign currency transactions | (69,747) | |
Total net realized gain (loss) | | 13,045,239 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $177,982) | 6,218,779 | |
Assets and liabilities in foreign currencies | 12,903 | |
Total change in net unrealized appreciation (depreciation) | | 6,231,682 |
Net gain (loss) | | 19,276,921 |
Net increase (decrease) in net assets resulting from operations | | $ 19,635,469 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 358,548 | $ 615,258 |
Net realized gain (loss) | 13,045,239 | 13,450,085 |
Change in net unrealized appreciation (depreciation) | 6,231,682 | 12,333,412 |
Net increase (decrease) in net assets resulting
from operations | 19,635,469 | 26,398,755 |
Distributions to shareholders from net investment income | (760,710) | (1,027,978) |
Distributions to shareholders from net realized gain | (1,721,042) | (2,639,506) |
Total distributions | (2,481,752) | (3,667,484) |
Share transactions - net increase (decrease) | (13,838,597) | (21,653,630) |
Redemption fees | 1,005 | 4,947 |
Total increase (decrease) in net assets | 3,316,125 | 1,082,588 |
| | |
Net Assets | | |
Beginning of period | 161,004,381 | 159,921,793 |
End of period (including undistributed net investment income of $175,662 and undistributed net investment income of $577,824, respectively) | $ 164,320,506 | $ 161,004,381 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.85 | $ 9.34 | $ 6.39 | $ 18.64 | $ 17.79 | $ 17.38 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .04 L | .06 | .09 | .11 | .07 | .12 |
Net realized and unrealized gain (loss) | 1.36 | 1.69 | 2.88 | (8.42) | 3.81 | 2.73 |
Total from investment operations | 1.40 | 1.75 | 2.97 | (8.31) | 3.88 | 2.85 |
Distributions from net investment income | (.08) | (.08) | (.02) | (.05) | (.12) | (.20) |
Distributions from net realized gain | (.12) | (.16) | - | (3.89) | (2.90) | (2.24) |
Total distributions | (.19) K | (.24) | (.02) | (3.94) | (3.03) J | (2.44) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 12.06 | $ 10.85 | $ 9.34 | $ 6.39 | $ 18.64 | $ 17.79 |
Total Return B,C,D | 13.10% | 18.98% | 46.61% | (55.70)% | 24.76% | 17.62% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.64% A | 1.45% | 1.27% | 1.42% | 1.47% | 1.43% |
Expenses net of fee waivers, if any | 1.44% A | 1.45% | 1.27% | 1.42% | 1.47% | 1.43% |
Expenses net of all reductions | 1.38% A | 1.27% | 1.15% | 1.25% | 1.39% | 1.32% |
Net investment income (loss) | .70% A,L | .66% | 1.22% | .95% | .39% | .70% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 51,097 | $ 49,058 | $ 43,389 | $ 35,517 | $ 113,579 | $ 110,240 |
Portfolio turnover rate G | 249% A | 490% | 414% | 394% | 146% | 170% |
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 $3.03 per share is comprised of distributions from net investment income of $.123 and distributions from net realized gain of $2.903 per share. K Total distributions of $.19 per share is comprised of distributions from net investment income of $.077 and distributions from net realized gain of $.116 per share. L Investment income per share reflects a special dividend which amounted to $.03 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .23%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.63 | $ 9.16 | $ 6.28 | $ 18.38 | $ 17.57 | $ 17.18 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 L | .04 | .07 | .08 | .03 | .08 |
Net realized and unrealized gain (loss) | 1.33 | 1.65 | 2.82 | (8.28) | 3.76 | 2.70 |
Total from investment operations | 1.36 | 1.69 | 2.89 | (8.20) | 3.79 | 2.78 |
Distributions from net investment income | (.05) | (.06) | (.01) | (.01) | (.07) | (.15) |
Distributions from net realized gain | (.12) | (.16) | - | (3.89) | (2.90) | (2.24) |
Total distributions | (.16) K | (.22) | (.01) | (3.90) | (2.98) J | (2.39) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 11.83 | $ 10.63 | $ 9.16 | $ 6.28 | $ 18.38 | $ 17.57 |
Total Return B,C,D | 12.97% | 18.65% | 46.23% | (55.79)% | 24.47% | 17.38% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.88% A | 1.69% | 1.52% | 1.65% | 1.69% | 1.65% |
Expenses net of fee waivers, if any | 1.69% A | 1.69% | 1.52% | 1.65% | 1.69% | 1.65% |
Expenses net of all reductions | 1.63% A | 1.51% | 1.41% | 1.48% | 1.61% | 1.54% |
Net investment income (loss) | .45% A,L | .42% | .96% | .71% | .18% | .48% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 75,679 | $ 74,056 | $ 78,005 | $ 57,603 | $ 179,990 | $ 188,320 |
Portfolio turnover rate G | 249% A | 490% | 414% | 394% | 146% | 170% |
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 $2.98 per share is comprised of distributions from net investment income of $0.74 and distributions from net realized gain of $2.903 per share. K Total 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. L Investment income per share reflects a special dividend which amounted to $.03 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.02)%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.84 | $ 8.51 | $ 5.86 | $ 17.36 | $ 16.72 | $ 16.46 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - I,K | (.01) | .03 | .02 | (.06) | (.02) |
Net realized and unrealized gain (loss) | 1.25 | 1.53 | 2.63 | (7.75) | 3.57 | 2.57 |
Total from investment operations | 1.25 | 1.52 | 2.66 | (7.73) | 3.51 | 2.55 |
Distributions from net investment income | (.01) | (.03) | (.01) | - | - | (.05) |
Distributions from net realized gain | (.09) | (.16) | - | (3.77) | (2.87) | (2.24) |
Total distributions | (.10) | (.19) | (.01) | (3.77) | (2.87) J | (2.29) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 10.99 | $ 9.84 | $ 8.51 | $ 5.86 | $ 17.36 | $ 16.72 |
Total Return B,C,D | 12.76% | 18.03% | 45.50% | (56.02)% | 23.85% | 16.58% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.39% A | 2.20% | 2.02% | 2.17% | 2.24% | 2.26% |
Expenses net of fee waivers, if any | 2.19% A | 2.20% | 2.02% | 2.17% | 2.24% | 2.25% |
Expenses net of all reductions | 2.13% A | 2.02% | 1.90% | 2.01% | 2.17% | 2.14% |
Net investment income (loss) | (.05)% A,K | (.09)% | .47% | .19% | (.38)% | (.13)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 6,745 | $ 8,737 | $ 10,661 | $ 10,356 | $ 40,013 | $ 51,661 |
Portfolio turnover rate G | 249% A | 490% | 414% | 394% | 146% | 170% |
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 $2.87 per share is comprised of distributions from net investment income of $.000 and distributions from net realized gain of $2.869 per share. K Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.52)%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.84 | $ 8.51 | $ 5.87 | $ 17.42 | $ 16.80 | $ 16.52 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - I,L | (.01) | .03 | .02 | (.05) | (.01) |
Net realized and unrealized gain (loss) | 1.24 | 1.53 | 2.62 | (7.75) | 3.57 | 2.60 |
Total from investment operations | 1.24 | 1.52 | 2.65 | (7.73) | 3.52 | 2.59 |
Distributions from net investment income | (.01) | (.04) | (.01) | - | - | (.07) |
Distributions from net realized gain | (.11) | (.16) | - | (3.82) | (2.90) | (2.24) |
Total distributions | (.12) | (.19) K | (.01) | (3.82) | (2.90) J | (2.31) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 10.96 | $ 9.84 | $ 8.51 | $ 5.87 | $ 17.42 | $ 16.80 |
Total Return B,C,D | 12.73% | 18.12% | 45.26% | (55.95)% | 23.85% | 16.75% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.39% A | 2.20% | 2.02% | 2.16% | 2.19% | 2.16% |
Expenses net of fee waivers, if any | 2.19% A | 2.20% | 2.02% | 2.16% | 2.19% | 2.16% |
Expenses net of all reductions | 2.13% A | 2.02% | 1.90% | 2.00% | 2.12% | 2.05% |
Net investment income (loss) | (.05)% A,L | (.09)% | .47% | .20% | (.33)% | (.03)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 25,653 | $ 24,809 | $ 24,575 | $ 20,973 | $ 66,298 | $ 66,162 |
Portfolio turnover rate G | 249% A | 490% | 414% | 394% | 146% | 170% |
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 $2.90 per share is comprised of distributions from net investment income of $.000 and distributions from net realized gain of $2.903 per share. K Total distributions of $.19 per share is comprised of distributions from net investment income of $.037 and distributions from net realized gain of $.155 per share. L Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.52)%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.54 | $ 9.91 | $ 6.77 | $ 19.49 | $ 18.46 | $ 17.70 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .06 K | .10 | .11 | .16 | .13 | .20 |
Net realized and unrealized gain (loss) | 1.45 | 1.78 | 3.05 | (8.88) | 3.97 | 2.80 |
Total from investment operations | 1.51 | 1.88 | 3.16 | (8.72) | 4.10 | 3.00 |
Distributions from net investment income | (.11) | (.09) | (.02) | (.11) | (.17) | - |
Distributions from net realized gain | (.12) | (.16) | - | (3.89) | (2.90) | (2.24) |
Total distributions | (.22) J | (.25) | (.02) | (4.00) | (3.07) I | (2.24) |
Redemption fees added to paid in capital D,H | - | - | - | - | - | - |
Net asset value, end of period | $ 12.83 | $ 11.54 | $ 9.91 | $ 6.77 | $ 19.49 | $ 18.46 |
Total Return B,C | 13.30% | 19.22% | 46.85% | (55.51)% | 25.16% | 18.09% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | 1.35% A | 1.19% | 1.00% | 1.12% | 1.14% | 1.04% |
Expenses net of fee waivers, if any | 1.19% A | 1.19% | 1.00% | 1.12% | 1.14% | 1.04% |
Expenses net of all reductions | 1.13% A | 1.01% | .89% | .95% | 1.07% | .93% |
Net investment income (loss) | .96% A,K | .93% | 1.48% | 1.24% | .72% | 1.08% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 5,146 | $ 4,345 | $ 3,292 | $ 3,620 | $ 17,463 | $ 24,536 |
Portfolio turnover rate F | 249% A | 490% | 414% | 394% | 146% | 170% |
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 $3.07 per share is comprised of distributions from net investment income of $.166 and distributions from net realized gain of $2.903 per share. J Total distributions of $.22 per share is comprised of distributions from net investment income of $.107 and distributions from net realized gain of $.116 per share. K Investment income per share reflects a special dividend which amounted to $.03 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .48%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2011 (Unaudited)
1. Organization.
Fidelity Advisor International Capital Appreciation Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
Semiannual Report
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on realized short term capital gains on securities of certain issuers domiciled in India. An estimated deferred tax liability for net unrealized gains on these securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), market discount, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 25,471,234 |
Gross unrealized depreciation | (2,092,208) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 23,379,026 |
| |
Tax cost | $ 145,664,774 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update changes the wording used to describe the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. The update is effective during interim and annual periods beginning after December 15, 2011. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Semiannual Report
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $196,669,276 and $213,270,691, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .79% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 62,546 | $ 2,897 |
Class T | .25% | .25% | 183,324 | 2,278 |
Class B | .75% | .25% | 38,324 | 28,994 |
Class C | .75% | .25% | 124,106 | 9,549 |
| | | $ 408,300 | $ 43,718 |
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% to 1% for Class B, 1% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. 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 | $ 4,743 |
Class T | 2,238 |
Class B* | 3,095 |
Class C* | 441 |
| $ 10,517 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 75,557 | .30 |
Class T | 107,835 | .29 |
Class B | 11,679 | .30 |
Class C | 37,591 | .30 |
Institutional Class | 6,388 | .27 |
| $ 239,050 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $3,190 for the period.
Semiannual Report
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $281 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and 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 $24,029. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Expense Reductions - continued
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.45% | $ 46,655 |
Class T | 1.70% | 65,478 |
Class B | 2.20% | 7,209 |
Class C | 2.20% | 23,271 |
Institutional Class | 1.20% | 3,662 |
| | $ 146,275 |
In addition, FMR voluntarily agreed to reimburse a portion of its management fee. For the period, the amount of this reimbursement was $6,986.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $51,143 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30, 2011 | Year ended
October 31, 2010 |
From net investment income | | |
Class A | $ 351,944 | $ 383,536 |
Class T | 323,075 | 471,584 |
Class B | 9,663 | 36,781 |
Class C | 29,995 | 106,805 |
Institutional Class | 46,033 | 29,272 |
Total | $ 760,710 | $ 1,027,978 |
From net realized gain | | |
Class A | $ 529,480 | $ 733,929 |
Class T | 797,756 | 1,218,258 |
Class B | 70,707 | 190,036 |
Class C | 273,307 | 447,425 |
Institutional Class | 49,792 | 49,858 |
Total | $ 1,721,042 | $ 2,639,506 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30, 2011 | Year ended
October 31, 2010 | Six months ended
April 30, 2011 | Year ended
October 31, 2010 |
Class A | | | | |
Shares sold | 424,142 | 1,168,786 | $ 4,740,658 | $ 11,452,442 |
Reinvestment of distributions | 72,790 | 106,693 | 801,552 | 1,040,260 |
Shares redeemed | (783,966) | (1,397,227) | (8,810,958) | (13,480,819) |
Net increase (decrease) | (287,034) | (121,748) | $ (3,268,748) | $ (988,117) |
Class T | | | | |
Shares sold | 356,438 | 1,177,459 | $ 3,909,577 | $ 11,400,103 |
Reinvestment of distributions | 101,007 | 172,890 | 1,092,104 | 1,656,289 |
Shares redeemed | (1,030,106) | (2,898,040) | (11,232,429) | (27,789,326) |
Net increase (decrease) | (572,661) | (1,547,691) | $ (6,230,748) | $ (14,732,934) |
Class B | | | | |
Shares sold | 8,024 | 77,104 | $ 80,422 | $ 688,128 |
Reinvestment of distributions | 7,318 | 23,836 | 73,635 | 212,377 |
Shares redeemed | (289,324) | (465,893) | (2,944,815) | (4,121,865) |
Net increase (decrease) | (273,982) | (364,953) | $ (2,790,758) | $ (3,221,360) |
Class C | | | | |
Shares sold | 129,146 | 282,999 | $ 1,310,250 | $ 2,536,029 |
Reinvestment of distributions | 27,032 | 55,698 | 271,185 | 495,715 |
Shares redeemed | (337,177) | (703,110) | (3,421,964) | (6,197,225) |
Net increase (decrease) | (180,999) | (364,413) | $ (1,840,529) | $ (3,165,481) |
Institutional Class | | | | |
Shares sold | 114,865 | 151,567 | $ 1,367,625 | $ 1,532,760 |
Reinvestment of distributions | 6,560 | 5,962 | 76,766 | 61,704 |
Shares redeemed | (96,898) | (113,282) | (1,152,205) | (1,140,202) |
Net increase (decrease) | 24,527 | 44,247 | $ 292,186 | $ 454,262 |
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.
FIL Investment Advisors
FIL Investments (Japan) Limited
FIL Investment Advisors (UK) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
AICAP-USAN-0611
1.784890.108
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
International Capital Appreciation
Fund - Institutional Class
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense
Ratio | Beginning
Account Value
November 1, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010 to
April 30, 2011 |
Class A | 1.44% | | | |
Actual | | $ 1,000.00 | $ 1,131.00 | $ 7.61 |
HypotheticalA | | $ 1,000.00 | $ 1,017.65 | $ 7.20 |
Class T | 1.69% | | | |
Actual | | $ 1,000.00 | $ 1,129.70 | $ 8.92 |
HypotheticalA | | $ 1,000.00 | $ 1,016.41 | $ 8.45 |
Class B | 2.19% | | | |
Actual | | $ 1,000.00 | $ 1,127.60 | $ 11.55 |
HypotheticalA | | $ 1,000.00 | $ 1,013.93 | $ 10.94 |
Class C | 2.19% | | | |
Actual | | $ 1,000.00 | $ 1,127.30 | $ 11.55 |
HypotheticalA | | $ 1,000.00 | $ 1,013.93 | $ 10.94 |
Institutional Class | 1.19% | | | |
Actual | | $ 1,000.00 | $ 1,133.00 | $ 6.29 |
HypotheticalA | | $ 1,000.00 | $ 1,018.89 | $ 5.96 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
BHP Billiton PLC ADR (United Kingdom, Metals & Mining) | 2.0 | 0.0 |
Royal Dutch Shell PLC Class B (United Kingdom, Oil, Gas & Consumable Fuels) | 1.9 | 1.8 |
HSBC Holdings PLC sponsored ADR (United Kingdom, Commercial Banks) | 1.6 | 0.0 |
Rio Tinto PLC (United Kingdom, Metals & Mining) | 1.3 | 0.0 |
Siemens AG sponsored ADR (Germany, Industrial Conglomerates) | 1.2 | 0.0 |
| 8.0 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 23.8 | 21.9 |
Financials | 20.2 | 21.9 |
Materials | 12.6 | 12.0 |
Industrials | 11.4 | 9.0 |
Consumer Staples | 10.2 | 11.3 |
Top Five Countries as of April 30, 2011 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 14.6 | 10.7 |
Japan | 14.4 | 7.5 |
United States of America | 9.5 | 8.1 |
France | 7.3 | 7.0 |
Brazil | 5.3 | 5.6 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011 | As of October 31, 2010 |
| Stocks 98.8% | | | Stocks 99.3% | |
| Short-Term
Investments and
Net Other Assets 1.2% | | | Short-Term
Investments and
Net Other Assets 0.7% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.9% |
| Shares | | Value |
Bailiwick of Jersey - 0.6% |
Randgold Resources Ltd. sponsored ADR | 10,400 | | $ 900,328 |
Belgium - 0.8% |
Anheuser-Busch InBev SA NV (d) | 19,499 | | 1,244,428 |
Bermuda - 2.0% |
China Yurun Food Group Ltd. | 235,000 | | 860,867 |
GOME Electrical Appliances Holdings Ltd. (a) | 2,323,000 | | 834,525 |
Huabao International Holdings Ltd. | 537,000 | | 796,549 |
Petra Diamonds Ltd. (a) | 277,600 | | 850,895 |
TOTAL BERMUDA | | 3,342,836 |
Brazil - 5.3% |
Banco Bradesco SA (PN) sponsored ADR | 57,600 | | 1,165,248 |
BR Malls Participacoes SA | 77,300 | | 813,632 |
Cia Hering SA | 41,900 | | 906,817 |
Companhia Brasileira de Distribuicao Grupo Pao de Acucar sponsored ADR (d) | 19,600 | | 891,016 |
Companhia de Bebidas das Americas (AmBev) (PN) sponsored ADR | 34,370 | | 1,119,775 |
Drogasil SA | 110,700 | | 795,087 |
Iguatemi Empresa de Shopping Centers SA | 34,100 | | 877,805 |
Itau Unibanco Banco Multiplo SA ADR (a)(e) | 54,600 | | 1,296,750 |
Mills Estruturas e Servicos de Engenharia SA | 64,900 | | 886,894 |
TOTAL BRAZIL | | 8,753,024 |
British Virgin Islands - 0.4% |
Sable Mining Africa Ltd. (a) | 1,766,200 | | 656,433 |
Canada - 4.2% |
Agnico-Eagle Mines Ltd. (Canada) | 13,400 | | 933,652 |
Aurcana Corp. | 1,523,900 | | 1,417,432 |
Aurcana Corp. warrants 11/30/13 (a) | 977,700 | | 630,134 |
Canadian Natural Resources Ltd. | 27,600 | | 1,298,463 |
Suncor Energy, Inc. | 32,600 | | 1,502,680 |
Teck Resources Ltd. Class B (sub. vtg.) | 20,300 | | 1,103,508 |
TOTAL CANADA | | 6,885,869 |
Cayman Islands - 3.6% |
Ajisen (China) Holdings Ltd. | 396,000 | | 790,338 |
Belle International Holdings Ltd. | 461,000 | | 899,883 |
Gourmet Master Co. Ltd. | 86,000 | | 899,425 |
Hengan International Group Co. Ltd. | 113,000 | | 881,733 |
Hengdeli Holdings Ltd. | 1,380,000 | | 826,262 |
Common Stocks - continued |
| Shares | | Value |
Cayman Islands - continued |
Maoye International Holdings Ltd. | 1,657,000 | | $ 838,496 |
Shenguan Holdings Group Ltd. | 610,000 | | 810,579 |
TOTAL CAYMAN ISLANDS | | 5,946,716 |
China - 2.0% |
Agricultural Bank China Ltd. (H Shares) | 1,640,000 | | 969,265 |
Baidu.com, Inc. sponsored ADR (a) | 5,500 | | 816,860 |
Golden Eagle Retail Group Ltd. (H Shares) | 279,000 | | 731,062 |
Suning Appliance Chain Store Co. Ltd. (UBS Warrant Programme) warrants 1/7/14 (a) | 359,800 | | 722,815 |
TOTAL CHINA | | 3,240,002 |
Denmark - 1.2% |
Carlsberg A/S Series B | 8,000 | | 950,168 |
Pandora A/S (d) | 20,800 | | 936,948 |
TOTAL DENMARK | | 1,887,116 |
France - 7.3% |
Alstom SA | 14,332 | | 953,056 |
Atos Origin SA (a) | 14,138 | | 871,259 |
AXA SA (d) | 49,200 | | 1,104,057 |
BNP Paribas SA | 18,804 | | 1,488,158 |
Christian Dior SA | 6,300 | | 1,011,075 |
Credit Agricole SA | 56,300 | | 937,321 |
LVMH Moet Hennessy - Louis Vuitton | 7,045 | | 1,265,250 |
PPR SA | 5,600 | | 1,001,587 |
Renault SA | 16,100 | | 981,079 |
Schneider Electric SA | 6,862 | | 1,212,565 |
Societe Generale Series A | 17,227 | | 1,152,331 |
TOTAL FRANCE | | 11,977,738 |
Germany - 3.4% |
Bayerische Motoren Werke AG (BMW) | 12,248 | | 1,155,084 |
Daimler AG (Germany) | 19,307 | | 1,492,505 |
HeidelbergCement AG (d) | 12,138 | | 928,246 |
Siemens AG sponsored ADR | 13,200 | | 1,926,408 |
TOTAL GERMANY | | 5,502,243 |
Hong Kong - 0.7% |
CNOOC Ltd. sponsored ADR (d) | 4,900 | | 1,222,305 |
India - 4.5% |
Bank of Baroda | 35,783 | | 749,741 |
Exide Industries Ltd. | 264,734 | | 914,052 |
Common Stocks - continued |
| Shares | | Value |
India - continued |
Gitanjali Gems Ltd. | 136,527 | | $ 823,080 |
Housing Development and Infrastructure Ltd. (a) | 191,136 | | 694,706 |
Housing Development Finance Corp. Ltd. | 61,975 | | 989,807 |
ITC Ltd. | 205,597 | | 893,607 |
Jain Irrigation Systems Ltd. | 180,382 | | 745,495 |
Sun TV Ltd. | 83,306 | | 803,036 |
Titan Industries Ltd. | 9,057 | | 824,677 |
TOTAL INDIA | | 7,438,201 |
Indonesia - 4.2% |
PT Ace Hardware Indonesia Tbk | 2,469,500 | | 764,150 |
PT Astra International Tbk | 146,500 | | 960,531 |
PT Bank Rakyat Indonesia Tbk | 1,215,000 | | 915,082 |
PT Bumi Resources Tbk | 2,246,000 | | 898,244 |
PT Global Mediacom Tbk | 8,713,500 | | 763,093 |
PT Gudang Garam Tbk | 166,000 | | 786,970 |
PT Indofood Sukses Makmur Tbk (a) | 1,346,500 | | 849,032 |
PT Mitra Adiperkasa Tbk | 2,379,500 | | 909,957 |
TOTAL INDONESIA | | 6,847,059 |
Italy - 1.2% |
Prysmian SpA | 39,216 | | 925,322 |
Saipem SpA | 17,433 | | 989,748 |
TOTAL ITALY | | 1,915,070 |
Japan - 14.4% |
Canon, Inc. sponsored ADR | 27,300 | | 1,287,741 |
Denso Corp. | 28,900 | | 967,061 |
Fanuc Ltd. | 6,700 | | 1,121,438 |
Hitachi Ltd. | 209,000 | | 1,134,256 |
Honda Motor Co. Ltd. sponsored ADR | 37,400 | | 1,434,290 |
Itochu Corp. | 92,200 | | 960,340 |
Japan Tobacco, Inc. | 268 | | 1,041,399 |
Kayaba Industry Co. Ltd. | 109,000 | | 906,659 |
Keyence Corp. | 3,500 | | 924,788 |
Komatsu Ltd. | 31,200 | | 1,099,958 |
Kubota Corp. | 99,000 | | 949,111 |
Makita Corp. | 18,900 | | 868,931 |
Marubeni Corp. | 134,000 | | 978,834 |
Mitsubishi Corp. | 41,700 | | 1,131,084 |
Mitsubishi Electric Corp. | 95,000 | | 1,057,532 |
Mitsui & Co. Ltd. | 63,100 | | 1,122,732 |
Omron Corp. | 33,700 | | 926,793 |
Common Stocks - continued |
| Shares | | Value |
Japan - continued |
ORIX Corp. | 9,090 | | $ 892,938 |
Rakuten, Inc. | 911 | | 845,805 |
SMC Corp. | 5,500 | | 1,004,591 |
SOFTBANK CORP. | 27,100 | | 1,143,393 |
Sony Corp. | 35,100 | | 990,943 |
THK Co. Ltd. | 34,700 | | 891,826 |
TOTAL JAPAN | | 23,682,443 |
Korea (South) - 1.3% |
Hyundai Motor Co. | 5,683 | | 1,311,052 |
Lock & Lock Co. Ltd. | 23,690 | | 868,005 |
TOTAL KOREA (SOUTH) | | 2,179,057 |
Mexico - 1.2% |
Grupo Mexico SA de CV Series B | 284,300 | | 984,493 |
Grupo Televisa SA de CV (CPO) sponsored ADR (a) | 40,800 | | 967,776 |
TOTAL MEXICO | | 1,952,269 |
Netherlands - 1.3% |
AEGON NV (a) | 125,700 | | 999,151 |
ING Groep NV sponsored ADR (a) | 91,294 | | 1,204,168 |
TOTAL NETHERLANDS | | 2,203,319 |
Nigeria - 0.4% |
Guaranty Trust Bank PLC GDR (Reg. S) | 111,934 | | 705,184 |
Norway - 0.5% |
Aker Solutions ASA | 36,800 | | 888,023 |
Russia - 3.2% |
LSR Group OJSC GDR (Reg. S) (a) | 90,500 | | 846,175 |
Magnit OJSC GDR (Reg. S) | 30,695 | | 859,460 |
OAO Gazprom sponsored ADR | 99,200 | | 1,692,352 |
Sberbank (Savings Bank of the Russian Federation) | 292,500 | | 1,066,946 |
TNK-BP Holding | 248,200 | | 805,986 |
TOTAL RUSSIA | | 5,270,919 |
South Africa - 1.8% |
AngloGold Ashanti Ltd. sponsored ADR | 20,000 | | 1,019,600 |
Naspers Ltd. Class N | 17,800 | | 1,070,371 |
Shoprite Holdings Ltd. | 58,800 | | 926,478 |
TOTAL SOUTH AFRICA | | 3,016,449 |
Common Stocks - continued |
| Shares | | Value |
Spain - 1.7% |
Banco Santander SA sponsored ADR | 144,201 | | $ 1,788,092 |
Inditex SA | 11,593 | | 1,039,566 |
TOTAL SPAIN | | 2,827,658 |
Switzerland - 4.2% |
Compagnie Financiere Richemont SA Series A | 19,359 | | 1,250,844 |
Credit Suisse Group sponsored ADR | 26,900 | | 1,223,681 |
Dufry AG (a) | 6,780 | | 886,341 |
The Swatch Group AG (Bearer) | 2,100 | | 1,032,827 |
Transocean Ltd. (a) | 14,800 | | 1,076,700 |
UBS AG (NY Shares) (a) | 73,200 | | 1,464,000 |
TOTAL SWITZERLAND | | 6,934,393 |
Taiwan - 0.8% |
HTC Corp. | 27,350 | | 1,239,498 |
Turkey - 0.6% |
Turkiye Garanti Bankasi AS | 177,000 | | 917,002 |
United Kingdom - 14.6% |
Anglo American PLC (United Kingdom) | 26,600 | | 1,386,521 |
Barclays PLC sponsored ADR (d) | 67,387 | | 1,283,722 |
BG Group PLC | 62,296 | | 1,595,748 |
BHP Billiton PLC ADR | 38,300 | | 3,224,091 |
British American Tobacco PLC (United Kingdom) | 37,400 | | 1,634,321 |
Burberry Group PLC | 48,100 | | 1,040,484 |
HSBC Holdings PLC sponsored ADR | 48,400 | | 2,636,348 |
Imperial Tobacco Group PLC | 34,786 | | 1,224,305 |
Lloyds Banking Group PLC (a) | 1,236,400 | | 1,227,606 |
Rio Tinto PLC | 29,300 | | 2,137,948 |
Royal Dutch Shell PLC Class B | 79,150 | | 3,079,400 |
SABMiller PLC | 31,300 | | 1,168,275 |
Standard Chartered PLC (United Kingdom) | 49,134 | | 1,361,598 |
Vedanta Resources PLC | 23,600 | | 916,548 |
TOTAL UNITED KINGDOM | | 23,916,915 |
United States of America - 9.5% |
Alpha Natural Resources, Inc. (a) | 15,600 | | 907,452 |
Apple, Inc. (a) | 2,300 | | 800,929 |
Citigroup, Inc. (a) | 181,064 | | 831,084 |
Concur Technologies, Inc. (a) | 14,833 | | 858,386 |
Freeport-McMoRan Copper & Gold, Inc. | 15,022 | | 826,661 |
Google, Inc. Class A (a) | 1,500 | | 816,150 |
JPMorgan Chase & Co. | 16,595 | | 757,230 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
Juniper Networks, Inc. (a) | 20,100 | | $ 770,433 |
Las Vegas Sands Corp. (a) | 18,940 | | 890,369 |
MasterCard, Inc. Class A | 3,160 | | 871,812 |
Rackspace Hosting, Inc. (a) | 18,717 | | 864,538 |
Rovi Corp. (a) | 14,600 | | 708,976 |
salesforce.com, Inc. (a) | 6,100 | | 845,460 |
SuccessFactors, Inc. (a) | 20,800 | | 721,136 |
Tiffany & Co., Inc. | 12,856 | | 892,721 |
Visa, Inc. Class A | 10,740 | | 839,009 |
VMware, Inc. Class A (a) | 8,900 | | 849,327 |
Walter Energy, Inc. | 6,100 | | 843,142 |
Wells Fargo & Co. | 27,240 | | 792,956 |
TOTAL UNITED STATES OF AMERICA | | 15,687,771 |
TOTAL COMMON STOCKS (Cost $134,649,040) | 159,180,268 |
Nonconvertible Preferred Stocks - 1.9% |
| | | |
Germany - 0.7% |
Volkswagen AG | 6,300 | | 1,241,097 |
Italy - 1.2% |
Fiat Industrial SpA (a) | 103,094 | | 969,663 |
Fiat SpA (Risparmio Shares) | 114,007 | | 964,232 |
TOTAL ITALY | | 1,933,895 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $2,550,731) | 3,174,992 |
Money Market Funds - 4.1% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.13% (b) | 824,794 | | $ 824,794 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 5,863,746 | | 5,863,746 |
TOTAL MONEY MARKET FUNDS (Cost $6,688,540) | 6,688,540 |
TOTAL INVESTMENT PORTFOLIO - 102.9% (Cost $143,888,311) | | 169,043,800 |
NET OTHER ASSETS (LIABILITIES) - (2.9)% | | (4,723,294) |
NET ASSETS - 100% | $ 164,320,506 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $1,296,750 or 0.8% 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 | $ 733 |
Fidelity Securities Lending Cash Central Fund | 24,029 |
Total | $ 24,762 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
United Kingdom | $ 23,916,915 | $ 15,837,640 | $ 8,079,275 | $ - |
Japan | 23,682,443 | 2,722,031 | 20,960,412 | - |
United States of America | 15,687,771 | 15,687,771 | - | - |
France | 11,977,738 | 11,977,738 | - | - |
Brazil | 8,753,024 | 8,753,024 | - | - |
India | 7,438,201 | 6,688,460 | 749,741 | - |
Switzerland | 6,934,393 | 6,934,393 | - | - |
Canada | 6,885,869 | 6,255,735 | 630,134 | - |
Indonesia | 6,847,059 | 6,847,059 | - | - |
Other | 50,231,847 | 47,265,453 | 2,966,394 | - |
Money Market Funds | 6,688,540 | 6,688,540 | - | - |
Total Investments in Securities: | $ 169,043,800 | $ 135,657,844 | $ 33,385,956 | $ - |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $112,999,916 of which $89,032,044 and $23,967,872 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2011 (Unaudited) |
Assets | | |
Investment in securities, at value (including securities loaned of $5,615,504) - See accompanying schedule: Unaffiliated issuers (cost $137,199,771) | $ 162,355,260 | |
Fidelity Central Funds (cost $6,688,540) | 6,688,540 | |
Total Investments (cost $143,888,311) | | $ 169,043,800 |
Foreign currency held at value (cost $651,847) | | 652,129 |
Receivable for investments sold | | 4,741,571 |
Receivable for fund shares sold | | 128,516 |
Dividends receivable | | 766,424 |
Distributions receivable from Fidelity Central Funds | | 9,346 |
Prepaid expenses | | 157 |
Receivable from investment adviser for expense reductions | | 17,999 |
Other receivables | | 333,101 |
Total assets | | 175,693,043 |
| | |
Liabilities | | |
Payable to custodian bank | $ 80,196 | |
Payable for investments purchased | 4,494,161 | |
Payable for fund shares redeemed | 589,844 | |
Accrued management fee | 109,362 | |
Distribution and service plan fees payable | 67,438 | |
Other affiliated payables | 44,843 | |
Other payables and accrued expenses | 122,947 | |
Collateral on securities loaned, at value | 5,863,746 | |
Total liabilities | | 11,372,537 |
| | |
Net Assets | | $ 164,320,506 |
Net Assets consist of: | | |
Paid in capital | | $ 242,574,120 |
Undistributed net investment income | | 175,662 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (103,518,645) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 25,089,369 |
Net Assets | | $ 164,320,506 |
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, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($51,097,062 ÷ 4,235,247 shares) | | $ 12.06 |
| | |
Maximum offering price per share (100/94.25 of $12.06) | | $ 12.80 |
Class T:
Net Asset Value and redemption price per share ($75,678,728 ÷ 6,394,872 shares) | | $ 11.83 |
| | |
Maximum offering price per share (100/96.50 of $11.83) | | $ 12.26 |
Class B:
Net Asset Value and offering price per share ($6,745,412 ÷ 613,993 shares)A | | $ 10.99 |
| | |
Class C:
Net Asset Value and offering price per share ($25,653,233 ÷ 2,341,009 shares)A | | $ 10.96 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($5,146,071 ÷ 400,970 shares) | | $ 12.83 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 1,356,162 |
Special dividends | | 381,278 |
Interest | | 12 |
Income from Fidelity Central Funds | | 24,762 |
Income before foreign taxes withheld | | 1,762,214 |
Less foreign taxes withheld | | (89,792) |
Total income | | 1,672,422 |
| | |
Expenses | | |
Management fee
Basic fee | $ 567,704 | |
Performance adjustment | 67,625 | |
Transfer agent fees | 239,050 | |
Distribution and service plan fees | 408,300 | |
Accounting and security lending fees | 42,027 | |
Custodian fees and expenses | 107,912 | |
Independent trustees' compensation | 406 | |
Registration fees | 45,533 | |
Audit | 38,585 | |
Legal | 327 | |
Miscellaneous | 809 | |
Total expenses before reductions | 1,518,278 | |
Expense reductions | (204,404) | 1,313,874 |
Net investment income (loss) | | 358,548 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 13,114,986 | |
Foreign currency transactions | (69,747) | |
Total net realized gain (loss) | | 13,045,239 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $177,982) | 6,218,779 | |
Assets and liabilities in foreign currencies | 12,903 | |
Total change in net unrealized appreciation (depreciation) | | 6,231,682 |
Net gain (loss) | | 19,276,921 |
Net increase (decrease) in net assets resulting from operations | | $ 19,635,469 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 358,548 | $ 615,258 |
Net realized gain (loss) | 13,045,239 | 13,450,085 |
Change in net unrealized appreciation (depreciation) | 6,231,682 | 12,333,412 |
Net increase (decrease) in net assets resulting
from operations | 19,635,469 | 26,398,755 |
Distributions to shareholders from net investment income | (760,710) | (1,027,978) |
Distributions to shareholders from net realized gain | (1,721,042) | (2,639,506) |
Total distributions | (2,481,752) | (3,667,484) |
Share transactions - net increase (decrease) | (13,838,597) | (21,653,630) |
Redemption fees | 1,005 | 4,947 |
Total increase (decrease) in net assets | 3,316,125 | 1,082,588 |
| | |
Net Assets | | |
Beginning of period | 161,004,381 | 159,921,793 |
End of period (including undistributed net investment income of $175,662 and undistributed net investment income of $577,824, respectively) | $ 164,320,506 | $ 161,004,381 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.85 | $ 9.34 | $ 6.39 | $ 18.64 | $ 17.79 | $ 17.38 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .04 L | .06 | .09 | .11 | .07 | .12 |
Net realized and unrealized gain (loss) | 1.36 | 1.69 | 2.88 | (8.42) | 3.81 | 2.73 |
Total from investment operations | 1.40 | 1.75 | 2.97 | (8.31) | 3.88 | 2.85 |
Distributions from net investment income | (.08) | (.08) | (.02) | (.05) | (.12) | (.20) |
Distributions from net realized gain | (.12) | (.16) | - | (3.89) | (2.90) | (2.24) |
Total distributions | (.19) K | (.24) | (.02) | (3.94) | (3.03) J | (2.44) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 12.06 | $ 10.85 | $ 9.34 | $ 6.39 | $ 18.64 | $ 17.79 |
Total Return B,C,D | 13.10% | 18.98% | 46.61% | (55.70)% | 24.76% | 17.62% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.64% A | 1.45% | 1.27% | 1.42% | 1.47% | 1.43% |
Expenses net of fee waivers, if any | 1.44% A | 1.45% | 1.27% | 1.42% | 1.47% | 1.43% |
Expenses net of all reductions | 1.38% A | 1.27% | 1.15% | 1.25% | 1.39% | 1.32% |
Net investment income (loss) | .70% A,L | .66% | 1.22% | .95% | .39% | .70% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 51,097 | $ 49,058 | $ 43,389 | $ 35,517 | $ 113,579 | $ 110,240 |
Portfolio turnover rate G | 249% A | 490% | 414% | 394% | 146% | 170% |
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 $3.03 per share is comprised of distributions from net investment income of $.123 and distributions from net realized gain of $2.903 per share. K Total distributions of $.19 per share is comprised of distributions from net investment income of $.077 and distributions from net realized gain of $.116 per share. L Investment income per share reflects a special dividend which amounted to $.03 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .23%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.63 | $ 9.16 | $ 6.28 | $ 18.38 | $ 17.57 | $ 17.18 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 L | .04 | .07 | .08 | .03 | .08 |
Net realized and unrealized gain (loss) | 1.33 | 1.65 | 2.82 | (8.28) | 3.76 | 2.70 |
Total from investment operations | 1.36 | 1.69 | 2.89 | (8.20) | 3.79 | 2.78 |
Distributions from net investment income | (.05) | (.06) | (.01) | (.01) | (.07) | (.15) |
Distributions from net realized gain | (.12) | (.16) | - | (3.89) | (2.90) | (2.24) |
Total distributions | (.16) K | (.22) | (.01) | (3.90) | (2.98) J | (2.39) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 11.83 | $ 10.63 | $ 9.16 | $ 6.28 | $ 18.38 | $ 17.57 |
Total Return B,C,D | 12.97% | 18.65% | 46.23% | (55.79)% | 24.47% | 17.38% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.88% A | 1.69% | 1.52% | 1.65% | 1.69% | 1.65% |
Expenses net of fee waivers, if any | 1.69% A | 1.69% | 1.52% | 1.65% | 1.69% | 1.65% |
Expenses net of all reductions | 1.63% A | 1.51% | 1.41% | 1.48% | 1.61% | 1.54% |
Net investment income (loss) | .45% A,L | .42% | .96% | .71% | .18% | .48% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 75,679 | $ 74,056 | $ 78,005 | $ 57,603 | $ 179,990 | $ 188,320 |
Portfolio turnover rate G | 249% A | 490% | 414% | 394% | 146% | 170% |
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 $2.98 per share is comprised of distributions from net investment income of $0.74 and distributions from net realized gain of $2.903 per share. K Total 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. L Investment income per share reflects a special dividend which amounted to $.03 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.02)%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.84 | $ 8.51 | $ 5.86 | $ 17.36 | $ 16.72 | $ 16.46 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - I,K | (.01) | .03 | .02 | (.06) | (.02) |
Net realized and unrealized gain (loss) | 1.25 | 1.53 | 2.63 | (7.75) | 3.57 | 2.57 |
Total from investment operations | 1.25 | 1.52 | 2.66 | (7.73) | 3.51 | 2.55 |
Distributions from net investment income | (.01) | (.03) | (.01) | - | - | (.05) |
Distributions from net realized gain | (.09) | (.16) | - | (3.77) | (2.87) | (2.24) |
Total distributions | (.10) | (.19) | (.01) | (3.77) | (2.87) J | (2.29) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 10.99 | $ 9.84 | $ 8.51 | $ 5.86 | $ 17.36 | $ 16.72 |
Total Return B,C,D | 12.76% | 18.03% | 45.50% | (56.02)% | 23.85% | 16.58% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.39% A | 2.20% | 2.02% | 2.17% | 2.24% | 2.26% |
Expenses net of fee waivers, if any | 2.19% A | 2.20% | 2.02% | 2.17% | 2.24% | 2.25% |
Expenses net of all reductions | 2.13% A | 2.02% | 1.90% | 2.01% | 2.17% | 2.14% |
Net investment income (loss) | (.05)% A,K | (.09)% | .47% | .19% | (.38)% | (.13)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 6,745 | $ 8,737 | $ 10,661 | $ 10,356 | $ 40,013 | $ 51,661 |
Portfolio turnover rate G | 249% A | 490% | 414% | 394% | 146% | 170% |
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 $2.87 per share is comprised of distributions from net investment income of $.000 and distributions from net realized gain of $2.869 per share. K Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.52)%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.84 | $ 8.51 | $ 5.87 | $ 17.42 | $ 16.80 | $ 16.52 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - I,L | (.01) | .03 | .02 | (.05) | (.01) |
Net realized and unrealized gain (loss) | 1.24 | 1.53 | 2.62 | (7.75) | 3.57 | 2.60 |
Total from investment operations | 1.24 | 1.52 | 2.65 | (7.73) | 3.52 | 2.59 |
Distributions from net investment income | (.01) | (.04) | (.01) | - | - | (.07) |
Distributions from net realized gain | (.11) | (.16) | - | (3.82) | (2.90) | (2.24) |
Total distributions | (.12) | (.19) K | (.01) | (3.82) | (2.90) J | (2.31) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 10.96 | $ 9.84 | $ 8.51 | $ 5.87 | $ 17.42 | $ 16.80 |
Total Return B,C,D | 12.73% | 18.12% | 45.26% | (55.95)% | 23.85% | 16.75% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.39% A | 2.20% | 2.02% | 2.16% | 2.19% | 2.16% |
Expenses net of fee waivers, if any | 2.19% A | 2.20% | 2.02% | 2.16% | 2.19% | 2.16% |
Expenses net of all reductions | 2.13% A | 2.02% | 1.90% | 2.00% | 2.12% | 2.05% |
Net investment income (loss) | (.05)% A,L | (.09)% | .47% | .20% | (.33)% | (.03)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 25,653 | $ 24,809 | $ 24,575 | $ 20,973 | $ 66,298 | $ 66,162 |
Portfolio turnover rate G | 249% A | 490% | 414% | 394% | 146% | 170% |
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 $2.90 per share is comprised of distributions from net investment income of $.000 and distributions from net realized gain of $2.903 per share. K Total distributions of $.19 per share is comprised of distributions from net investment income of $.037 and distributions from net realized gain of $.155 per share. L Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.52)%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.54 | $ 9.91 | $ 6.77 | $ 19.49 | $ 18.46 | $ 17.70 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .06 K | .10 | .11 | .16 | .13 | .20 |
Net realized and unrealized gain (loss) | 1.45 | 1.78 | 3.05 | (8.88) | 3.97 | 2.80 |
Total from investment operations | 1.51 | 1.88 | 3.16 | (8.72) | 4.10 | 3.00 |
Distributions from net investment income | (.11) | (.09) | (.02) | (.11) | (.17) | - |
Distributions from net realized gain | (.12) | (.16) | - | (3.89) | (2.90) | (2.24) |
Total distributions | (.22) J | (.25) | (.02) | (4.00) | (3.07) I | (2.24) |
Redemption fees added to paid in capital D,H | - | - | - | - | - | - |
Net asset value, end of period | $ 12.83 | $ 11.54 | $ 9.91 | $ 6.77 | $ 19.49 | $ 18.46 |
Total Return B,C | 13.30% | 19.22% | 46.85% | (55.51)% | 25.16% | 18.09% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | 1.35% A | 1.19% | 1.00% | 1.12% | 1.14% | 1.04% |
Expenses net of fee waivers, if any | 1.19% A | 1.19% | 1.00% | 1.12% | 1.14% | 1.04% |
Expenses net of all reductions | 1.13% A | 1.01% | .89% | .95% | 1.07% | .93% |
Net investment income (loss) | .96% A,K | .93% | 1.48% | 1.24% | .72% | 1.08% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 5,146 | $ 4,345 | $ 3,292 | $ 3,620 | $ 17,463 | $ 24,536 |
Portfolio turnover rate F | 249% A | 490% | 414% | 394% | 146% | 170% |
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 $3.07 per share is comprised of distributions from net investment income of $.166 and distributions from net realized gain of $2.903 per share. J Total distributions of $.22 per share is comprised of distributions from net investment income of $.107 and distributions from net realized gain of $.116 per share. K Investment income per share reflects a special dividend which amounted to $.03 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .48%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2011 (Unaudited)
1. Organization.
Fidelity Advisor International Capital Appreciation Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
Semiannual Report
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on realized short term capital gains on securities of certain issuers domiciled in India. An estimated deferred tax liability for net unrealized gains on these securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), market discount, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 25,471,234 |
Gross unrealized depreciation | (2,092,208) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 23,379,026 |
| |
Tax cost | $ 145,664,774 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update changes the wording used to describe the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. The update is effective during interim and annual periods beginning after December 15, 2011. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Semiannual Report
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $196,669,276 and $213,270,691, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .79% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 62,546 | $ 2,897 |
Class T | .25% | .25% | 183,324 | 2,278 |
Class B | .75% | .25% | 38,324 | 28,994 |
Class C | .75% | .25% | 124,106 | 9,549 |
| | | $ 408,300 | $ 43,718 |
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% to 1% for Class B, 1% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. 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 | $ 4,743 |
Class T | 2,238 |
Class B* | 3,095 |
Class C* | 441 |
| $ 10,517 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 75,557 | .30 |
Class T | 107,835 | .29 |
Class B | 11,679 | .30 |
Class C | 37,591 | .30 |
Institutional Class | 6,388 | .27 |
| $ 239,050 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $3,190 for the period.
Semiannual Report
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $281 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and 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 $24,029. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Expense Reductions - continued
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.45% | $ 46,655 |
Class T | 1.70% | 65,478 |
Class B | 2.20% | 7,209 |
Class C | 2.20% | 23,271 |
Institutional Class | 1.20% | 3,662 |
| | $ 146,275 |
In addition, FMR voluntarily agreed to reimburse a portion of its management fee. For the period, the amount of this reimbursement was $6,986.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $51,143 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30, 2011 | Year ended
October 31, 2010 |
From net investment income | | |
Class A | $ 351,944 | $ 383,536 |
Class T | 323,075 | 471,584 |
Class B | 9,663 | 36,781 |
Class C | 29,995 | 106,805 |
Institutional Class | 46,033 | 29,272 |
Total | $ 760,710 | $ 1,027,978 |
From net realized gain | | |
Class A | $ 529,480 | $ 733,929 |
Class T | 797,756 | 1,218,258 |
Class B | 70,707 | 190,036 |
Class C | 273,307 | 447,425 |
Institutional Class | 49,792 | 49,858 |
Total | $ 1,721,042 | $ 2,639,506 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30, 2011 | Year ended
October 31, 2010 | Six months ended
April 30, 2011 | Year ended
October 31, 2010 |
Class A | | | | |
Shares sold | 424,142 | 1,168,786 | $ 4,740,658 | $ 11,452,442 |
Reinvestment of distributions | 72,790 | 106,693 | 801,552 | 1,040,260 |
Shares redeemed | (783,966) | (1,397,227) | (8,810,958) | (13,480,819) |
Net increase (decrease) | (287,034) | (121,748) | $ (3,268,748) | $ (988,117) |
Class T | | | | |
Shares sold | 356,438 | 1,177,459 | $ 3,909,577 | $ 11,400,103 |
Reinvestment of distributions | 101,007 | 172,890 | 1,092,104 | 1,656,289 |
Shares redeemed | (1,030,106) | (2,898,040) | (11,232,429) | (27,789,326) |
Net increase (decrease) | (572,661) | (1,547,691) | $ (6,230,748) | $ (14,732,934) |
Class B | | | | |
Shares sold | 8,024 | 77,104 | $ 80,422 | $ 688,128 |
Reinvestment of distributions | 7,318 | 23,836 | 73,635 | 212,377 |
Shares redeemed | (289,324) | (465,893) | (2,944,815) | (4,121,865) |
Net increase (decrease) | (273,982) | (364,953) | $ (2,790,758) | $ (3,221,360) |
Class C | | | | |
Shares sold | 129,146 | 282,999 | $ 1,310,250 | $ 2,536,029 |
Reinvestment of distributions | 27,032 | 55,698 | 271,185 | 495,715 |
Shares redeemed | (337,177) | (703,110) | (3,421,964) | (6,197,225) |
Net increase (decrease) | (180,999) | (364,413) | $ (1,840,529) | $ (3,165,481) |
Institutional Class | | | | |
Shares sold | 114,865 | 151,567 | $ 1,367,625 | $ 1,532,760 |
Reinvestment of distributions | 6,560 | 5,962 | 76,766 | 61,704 |
Shares redeemed | (96,898) | (113,282) | (1,152,205) | (1,140,202) |
Net increase (decrease) | 24,527 | 44,247 | $ 292,186 | $ 454,262 |
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.
FIL Investment Advisors
FIL Investments (Japan) Limited
FIL Investment Advisors (UK) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
AICAPI-USAN-0611
1.784891.108
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Overseas
Fund - Class A, Class T, Class B and Class C
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense
Ratio | Beginning
Account Value
November 1, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010 to
April 30, 2011 |
Class A | 1.36% | | | |
Actual | | $ 1,000.00 | $ 1,142.50 | $ 7.22 |
HypotheticalA | | $ 1,000.00 | $ 1,018.05 | $ 6.81 |
Class T | 1.53% | | | |
Actual | | $ 1,000.00 | $ 1,141.50 | $ 8.12 |
HypotheticalA | | $ 1,000.00 | $ 1,017.21 | $ 7.65 |
Class B | 2.11% | | | |
Actual | | $ 1,000.00 | $ 1,138.40 | $ 11.19 |
HypotheticalA | | $ 1,000.00 | $ 1,014.33 | $ 10.54 |
Class C | 2.11% | | | |
Actual | | $ 1,000.00 | $ 1,138.40 | $ 11.19 |
HypotheticalA | | $ 1,000.00 | $ 1,014.33 | $ 10.54 |
Institutional Class | 1.01% | | | |
Actual | | $ 1,000.00 | $ 1,144.10 | $ 5.37 |
HypotheticalA | | $ 1,000.00 | $ 1,019.79 | $ 5.06 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
LVMH Moet Hennessy - Louis Vuitton (France, Textiles, Apparel & Luxury Goods) | 2.9 | 3.2 |
Bayerische Motoren Werke AG (BMW) (Germany, Automobiles) | 2.1 | 1.3 |
Novo Nordisk A/S Series B (Denmark, Pharmaceuticals) | 2.1 | 1.8 |
HSBC Holdings PLC (United Kingdom, Commercial Banks) | 2.0 | 2.2 |
Volkswagen AG (Germany, Automobiles) | 2.0 | 1.4 |
| 11.1 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 25.6 | 28.4 |
Financials | 21.8 | 22.7 |
Materials | 11.0 | 9.4 |
Industrials | 10.6 | 9.0 |
Information Technology | 10.2 | 8.9 |
Top Five Countries as of April 30, 2011 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 17.6 | 17.4 |
Japan | 14.6 | 15.0 |
Germany | 13.7 | 9.9 |
France | 11.7 | 11.2 |
Switzerland | 6.1 | 6.1 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011 | As of October 31, 2010 |
| Stocks 99.9% | | | Stocks 99.6% | |
| Short-Term
Investments and
Net Other Assets 0.1% | | | Short-Term
Investments and
Net Other Assets 0.4% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.2% |
| Shares | | Value (000s) |
Australia - 1.8% |
AMP Ltd. | 359,117 | | $ 2,158 |
BHP Billiton Ltd. | 211,768 | | 10,726 |
Newcrest Mining Ltd. | 167,129 | | 7,596 |
TOTAL AUSTRALIA | | 20,480 |
Austria - 0.3% |
Zumtobel AG | 80,500 | | 2,921 |
Bailiwick of Jersey - 0.6% |
WPP PLC | 538,410 | | 7,053 |
Belgium - 1.3% |
Ageas (d) | 707,600 | | 2,148 |
Anheuser-Busch InBev SA NV (d) | 143,798 | | 9,177 |
Hamon & Compagnie International SA | 60,300 | | 2,586 |
KBC Groupe SA (d) | 35,219 | | 1,436 |
TOTAL BELGIUM | | 15,347 |
Bermuda - 1.7% |
Clear Media Ltd. (a) | 1,278,000 | | 782 |
GOME Electrical Appliances Holdings Ltd. (a) | 15,498,000 | | 5,568 |
Huabao International Holdings Ltd. | 1,892,000 | | 2,806 |
Signet Jewelers Ltd. (a) | 235,700 | | 10,312 |
TOTAL BERMUDA | | 19,468 |
Brazil - 0.1% |
Drogasil SA | 47,700 | | 343 |
Marisa Lojas SA | 36,200 | | 686 |
TOTAL BRAZIL | | 1,029 |
British Virgin Islands - 0.0% |
Mail.ru Group Ltd. GDR (a)(e) | 4,200 | | 129 |
Canada - 1.2% |
Barrick Gold Corp. | 52,100 | | 2,661 |
Suncor Energy, Inc. | 190,100 | | 8,763 |
Yamana Gold, Inc. | 205,600 | | 2,621 |
TOTAL CANADA | | 14,045 |
Cayman Islands - 4.8% |
Boshiwa International Holding Ltd. | 6,401,000 | | 4,154 |
Bosideng International Holdings Ltd. | 3,680,000 | | 1,166 |
China ZhengTong Auto Services Holdings Ltd. | 380,000 | | 430 |
E-Commerce China Dangdang, Inc. ADR | 38,000 | | 874 |
Hengdeli Holdings Ltd. | 19,806,000 | | 11,859 |
Common Stocks - continued |
| Shares | | Value (000s) |
Cayman Islands - continued |
Natural Beauty Bio-Technology Ltd. | 6,200,000 | | $ 1,533 |
Noah Holdings Ltd. ADR (d) | 69,800 | | 1,256 |
Peak Sport Products Co. Ltd. | 2,176,000 | | 1,659 |
Perfect World Co. Ltd. sponsored ADR Class B (a) | 256,300 | | 6,974 |
Shenguan Holdings Group Ltd. | 1,694,000 | | 2,251 |
Silver Base Group Holdings Ltd. | 9,916,000 | | 8,159 |
Tencent Holdings Ltd. | 439,500 | | 12,507 |
The United Laboratories International Holdings Ltd. | 1,216,000 | | 2,048 |
TOTAL CAYMAN ISLANDS | | 54,870 |
China - 0.6% |
Baidu.com, Inc. sponsored ADR (a) | 45,500 | | 6,758 |
Denmark - 2.9% |
Carlsberg A/S Series B | 39,200 | | 4,656 |
Danske Bank A/S (a) | 51,111 | | 1,228 |
Novo Nordisk A/S: | | | |
Series B | 19,863 | | 2,515 |
Series B sponsored ADR | 169,500 | | 21,593 |
William Demant Holding A/S (a) | 38,200 | | 3,561 |
TOTAL DENMARK | | 33,553 |
France - 11.7% |
Alstom SA | 282,414 | | 18,780 |
Atos Origin SA (a) | 46,996 | | 2,896 |
AXA SA (d) | 144,258 | | 3,237 |
AXA SA sponsored ADR (d) | 89,200 | | 2,000 |
BNP Paribas SA | 132,622 | | 10,496 |
Carrefour SA | 50,474 | | 2,393 |
Club Mediterranee SA (a) | 53,000 | | 1,235 |
Compagnie Generale de Geophysique SA (a) | 100,800 | | 3,551 |
Credit Agricole SA | 199,600 | | 3,323 |
Danone | 95,722 | | 7,012 |
Iliad Group SA | 18,000 | | 2,314 |
Ingenico SA | 88,993 | | 4,417 |
Ipsos SA | 48,000 | | 2,496 |
Lafarge SA (Bearer) | 44,500 | | 3,149 |
Laurent-Perrier Group | 21,000 | | 2,681 |
LVMH Moet Hennessy - Louis Vuitton | 185,724 | | 33,345 |
Pernod-Ricard SA | 11,900 | | 1,196 |
Safran SA | 97,600 | | 3,788 |
Sanofi-Aventis sponsored ADR (d) | 259,900 | | 10,271 |
Common Stocks - continued |
| Shares | | Value (000s) |
France - continued |
Schneider Electric SA | 47,833 | | $ 8,452 |
Societe Generale Series A | 89,724 | | 6,002 |
TOTAL FRANCE | | 133,034 |
Germany - 11.0% |
Allianz AG (d) | 46,552 | | 7,330 |
BASF AG (d) | 90,218 | | 9,274 |
Bayer AG (d) | 75,344 | | 6,623 |
Bayerische Motoren Werke AG (BMW) | 257,956 | | 24,327 |
Deutsche Bank AG | 53,600 | | 3,501 |
Deutsche Boerse AG | 107,169 | | 8,905 |
Deutsche Post AG | 169,323 | | 3,351 |
Fresenius Medical Care AG & Co. KGaA | 170,200 | | 13,376 |
Hugo Boss AG (d) | 46,900 | | 4,397 |
K&S AG | 23,400 | | 1,893 |
Kabel Deutschland Holding AG (a) | 83,300 | | 5,206 |
Linde AG | 24,094 | | 4,340 |
MAN SE | 48,826 | | 6,805 |
Munich Re Group | 13,555 | | 2,238 |
Puma AG | 11,423 | | 3,807 |
Rheinmetall AG | 21,700 | | 1,947 |
SAP AG | 122,957 | | 7,922 |
SAP AG sponsored ADR (d) | 91,600 | | 5,911 |
Siemens AG sponsored ADR | 16,400 | | 2,393 |
Tom Tailor Holding AG (a) | 57,500 | | 1,128 |
TOTAL GERMANY | | 124,674 |
Greece - 0.2% |
Folli Follie Group (a) | 137,123 | | 2,590 |
Hong Kong - 2.1% |
AIA Group Ltd. | 780,200 | | 2,627 |
China Unicom (Hong Kong) Ltd. sponsored ADR (d) | 136,900 | | 2,801 |
Emperor Watch & Jewellery Ltd. | 24,650,000 | | 3,555 |
Hang Seng Bank Ltd. | 133,300 | | 2,084 |
Henderson Land Development Co. Ltd. | 510,334 | | 3,493 |
Henderson Land Development Co. Ltd. warrants 6/1/11 (a) | 88,600 | | 2 |
Hong Kong Exchanges and Clearing Ltd. | 103,600 | | 2,364 |
Television Broadcasts Ltd. | 544,000 | | 3,187 |
Wharf Holdings Ltd. | 591,000 | | 4,322 |
TOTAL HONG KONG | | 24,435 |
Common Stocks - continued |
| Shares | | Value (000s) |
Ireland - 1.4% |
CRH PLC | 381,898 | | $ 9,480 |
Kingspan Group PLC (United Kingdom) | 671,700 | | 6,492 |
TOTAL IRELAND | | 15,972 |
Israel - 0.1% |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 34,000 | | 1,555 |
Italy - 3.8% |
Assicurazioni Generali SpA | 97,900 | | 2,346 |
Intesa Sanpaolo SpA | 1,870,295 | | 6,211 |
Saipem SpA | 329,875 | | 18,728 |
Sorin SpA (a) | 1,405,200 | | 4,038 |
Tod's SpA | 48,767 | | 6,620 |
UniCredit SpA | 1,621,394 | | 4,174 |
Unione di Banche Italiane SCpA | 174,755 | | 1,566 |
TOTAL ITALY | | 43,683 |
Japan - 14.6% |
Aozora Bank Ltd. | 1,005,000 | | 2,177 |
Canon, Inc. | 90,500 | | 4,261 |
Dai-ichi Mutual Life Insurance Co. | 1,169 | | 1,931 |
Denso Corp. | 53,900 | | 1,804 |
eAccess Ltd. (d) | 2,580 | | 1,218 |
Fanuc Ltd. | 35,100 | | 5,875 |
Fuji Media Holdings, Inc. | 1,029 | | 1,375 |
Japan Retail Fund Investment Corp. | 1,514 | | 2,447 |
Japan Tobacco, Inc. | 421 | | 1,636 |
JFE Holdings, Inc. | 72,700 | | 1,990 |
JSR Corp. | 62,700 | | 1,319 |
Keyence Corp. | 15,900 | | 4,201 |
Mazda Motor Corp. | 2,788,000 | | 6,401 |
Mitsubishi Corp. | 242,100 | | 6,567 |
Mitsubishi Electric Corp. | 575,000 | | 6,401 |
Mitsubishi Estate Co. Ltd. | 125,000 | | 2,187 |
Mitsubishi UFJ Financial Group, Inc. | 1,618,300 | | 7,766 |
Mitsubishi UFJ Financial Group, Inc. sponsored ADR | 371,800 | | 1,773 |
Mitsui & Co. Ltd. | 399,700 | | 7,112 |
Mizuho Financial Group, Inc. | 1,276,800 | | 2,023 |
MS&AD Insurance Group Holdings, Inc. | 97,800 | | 2,290 |
Murata Manufacturing Co. Ltd. | 44,800 | | 3,235 |
Nintendo Co. Ltd. | 6,400 | | 1,514 |
NKSJ Holdings, Inc. (a) | 276,000 | | 1,779 |
Nomura Holdings, Inc. | 301,900 | | 1,542 |
Common Stocks - continued |
| Shares | | Value (000s) |
Japan - continued |
NSK Ltd. | 405,000 | | $ 3,594 |
ORIX Corp. | 66,930 | | 6,575 |
Rakuten, Inc. | 6,883 | | 6,390 |
Shin-Etsu Chemical Co., Ltd. | 68,000 | | 3,537 |
SMC Corp. | 33,800 | | 6,174 |
SOFTBANK CORP. | 377,600 | | 15,932 |
Sony Corp. | 37,500 | | 1,059 |
Start Today Co. Ltd. | 200,200 | | 3,500 |
Sumitomo Corp. | 335,300 | | 4,625 |
Sumitomo Mitsui Financial Group, Inc. | 200,000 | | 6,212 |
T&D Holdings, Inc. | 60,150 | | 1,485 |
Tokio Marine Holdings, Inc. | 101,400 | | 2,836 |
Tokyo Electron Ltd. | 82,800 | | 4,793 |
Toshiba Corp. | 861,000 | | 4,584 |
Toyota Motor Corp. | 232,000 | | 9,254 |
Toyota Motor Corp. sponsored ADR (d) | 22,800 | | 1,817 |
Yahoo! Japan Corp. | 6,187 | | 2,276 |
TOTAL JAPAN | | 165,467 |
Korea (South) - 0.4% |
Samsung Electronics Co. Ltd. | 4,797 | | 4,009 |
Luxembourg - 0.3% |
ArcelorMittal SA Class A unit (d) | 81,400 | | 3,017 |
Netherlands - 1.8% |
AEGON NV (a) | 212,400 | | 1,688 |
ASML Holding NV | 54,400 | | 2,272 |
Fugro NV (Certificaten Van Aandelen) unit | 20,500 | | 1,880 |
ING Groep NV: | | | |
(Certificaten Van Aandelen) (a) | 398,910 | | 5,256 |
sponsored ADR (a) | 79,100 | | 1,043 |
Koninklijke Philips Electronics NV | 183,406 | | 5,432 |
Koninklijke Philips Electronics NV unit | 81,700 | | 2,409 |
TOTAL NETHERLANDS | | 19,980 |
Norway - 1.3% |
Aker Solutions ASA | 294,900 | | 7,116 |
DnB NOR ASA (d) | 222,600 | | 3,619 |
StatoilHydro ASA | 31,000 | | 908 |
StatoilHydro ASA sponsored ADR | 96,600 | | 2,831 |
TOTAL NORWAY | | 14,474 |
Common Stocks - continued |
| Shares | | Value (000s) |
Poland - 0.3% |
Eurocash SA | 271,900 | | $ 3,329 |
Russia - 0.3% |
Uralkali JSC GDR (Reg. S) | 69,400 | | 2,913 |
Singapore - 0.2% |
United Overseas Bank Ltd. | 122,234 | | 1,959 |
South Africa - 0.2% |
Impala Platinum Holdings Ltd. | 58,800 | | 1,835 |
Spain - 3.1% |
Antena 3 Television SA (d) | 181,300 | | 1,681 |
Banco Bilbao Vizcaya Argentaria SA | 429,083 | | 5,497 |
Banco Santander SA (d) | 839,631 | | 10,723 |
Banco Santander SA sponsored ADR | 197,500 | | 2,449 |
EDP Renovaveis SA (a) | 451,605 | | 3,478 |
NH Hoteles SA (a)(d) | 680,600 | | 5,741 |
Telefonica SA | 96,796 | | 2,601 |
Telefonica SA sponsored ADR | 94,200 | | 2,540 |
TOTAL SPAIN | | 34,710 |
Sweden - 1.2% |
Elekta AB (B Shares) | 265,300 | | 12,090 |
Swedbank AB (A Shares) | 96,212 | | 1,824 |
TOTAL SWEDEN | | 13,914 |
Switzerland - 6.1% |
Compagnie Financiere Richemont SA Series A | 281,763 | | 18,206 |
Credit Suisse Group | 50,181 | | 2,284 |
Credit Suisse Group sponsored ADR | 62,600 | | 2,848 |
GAM Holding Ltd. | 140,277 | | 2,765 |
Julius Baer Group Ltd. | 77,430 | | 3,618 |
Kuehne & Nagel International AG | 21,350 | | 3,410 |
Swiss Reinsurance Co. | 39,700 | | 2,366 |
The Swatch Group AG (Bearer) | 44,090 | | 21,684 |
Transocean Ltd. (a) | 31,500 | | 2,292 |
UBS AG (a) | 195,078 | | 3,903 |
UBS AG (NY Shares) (a) | 171,677 | | 3,434 |
Zurich Financial Services AG | 9,636 | | 2,707 |
TOTAL SWITZERLAND | | 69,517 |
Taiwan - 2.1% |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 394,424 | | 1,492 |
Common Stocks - continued |
| Shares | | Value (000s) |
Taiwan - continued |
HTC Corp. | 467,400 | | $ 21,182 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 130,385 | | 1,760 |
TOTAL TAIWAN | | 24,434 |
Turkey - 0.3% |
Boyner Buyuk Magazacilik AS (a) | 1,276,000 | | 3,540 |
United Kingdom - 17.6% |
Anglo American PLC: | | | |
ADR | 109,346 | | 2,851 |
(United Kingdom) | 177,859 | | 9,271 |
ARM Holdings PLC | 135,900 | | 1,409 |
Aviva PLC | 334,000 | | 2,500 |
Barclays PLC | 1,334,884 | | 6,346 |
Barclays PLC Sponsored ADR (d) | 270,500 | | 5,153 |
BG Group PLC | 548,018 | | 14,038 |
BHP Billiton PLC | 414,747 | | 17,536 |
BP PLC sponsored ADR | 185,100 | | 8,541 |
British Sky Broadcasting Group PLC | 220,100 | | 3,096 |
Burberry Group PLC | 252,600 | | 5,464 |
Dunelm Group PLC | 310,300 | | 2,366 |
Hays PLC | 1,126,800 | | 2,234 |
HSBC Holdings PLC: | | | |
(United Kingdom) | 141,944 | | 1,548 |
sponsored ADR (d) | 402,433 | | 21,921 |
InterContinental Hotel Group PLC | 293,195 | | 6,437 |
International Personal Finance PLC | 449,100 | | 2,757 |
Intertek Group PLC | 111,700 | | 3,965 |
Johnson Matthey PLC | 140,754 | | 4,709 |
Legal & General Group PLC | 813,369 | | 1,668 |
Lloyds Banking Group PLC (a) | 4,209,699 | | 4,180 |
Lloyds Banking Group PLC sponsored ADR (a)(d) | 381,800 | | 1,508 |
M&C Saatchi | 887,505 | | 2,068 |
Man Group PLC | 825,945 | | 3,445 |
Ocado Group PLC (a) | 431,700 | | 1,633 |
Prudential PLC | 363,825 | | 4,707 |
Rio Tinto PLC | 125,232 | | 9,138 |
Rio Tinto PLC sponsored ADR | 95,900 | | 7,021 |
Rolls-Royce Group PLC | 162,800 | | 1,745 |
Rolls-Royce Group PLC (C shares) | 15,628,800 | | 26 |
Royal Bank of Scotland Group PLC (a) | 1,162,200 | | 810 |
Royal Dutch Shell PLC: | | | |
Class A (United Kingdom) | 92,200 | | 3,577 |
Common Stocks - continued |
| Shares | | Value (000s) |
United Kingdom - continued |
Royal Dutch Shell PLC: - continued | | | |
Class B | 245,446 | | $ 9,549 |
Schroders PLC | 120,900 | | 3,833 |
Standard Chartered PLC (United Kingdom) | 131,807 | | 3,653 |
Sthree PLC | 190,600 | | 1,394 |
Vodafone Group PLC | 2,742,369 | | 7,928 |
Vodafone Group PLC sponsored ADR | 143,200 | | 4,170 |
Xstrata PLC | 237,400 | | 6,034 |
TOTAL UNITED KINGDOM | | 200,229 |
United States of America - 1.8% |
Apple, Inc. (a) | 16,200 | | 5,641 |
Deckers Outdoor Corp. (a) | 114,200 | | 9,691 |
Google, Inc. Class A (a) | 8,600 | | 4,679 |
TOTAL UNITED STATES OF AMERICA | | 20,011 |
TOTAL COMMON STOCKS (Cost $863,905) | 1,104,934 |
Nonconvertible Preferred Stocks - 2.7% |
| | | |
Germany - 2.7% |
Hugo Boss AG (non-vtg.) | 80,600 | | 7,999 |
Volkswagen AG (d) | 116,300 | | 22,911 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $16,590) | 30,910 |
Money Market Funds - 10.7% |
| | | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c)
(Cost $121,397) | 121,396,754 | | 121,397 |
TOTAL INVESTMENT PORTFOLIO - 110.6% (Cost $1,001,892) | | 1,257,241 |
NET OTHER ASSETS (LIABILITIES) - (10.6)% | | (120,290) |
NET ASSETS - 100% | $ 1,136,951 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $129,000 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 | $ 6 |
Fidelity Securities Lending Cash Central Fund | 228 |
Total | $ 234 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
United Kingdom | $ 200,229 | $ 129,550 | $ 70,679 | $ - |
Japan | 165,467 | 3,590 | 161,877 | - |
Germany | 155,584 | 155,584 | - | - |
France | 133,034 | 129,483 | 3,551 | - |
Switzerland | 69,517 | 63,330 | 6,187 | - |
Cayman Islands | 54,870 | 54,870 | - | - |
Italy | 43,683 | 43,683 | - | - |
Spain | 34,710 | 26,612 | 8,098 | - |
Denmark | 33,553 | 31,038 | 2,515 | - |
Other | 245,197 | 195,477 | 49,720 | - |
Money Market Funds | 121,397 | 121,397 | - | - |
Total Investments in Securities: | $ 1,257,241 | $ 954,614 | $ 302,627 | $ - |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $241,539,000 of which $14,313,000 and $227,226,000 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
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, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $116,829) - See accompanying schedule: Unaffiliated issuers (cost $880,495) | $ 1,135,844 | |
Fidelity Central Funds (cost $121,397) | 121,397 | |
Total Investments (cost $1,001,892) | | $ 1,257,241 |
Foreign currency held at value (cost $191) | | 191 |
Receivable for investments sold | | 3,252 |
Receivable for fund shares sold | | 301 |
Dividends receivable | | 4,871 |
Distributions receivable from Fidelity Central Funds | | 116 |
Prepaid expenses | | 1 |
Other receivables | | 152 |
Total assets | | 1,266,125 |
| | |
Liabilities | | |
Payable to custodian bank | $ 2,192 | |
Payable for investments purchased | 1,750 | |
Payable for fund shares redeemed | 2,592 | |
Accrued management fee | 712 | |
Distribution and service plan fees payable | 201 | |
Other affiliated payables | 248 | |
Other payables and accrued expenses | 82 | |
Collateral on securities loaned, at value | 121,397 | |
Total liabilities | | 129,174 |
| | |
Net Assets | | $ 1,136,951 |
Net Assets consist of: | | |
Paid in capital | | $ 1,065,667 |
Undistributed net investment income | | 2,243 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (186,460) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 255,501 |
Net Assets | | $ 1,136,951 |
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, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($79,654 ÷ 3,978 shares) | | $ 20.02 |
| | |
Maximum offering price per share (100/94.25 of $20.02) | | $ 21.24 |
Class T:
Net Asset Value and redemption price per share ($400,075 ÷ 19,509 shares) | | $ 20.51 |
| | |
Maximum offering price per share (100/96.50 of $20.51) | | $ 21.25 |
Class B:
Net Asset Value and offering price per share ($6,098 ÷ 314 shares)A | | $ 19.42 |
| | |
Class C:
Net Asset Value and offering price per share ($24,624 ÷ 1,252 shares)A | | $ 19.67 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($626,500 ÷ 30,719 shares) | | $ 20.39 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 9,543 |
Income from Fidelity Central Funds | | 234 |
Income before foreign taxes withheld | | 9,777 |
Less foreign taxes withheld | | (633) |
Total income | | 9,144 |
| | |
Expenses | | |
Management fee
Basic fee | $ 4,018 | |
Performance adjustment | 148 | |
Transfer agent fees | 1,242 | |
Distribution and service plan fees | 1,188 | |
Accounting and security lending fees | 265 | |
Custodian fees and expenses | 108 | |
Independent trustees' compensation | 3 | |
Registration fees | 50 | |
Audit | 45 | |
Legal | 2 | |
Interest | 1 | |
Miscellaneous | 6 | |
Total expenses before reductions | 7,076 | |
Expense reductions | (168) | 6,908 |
Net investment income (loss) | | 2,236 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 73,789 | |
Foreign currency transactions | (25) | |
Total net realized gain (loss) | | 73,764 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 77,294 | |
Assets and liabilities in foreign currencies | 45 | |
Total change in net unrealized appreciation (depreciation) | | 77,339 |
Net gain (loss) | | 151,103 |
Net increase (decrease) in net assets resulting from operations | | $ 153,339 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 2,236 | $ 14,198 |
Net realized gain (loss) | 73,764 | 73,737 |
Change in net unrealized appreciation (depreciation) | 77,339 | 72,077 |
Net increase (decrease) in net assets resulting
from operations | 153,339 | 160,012 |
Distributions to shareholders from net investment income | (12,982) | (17,905) |
Distributions to shareholders from net realized gain | (2,756) | (2,268) |
Total distributions | (15,738) | (20,173) |
Share transactions - net increase (decrease) | (148,277) | (188,997) |
Redemption fees | 9 | 22 |
Total increase (decrease) in net assets | (10,667) | (49,136) |
| | |
Net Assets | | |
Beginning of period | 1,147,618 | 1,196,754 |
End of period (including undistributed net investment income of $2,243 and undistributed net investment income of $12,989, respectively) | $ 1,136,951 | $ 1,147,618 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 17.77 | $ 15.68 | $ 13.56 | $ 26.85 | $ 21.67 | $ 18.36 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .17 | .24 | .38 | .31 | .27 |
Net realized and unrealized gain (loss) | 2.49 | 2.16 | 2.12 | (11.56) | 6.16 | 3.53 |
Total from investment operations | 2.51 | 2.33 | 2.36 | (11.18) | 6.47 | 3.80 |
Distributions from net investment income | (.21) | (.21) | (.24) | (.33) | (.23) | (.19) |
Distributions from net realized gain | (.05) | (.03) | - | (1.78) | (1.06) | (.30) |
Total distributions | (.26) | (.24) | (.24) | (2.11) | (1.29) | (.49) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 20.02 | $ 17.77 | $ 15.68 | $ 13.56 | $ 26.85 | $ 21.67 |
Total Return B,C,D | 14.25% | 14.99% | 17.97% | (45.08)% | 31.44% | 21.12% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.37% A | 1.36% | 1.36% | 1.35% | 1.17% | 1.24% |
Expenses net of fee waivers, if any | 1.36% A | 1.36% | 1.36% | 1.35% | 1.17% | 1.24% |
Expenses net of all reductions | 1.34% A | 1.33% | 1.33% | 1.32% | 1.13% | 1.17% |
Net investment income (loss) | .27% A | 1.04% | 1.79% | 1.83% | 1.34% | 1.31% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 80 | $ 70 | $ 72 | $ 73 | $ 147 | $ 113 |
Portfolio turnover rate G | 37% A | 53% | 83% | 79% | 66% | 65% |
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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.18 | $ 16.03 | $ 13.84 | $ 27.35 | $ 22.05 | $ 18.64 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | .14 | .22 | .36 | .28 | .24 |
Net realized and unrealized gain (loss) | 2.54 | 2.23 | 2.17 | (11.82) | 6.27 | 3.59 |
Total from investment operations | 2.55 | 2.37 | 2.39 | (11.46) | 6.55 | 3.83 |
Distributions from net investment income | (.17) | (.19) | (.20) | (.27) | (.19) | (.12) |
Distributions from net realized gain | (.05) | (.03) | - | (1.78) | (1.06) | (.30) |
Total distributions | (.22) | (.22) | (.20) | (2.05) | (1.25) | (.42) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 20.51 | $ 18.18 | $ 16.03 | $ 13.84 | $ 27.35 | $ 22.05 |
Total Return B,C,D | 14.15% | 14.88% | 17.70% | (45.18)% | 31.24% | 20.92% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.54% A | 1.53% | 1.57% | 1.51% | 1.33% | 1.39% |
Expenses net of fee waivers, if any | 1.53% A | 1.53% | 1.57% | 1.51% | 1.33% | 1.39% |
Expenses net of all reductions | 1.51% A | 1.50% | 1.54% | 1.48% | 1.30% | 1.33% |
Net investment income (loss) | .10% A | .86% | 1.58% | 1.67% | 1.17% | 1.15% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 400 | $ 371 | $ 367 | $ 345 | $ 710 | $ 602 |
Portfolio turnover rate G | 37% A | 53% | 83% | 79% | 66% | 65% |
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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 17.18 | $ 15.16 | $ 13.02 | $ 25.79 | $ 20.81 | $ 17.63 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | .04 | .13 | .22 | .12 | .10 |
Net realized and unrealized gain (loss) | 2.40 | 2.10 | 2.08 | (11.14) | 5.94 | 3.40 |
Total from investment operations | 2.36 | 2.14 | 2.21 | (10.92) | 6.06 | 3.50 |
Distributions from net investment income | (.08) | (.09) | (.07) | (.07) | (.02) | (.02) |
Distributions from net realized gain | (.05) | (.03) | - | (1.78) | (1.06) | (.30) |
Total distributions | (.12) J | (.12) | (.07) | (1.85) | (1.08) | (.32) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 19.42 | $ 17.18 | $ 15.16 | $ 13.02 | $ 25.79 | $ 20.81 |
Total Return B,C,D | 13.84% | 14.15% | 17.09% | (45.50)% | 30.45% | 20.12% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.12% A | 2.11% | 2.12% | 2.10% | 1.94% | 2.05% |
Expenses net of fee waivers, if any | 2.11% A | 2.11% | 2.12% | 2.10% | 1.94% | 2.05% |
Expenses net of all reductions | 2.09% A | 2.09% | 2.08% | 2.08% | 1.91% | 1.99% |
Net investment income (loss) | (.48)% A | .28% | 1.04% | 1.07% | .56% | .49% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 6 | $ 7 | $ 8 | $ 10 | $ 27 | $ 37 |
Portfolio turnover rate G | 37% A | 53% | 83% | 79% | 66% | 65% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $.12 per share is comprised of distributions from net investment income of $.079 and distributions from net realized gain of $.045 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 17.39 | $ 15.36 | $ 13.22 | $ 26.22 | $ 21.19 | $ 17.95 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | .05 | .14 | .22 | .14 | .11 |
Net realized and unrealized gain (loss) | 2.44 | 2.12 | 2.09 | (11.31) | 6.02 | 3.47 |
Total from investment operations | 2.40 | 2.17 | 2.23 | (11.09) | 6.16 | 3.58 |
Distributions from net investment income | (.07) | (.11) | (.09) | (.13) | (.07) | (.04) |
Distributions from net realized gain | (.05) | (.03) | - | (1.78) | (1.06) | (.30) |
Total distributions | (.12) | (.14) | (.09) | (1.91) | (1.13) | (.34) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 19.67 | $ 17.39 | $ 15.36 | $ 13.22 | $ 26.22 | $ 21.19 |
Total Return B,C,D | 13.84% | 14.17% | 17.06% | (45.50)% | 30.48% | 20.22% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.12% A | 2.10% | 2.11% | 2.09% | 1.91% | 1.98% |
Expenses net of fee waivers, if any | 2.11% A | 2.10% | 2.11% | 2.09% | 1.91% | 1.98% |
Expenses net of all reductions | 2.09% A | 2.08% | 2.08% | 2.07% | 1.87% | 1.92% |
Net investment income (loss) | (.48)% A | .29% | 1.05% | 1.08% | .60% | .56% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 25 | $ 22 | $ 23 | $ 22 | $ 46 | $ 41 |
Portfolio turnover rate G | 37% A | 53% | 83% | 79% | 66% | 65% |
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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.10 | $ 15.95 | $ 13.83 | $ 27.35 | $ 22.06 | $ 18.64 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .06 | .22 | .29 | .45 | .40 | .35 |
Net realized and unrealized gain (loss) | 2.52 | 2.23 | 2.14 | (11.78) | 6.26 | 3.58 |
Total from investment operations | 2.58 | 2.45 | 2.43 | (11.33) | 6.66 | 3.93 |
Distributions from net investment income | (.24) | (.27) | (.31) | (.41) | (.31) | (.21) |
Distributions from net realized gain | (.05) | (.03) | - | (1.78) | (1.06) | (.30) |
Total distributions | (.29) | (.30) | (.31) | (2.19) | (1.37) | (.51) |
Redemption fees added to paid in capital D,H | - | - | - | - | - | - |
Net asset value, end of period | $ 20.39 | $ 18.10 | $ 15.95 | $ 13.83 | $ 27.35 | $ 22.06 |
Total Return B,C | 14.41% | 15.49% | 18.32% | (44.92)% | 31.88% | 21.55% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | 1.02% A | 1.01% | 1.06% | 1.01% | .84% | .87% |
Expenses net of fee waivers, if any | 1.01% A | 1.01% | 1.06% | 1.01% | .84% | .87% |
Expenses net of all reductions | .99% A | .98% | 1.02% | .98% | .81% | .81% |
Net investment income (loss) | .62% A | 1.39% | 2.10% | 2.17% | 1.66% | 1.67% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 627 | $ 678 | $ 727 | $ 551 | $ 609 | $ 354 |
Portfolio turnover rate F | 37% A | 53% | 83% | 79% | 66% | 65% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2011 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Advisor Overseas Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, 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 | $ 298,900 |
Gross unrealized depreciation | (58,341) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 240,559 |
| |
Tax cost | $ 1,016,682 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update changes the wording used to describe the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. The update is effective during interim and annual periods beginning after December 15, 2011. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $206,827 and $365,019, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the investment performance of the asset-weighted return of all classes as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .73% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 91 | $ 2 |
Class T | .25% | .25% | 950 | 19 |
Class B | .75% | .25% | 32 | 25 |
Class C | .75% | .25% | 115 | 7 |
| | | $ 1,188 | $ 53 |
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% to 1% for Class B, 1% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
6. 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 | $ 6 |
Class T | 3 |
Class B* | 4 |
Class C* | -** |
| $ 13 |
* 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.
** Amount represents less than $500.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 110 | .30 |
Class T | 420 | .22 |
Class B | 10 | .30 |
Class C | 35 | .30 |
Institutional Class | 667 | .20 |
| $ 1,242 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $1 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average
Interest Rate | Interest
Expense |
Borrower | $ 7,560 | .45% | $ 1 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to
Semiannual Report
8. Security Lending - continued
the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and 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 $228. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of its management fee. For the period, the amount of this reimbursement was $77.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $91 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30, 2011 | Year ended
October 31, 2010 |
From net investment income | | |
Class A | $ 829 | $ 950 |
Class T | 3,501 | 4,334 |
Class B | 30 | 45 |
Class C | 89 | 160 |
Institutional Class | 8,533 | 12,416 |
Total | $ 12,982 | $ 17,905 |
From net realized gain | | |
Class A | $ 178 | $ 134 |
Class T | 911 | 684 |
Class B | 17 | 15 |
Class C | 57 | 44 |
Institutional Class | 1,593 | 1,391 |
Total | $ 2,756 | $ 2,268 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30, 2011 | Year ended
October 31, 2010 | Six months ended
April 30, 2011 | Year ended
October 31, 2010 |
Class A | | | | |
Shares sold | 406 | 475 | $ 7,539 | $ 7,655 |
Reinvestment of distributions | 51 | 61 | 919 | 1,012 |
Shares redeemed | (420) | (1,167) | (7,754) | (18,467) |
Net increase (decrease) | 37 | (631) | $ 704 | $ (9,800) |
Class T | | | | |
Shares sold | 1,846 | 4,009 | $ 34,978 | $ 65,721 |
Reinvestment of distributions | 232 | 288 | 4,288 | 4,889 |
Shares redeemed | (2,969) | (6,821) | (56,201) | (111,516) |
Net increase (decrease) | (891) | (2,524) | $ (16,935) | $ (40,906) |
Class B | | | | |
Shares sold | 8 | 48 | $ 145 | $ 740 |
Reinvestment of distributions | 2 | 3 | 41 | 54 |
Shares redeemed | (93) | (174) | (1,670) | (2,691) |
Net increase (decrease) | (83) | (123) | $ (1,484) | $ (1,897) |
Class C | | | | |
Shares sold | 99 | 120 | $ 1,801 | $ 1,913 |
Reinvestment of distributions | 7 | 11 | 125 | 176 |
Shares redeemed | (141) | (337) | (2,549) | (5,265) |
Net increase (decrease) | (35) | (206) | $ (623) | $ (3,176) |
Institutional Class | | | | |
Shares sold | 1,911 | 12,645 | $ 35,514 | $ 202,633 |
Reinvestment of distributions | 544 | 818 | 9,988 | 13,738 |
Shares redeemed | (9,181) | (21,576) | (175,441) | (349,589) |
Net increase (decrease) | (6,726) | (8,113) | $ (129,939) | $ (133,218) |
Semiannual Report
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, Strategic Advisers International II Fund was the owner of record of approximately 11% of the total outstanding shares of the Fund.
The Fidelity Advisor Freedom Funds were the owners of record, in the aggregate, of approximately 24% 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
FIL Investments (Japan) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investment Advisors (UK) Limited
FIL Investment Advisors
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Northern Trust Company
Chicago, IL
OS-USAN-0611
1.784903.108
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Overseas
Fund - Institutional Class
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense
Ratio | Beginning
Account Value
November 1, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010 to
April 30, 2011 |
Class A | 1.36% | | | |
Actual | | $ 1,000.00 | $ 1,142.50 | $ 7.22 |
HypotheticalA | | $ 1,000.00 | $ 1,018.05 | $ 6.81 |
Class T | 1.53% | | | |
Actual | | $ 1,000.00 | $ 1,141.50 | $ 8.12 |
HypotheticalA | | $ 1,000.00 | $ 1,017.21 | $ 7.65 |
Class B | 2.11% | | | |
Actual | | $ 1,000.00 | $ 1,138.40 | $ 11.19 |
HypotheticalA | | $ 1,000.00 | $ 1,014.33 | $ 10.54 |
Class C | 2.11% | | | |
Actual | | $ 1,000.00 | $ 1,138.40 | $ 11.19 |
HypotheticalA | | $ 1,000.00 | $ 1,014.33 | $ 10.54 |
Institutional Class | 1.01% | | | |
Actual | | $ 1,000.00 | $ 1,144.10 | $ 5.37 |
HypotheticalA | | $ 1,000.00 | $ 1,019.79 | $ 5.06 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
LVMH Moet Hennessy - Louis Vuitton (France, Textiles, Apparel & Luxury Goods) | 2.9 | 3.2 |
Bayerische Motoren Werke AG (BMW) (Germany, Automobiles) | 2.1 | 1.3 |
Novo Nordisk A/S Series B (Denmark, Pharmaceuticals) | 2.1 | 1.8 |
HSBC Holdings PLC (United Kingdom, Commercial Banks) | 2.0 | 2.2 |
Volkswagen AG (Germany, Automobiles) | 2.0 | 1.4 |
| 11.1 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 25.6 | 28.4 |
Financials | 21.8 | 22.7 |
Materials | 11.0 | 9.4 |
Industrials | 10.6 | 9.0 |
Information Technology | 10.2 | 8.9 |
Top Five Countries as of April 30, 2011 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 17.6 | 17.4 |
Japan | 14.6 | 15.0 |
Germany | 13.7 | 9.9 |
France | 11.7 | 11.2 |
Switzerland | 6.1 | 6.1 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011 | As of October 31, 2010 |
| Stocks 99.9% | | | Stocks 99.6% | |
| Short-Term
Investments and
Net Other Assets 0.1% | | | Short-Term
Investments and
Net Other Assets 0.4% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.2% |
| Shares | | Value (000s) |
Australia - 1.8% |
AMP Ltd. | 359,117 | | $ 2,158 |
BHP Billiton Ltd. | 211,768 | | 10,726 |
Newcrest Mining Ltd. | 167,129 | | 7,596 |
TOTAL AUSTRALIA | | 20,480 |
Austria - 0.3% |
Zumtobel AG | 80,500 | | 2,921 |
Bailiwick of Jersey - 0.6% |
WPP PLC | 538,410 | | 7,053 |
Belgium - 1.3% |
Ageas (d) | 707,600 | | 2,148 |
Anheuser-Busch InBev SA NV (d) | 143,798 | | 9,177 |
Hamon & Compagnie International SA | 60,300 | | 2,586 |
KBC Groupe SA (d) | 35,219 | | 1,436 |
TOTAL BELGIUM | | 15,347 |
Bermuda - 1.7% |
Clear Media Ltd. (a) | 1,278,000 | | 782 |
GOME Electrical Appliances Holdings Ltd. (a) | 15,498,000 | | 5,568 |
Huabao International Holdings Ltd. | 1,892,000 | | 2,806 |
Signet Jewelers Ltd. (a) | 235,700 | | 10,312 |
TOTAL BERMUDA | | 19,468 |
Brazil - 0.1% |
Drogasil SA | 47,700 | | 343 |
Marisa Lojas SA | 36,200 | | 686 |
TOTAL BRAZIL | | 1,029 |
British Virgin Islands - 0.0% |
Mail.ru Group Ltd. GDR (a)(e) | 4,200 | | 129 |
Canada - 1.2% |
Barrick Gold Corp. | 52,100 | | 2,661 |
Suncor Energy, Inc. | 190,100 | | 8,763 |
Yamana Gold, Inc. | 205,600 | | 2,621 |
TOTAL CANADA | | 14,045 |
Cayman Islands - 4.8% |
Boshiwa International Holding Ltd. | 6,401,000 | | 4,154 |
Bosideng International Holdings Ltd. | 3,680,000 | | 1,166 |
China ZhengTong Auto Services Holdings Ltd. | 380,000 | | 430 |
E-Commerce China Dangdang, Inc. ADR | 38,000 | | 874 |
Hengdeli Holdings Ltd. | 19,806,000 | | 11,859 |
Common Stocks - continued |
| Shares | | Value (000s) |
Cayman Islands - continued |
Natural Beauty Bio-Technology Ltd. | 6,200,000 | | $ 1,533 |
Noah Holdings Ltd. ADR (d) | 69,800 | | 1,256 |
Peak Sport Products Co. Ltd. | 2,176,000 | | 1,659 |
Perfect World Co. Ltd. sponsored ADR Class B (a) | 256,300 | | 6,974 |
Shenguan Holdings Group Ltd. | 1,694,000 | | 2,251 |
Silver Base Group Holdings Ltd. | 9,916,000 | | 8,159 |
Tencent Holdings Ltd. | 439,500 | | 12,507 |
The United Laboratories International Holdings Ltd. | 1,216,000 | | 2,048 |
TOTAL CAYMAN ISLANDS | | 54,870 |
China - 0.6% |
Baidu.com, Inc. sponsored ADR (a) | 45,500 | | 6,758 |
Denmark - 2.9% |
Carlsberg A/S Series B | 39,200 | | 4,656 |
Danske Bank A/S (a) | 51,111 | | 1,228 |
Novo Nordisk A/S: | | | |
Series B | 19,863 | | 2,515 |
Series B sponsored ADR | 169,500 | | 21,593 |
William Demant Holding A/S (a) | 38,200 | | 3,561 |
TOTAL DENMARK | | 33,553 |
France - 11.7% |
Alstom SA | 282,414 | | 18,780 |
Atos Origin SA (a) | 46,996 | | 2,896 |
AXA SA (d) | 144,258 | | 3,237 |
AXA SA sponsored ADR (d) | 89,200 | | 2,000 |
BNP Paribas SA | 132,622 | | 10,496 |
Carrefour SA | 50,474 | | 2,393 |
Club Mediterranee SA (a) | 53,000 | | 1,235 |
Compagnie Generale de Geophysique SA (a) | 100,800 | | 3,551 |
Credit Agricole SA | 199,600 | | 3,323 |
Danone | 95,722 | | 7,012 |
Iliad Group SA | 18,000 | | 2,314 |
Ingenico SA | 88,993 | | 4,417 |
Ipsos SA | 48,000 | | 2,496 |
Lafarge SA (Bearer) | 44,500 | | 3,149 |
Laurent-Perrier Group | 21,000 | | 2,681 |
LVMH Moet Hennessy - Louis Vuitton | 185,724 | | 33,345 |
Pernod-Ricard SA | 11,900 | | 1,196 |
Safran SA | 97,600 | | 3,788 |
Sanofi-Aventis sponsored ADR (d) | 259,900 | | 10,271 |
Common Stocks - continued |
| Shares | | Value (000s) |
France - continued |
Schneider Electric SA | 47,833 | | $ 8,452 |
Societe Generale Series A | 89,724 | | 6,002 |
TOTAL FRANCE | | 133,034 |
Germany - 11.0% |
Allianz AG (d) | 46,552 | | 7,330 |
BASF AG (d) | 90,218 | | 9,274 |
Bayer AG (d) | 75,344 | | 6,623 |
Bayerische Motoren Werke AG (BMW) | 257,956 | | 24,327 |
Deutsche Bank AG | 53,600 | | 3,501 |
Deutsche Boerse AG | 107,169 | | 8,905 |
Deutsche Post AG | 169,323 | | 3,351 |
Fresenius Medical Care AG & Co. KGaA | 170,200 | | 13,376 |
Hugo Boss AG (d) | 46,900 | | 4,397 |
K&S AG | 23,400 | | 1,893 |
Kabel Deutschland Holding AG (a) | 83,300 | | 5,206 |
Linde AG | 24,094 | | 4,340 |
MAN SE | 48,826 | | 6,805 |
Munich Re Group | 13,555 | | 2,238 |
Puma AG | 11,423 | | 3,807 |
Rheinmetall AG | 21,700 | | 1,947 |
SAP AG | 122,957 | | 7,922 |
SAP AG sponsored ADR (d) | 91,600 | | 5,911 |
Siemens AG sponsored ADR | 16,400 | | 2,393 |
Tom Tailor Holding AG (a) | 57,500 | | 1,128 |
TOTAL GERMANY | | 124,674 |
Greece - 0.2% |
Folli Follie Group (a) | 137,123 | | 2,590 |
Hong Kong - 2.1% |
AIA Group Ltd. | 780,200 | | 2,627 |
China Unicom (Hong Kong) Ltd. sponsored ADR (d) | 136,900 | | 2,801 |
Emperor Watch & Jewellery Ltd. | 24,650,000 | | 3,555 |
Hang Seng Bank Ltd. | 133,300 | | 2,084 |
Henderson Land Development Co. Ltd. | 510,334 | | 3,493 |
Henderson Land Development Co. Ltd. warrants 6/1/11 (a) | 88,600 | | 2 |
Hong Kong Exchanges and Clearing Ltd. | 103,600 | | 2,364 |
Television Broadcasts Ltd. | 544,000 | | 3,187 |
Wharf Holdings Ltd. | 591,000 | | 4,322 |
TOTAL HONG KONG | | 24,435 |
Common Stocks - continued |
| Shares | | Value (000s) |
Ireland - 1.4% |
CRH PLC | 381,898 | | $ 9,480 |
Kingspan Group PLC (United Kingdom) | 671,700 | | 6,492 |
TOTAL IRELAND | | 15,972 |
Israel - 0.1% |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 34,000 | | 1,555 |
Italy - 3.8% |
Assicurazioni Generali SpA | 97,900 | | 2,346 |
Intesa Sanpaolo SpA | 1,870,295 | | 6,211 |
Saipem SpA | 329,875 | | 18,728 |
Sorin SpA (a) | 1,405,200 | | 4,038 |
Tod's SpA | 48,767 | | 6,620 |
UniCredit SpA | 1,621,394 | | 4,174 |
Unione di Banche Italiane SCpA | 174,755 | | 1,566 |
TOTAL ITALY | | 43,683 |
Japan - 14.6% |
Aozora Bank Ltd. | 1,005,000 | | 2,177 |
Canon, Inc. | 90,500 | | 4,261 |
Dai-ichi Mutual Life Insurance Co. | 1,169 | | 1,931 |
Denso Corp. | 53,900 | | 1,804 |
eAccess Ltd. (d) | 2,580 | | 1,218 |
Fanuc Ltd. | 35,100 | | 5,875 |
Fuji Media Holdings, Inc. | 1,029 | | 1,375 |
Japan Retail Fund Investment Corp. | 1,514 | | 2,447 |
Japan Tobacco, Inc. | 421 | | 1,636 |
JFE Holdings, Inc. | 72,700 | | 1,990 |
JSR Corp. | 62,700 | | 1,319 |
Keyence Corp. | 15,900 | | 4,201 |
Mazda Motor Corp. | 2,788,000 | | 6,401 |
Mitsubishi Corp. | 242,100 | | 6,567 |
Mitsubishi Electric Corp. | 575,000 | | 6,401 |
Mitsubishi Estate Co. Ltd. | 125,000 | | 2,187 |
Mitsubishi UFJ Financial Group, Inc. | 1,618,300 | | 7,766 |
Mitsubishi UFJ Financial Group, Inc. sponsored ADR | 371,800 | | 1,773 |
Mitsui & Co. Ltd. | 399,700 | | 7,112 |
Mizuho Financial Group, Inc. | 1,276,800 | | 2,023 |
MS&AD Insurance Group Holdings, Inc. | 97,800 | | 2,290 |
Murata Manufacturing Co. Ltd. | 44,800 | | 3,235 |
Nintendo Co. Ltd. | 6,400 | | 1,514 |
NKSJ Holdings, Inc. (a) | 276,000 | | 1,779 |
Nomura Holdings, Inc. | 301,900 | | 1,542 |
Common Stocks - continued |
| Shares | | Value (000s) |
Japan - continued |
NSK Ltd. | 405,000 | | $ 3,594 |
ORIX Corp. | 66,930 | | 6,575 |
Rakuten, Inc. | 6,883 | | 6,390 |
Shin-Etsu Chemical Co., Ltd. | 68,000 | | 3,537 |
SMC Corp. | 33,800 | | 6,174 |
SOFTBANK CORP. | 377,600 | | 15,932 |
Sony Corp. | 37,500 | | 1,059 |
Start Today Co. Ltd. | 200,200 | | 3,500 |
Sumitomo Corp. | 335,300 | | 4,625 |
Sumitomo Mitsui Financial Group, Inc. | 200,000 | | 6,212 |
T&D Holdings, Inc. | 60,150 | | 1,485 |
Tokio Marine Holdings, Inc. | 101,400 | | 2,836 |
Tokyo Electron Ltd. | 82,800 | | 4,793 |
Toshiba Corp. | 861,000 | | 4,584 |
Toyota Motor Corp. | 232,000 | | 9,254 |
Toyota Motor Corp. sponsored ADR (d) | 22,800 | | 1,817 |
Yahoo! Japan Corp. | 6,187 | | 2,276 |
TOTAL JAPAN | | 165,467 |
Korea (South) - 0.4% |
Samsung Electronics Co. Ltd. | 4,797 | | 4,009 |
Luxembourg - 0.3% |
ArcelorMittal SA Class A unit (d) | 81,400 | | 3,017 |
Netherlands - 1.8% |
AEGON NV (a) | 212,400 | | 1,688 |
ASML Holding NV | 54,400 | | 2,272 |
Fugro NV (Certificaten Van Aandelen) unit | 20,500 | | 1,880 |
ING Groep NV: | | | |
(Certificaten Van Aandelen) (a) | 398,910 | | 5,256 |
sponsored ADR (a) | 79,100 | | 1,043 |
Koninklijke Philips Electronics NV | 183,406 | | 5,432 |
Koninklijke Philips Electronics NV unit | 81,700 | | 2,409 |
TOTAL NETHERLANDS | | 19,980 |
Norway - 1.3% |
Aker Solutions ASA | 294,900 | | 7,116 |
DnB NOR ASA (d) | 222,600 | | 3,619 |
StatoilHydro ASA | 31,000 | | 908 |
StatoilHydro ASA sponsored ADR | 96,600 | | 2,831 |
TOTAL NORWAY | | 14,474 |
Common Stocks - continued |
| Shares | | Value (000s) |
Poland - 0.3% |
Eurocash SA | 271,900 | | $ 3,329 |
Russia - 0.3% |
Uralkali JSC GDR (Reg. S) | 69,400 | | 2,913 |
Singapore - 0.2% |
United Overseas Bank Ltd. | 122,234 | | 1,959 |
South Africa - 0.2% |
Impala Platinum Holdings Ltd. | 58,800 | | 1,835 |
Spain - 3.1% |
Antena 3 Television SA (d) | 181,300 | | 1,681 |
Banco Bilbao Vizcaya Argentaria SA | 429,083 | | 5,497 |
Banco Santander SA (d) | 839,631 | | 10,723 |
Banco Santander SA sponsored ADR | 197,500 | | 2,449 |
EDP Renovaveis SA (a) | 451,605 | | 3,478 |
NH Hoteles SA (a)(d) | 680,600 | | 5,741 |
Telefonica SA | 96,796 | | 2,601 |
Telefonica SA sponsored ADR | 94,200 | | 2,540 |
TOTAL SPAIN | | 34,710 |
Sweden - 1.2% |
Elekta AB (B Shares) | 265,300 | | 12,090 |
Swedbank AB (A Shares) | 96,212 | | 1,824 |
TOTAL SWEDEN | | 13,914 |
Switzerland - 6.1% |
Compagnie Financiere Richemont SA Series A | 281,763 | | 18,206 |
Credit Suisse Group | 50,181 | | 2,284 |
Credit Suisse Group sponsored ADR | 62,600 | | 2,848 |
GAM Holding Ltd. | 140,277 | | 2,765 |
Julius Baer Group Ltd. | 77,430 | | 3,618 |
Kuehne & Nagel International AG | 21,350 | | 3,410 |
Swiss Reinsurance Co. | 39,700 | | 2,366 |
The Swatch Group AG (Bearer) | 44,090 | | 21,684 |
Transocean Ltd. (a) | 31,500 | | 2,292 |
UBS AG (a) | 195,078 | | 3,903 |
UBS AG (NY Shares) (a) | 171,677 | | 3,434 |
Zurich Financial Services AG | 9,636 | | 2,707 |
TOTAL SWITZERLAND | | 69,517 |
Taiwan - 2.1% |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 394,424 | | 1,492 |
Common Stocks - continued |
| Shares | | Value (000s) |
Taiwan - continued |
HTC Corp. | 467,400 | | $ 21,182 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 130,385 | | 1,760 |
TOTAL TAIWAN | | 24,434 |
Turkey - 0.3% |
Boyner Buyuk Magazacilik AS (a) | 1,276,000 | | 3,540 |
United Kingdom - 17.6% |
Anglo American PLC: | | | |
ADR | 109,346 | | 2,851 |
(United Kingdom) | 177,859 | | 9,271 |
ARM Holdings PLC | 135,900 | | 1,409 |
Aviva PLC | 334,000 | | 2,500 |
Barclays PLC | 1,334,884 | | 6,346 |
Barclays PLC Sponsored ADR (d) | 270,500 | | 5,153 |
BG Group PLC | 548,018 | | 14,038 |
BHP Billiton PLC | 414,747 | | 17,536 |
BP PLC sponsored ADR | 185,100 | | 8,541 |
British Sky Broadcasting Group PLC | 220,100 | | 3,096 |
Burberry Group PLC | 252,600 | | 5,464 |
Dunelm Group PLC | 310,300 | | 2,366 |
Hays PLC | 1,126,800 | | 2,234 |
HSBC Holdings PLC: | | | |
(United Kingdom) | 141,944 | | 1,548 |
sponsored ADR (d) | 402,433 | | 21,921 |
InterContinental Hotel Group PLC | 293,195 | | 6,437 |
International Personal Finance PLC | 449,100 | | 2,757 |
Intertek Group PLC | 111,700 | | 3,965 |
Johnson Matthey PLC | 140,754 | | 4,709 |
Legal & General Group PLC | 813,369 | | 1,668 |
Lloyds Banking Group PLC (a) | 4,209,699 | | 4,180 |
Lloyds Banking Group PLC sponsored ADR (a)(d) | 381,800 | | 1,508 |
M&C Saatchi | 887,505 | | 2,068 |
Man Group PLC | 825,945 | | 3,445 |
Ocado Group PLC (a) | 431,700 | | 1,633 |
Prudential PLC | 363,825 | | 4,707 |
Rio Tinto PLC | 125,232 | | 9,138 |
Rio Tinto PLC sponsored ADR | 95,900 | | 7,021 |
Rolls-Royce Group PLC | 162,800 | | 1,745 |
Rolls-Royce Group PLC (C shares) | 15,628,800 | | 26 |
Royal Bank of Scotland Group PLC (a) | 1,162,200 | | 810 |
Royal Dutch Shell PLC: | | | |
Class A (United Kingdom) | 92,200 | | 3,577 |
Common Stocks - continued |
| Shares | | Value (000s) |
United Kingdom - continued |
Royal Dutch Shell PLC: - continued | | | |
Class B | 245,446 | | $ 9,549 |
Schroders PLC | 120,900 | | 3,833 |
Standard Chartered PLC (United Kingdom) | 131,807 | | 3,653 |
Sthree PLC | 190,600 | | 1,394 |
Vodafone Group PLC | 2,742,369 | | 7,928 |
Vodafone Group PLC sponsored ADR | 143,200 | | 4,170 |
Xstrata PLC | 237,400 | | 6,034 |
TOTAL UNITED KINGDOM | | 200,229 |
United States of America - 1.8% |
Apple, Inc. (a) | 16,200 | | 5,641 |
Deckers Outdoor Corp. (a) | 114,200 | | 9,691 |
Google, Inc. Class A (a) | 8,600 | | 4,679 |
TOTAL UNITED STATES OF AMERICA | | 20,011 |
TOTAL COMMON STOCKS (Cost $863,905) | 1,104,934 |
Nonconvertible Preferred Stocks - 2.7% |
| | | |
Germany - 2.7% |
Hugo Boss AG (non-vtg.) | 80,600 | | 7,999 |
Volkswagen AG (d) | 116,300 | | 22,911 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $16,590) | 30,910 |
Money Market Funds - 10.7% |
| | | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c)
(Cost $121,397) | 121,396,754 | | 121,397 |
TOTAL INVESTMENT PORTFOLIO - 110.6% (Cost $1,001,892) | | 1,257,241 |
NET OTHER ASSETS (LIABILITIES) - (10.6)% | | (120,290) |
NET ASSETS - 100% | $ 1,136,951 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $129,000 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 | $ 6 |
Fidelity Securities Lending Cash Central Fund | 228 |
Total | $ 234 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
United Kingdom | $ 200,229 | $ 129,550 | $ 70,679 | $ - |
Japan | 165,467 | 3,590 | 161,877 | - |
Germany | 155,584 | 155,584 | - | - |
France | 133,034 | 129,483 | 3,551 | - |
Switzerland | 69,517 | 63,330 | 6,187 | - |
Cayman Islands | 54,870 | 54,870 | - | - |
Italy | 43,683 | 43,683 | - | - |
Spain | 34,710 | 26,612 | 8,098 | - |
Denmark | 33,553 | 31,038 | 2,515 | - |
Other | 245,197 | 195,477 | 49,720 | - |
Money Market Funds | 121,397 | 121,397 | - | - |
Total Investments in Securities: | $ 1,257,241 | $ 954,614 | $ 302,627 | $ - |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $241,539,000 of which $14,313,000 and $227,226,000 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
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, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $116,829) - See accompanying schedule: Unaffiliated issuers (cost $880,495) | $ 1,135,844 | |
Fidelity Central Funds (cost $121,397) | 121,397 | |
Total Investments (cost $1,001,892) | | $ 1,257,241 |
Foreign currency held at value (cost $191) | | 191 |
Receivable for investments sold | | 3,252 |
Receivable for fund shares sold | | 301 |
Dividends receivable | | 4,871 |
Distributions receivable from Fidelity Central Funds | | 116 |
Prepaid expenses | | 1 |
Other receivables | | 152 |
Total assets | | 1,266,125 |
| | |
Liabilities | | |
Payable to custodian bank | $ 2,192 | |
Payable for investments purchased | 1,750 | |
Payable for fund shares redeemed | 2,592 | |
Accrued management fee | 712 | |
Distribution and service plan fees payable | 201 | |
Other affiliated payables | 248 | |
Other payables and accrued expenses | 82 | |
Collateral on securities loaned, at value | 121,397 | |
Total liabilities | | 129,174 |
| | |
Net Assets | | $ 1,136,951 |
Net Assets consist of: | | |
Paid in capital | | $ 1,065,667 |
Undistributed net investment income | | 2,243 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (186,460) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 255,501 |
Net Assets | | $ 1,136,951 |
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, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($79,654 ÷ 3,978 shares) | | $ 20.02 |
| | |
Maximum offering price per share (100/94.25 of $20.02) | | $ 21.24 |
Class T:
Net Asset Value and redemption price per share ($400,075 ÷ 19,509 shares) | | $ 20.51 |
| | |
Maximum offering price per share (100/96.50 of $20.51) | | $ 21.25 |
Class B:
Net Asset Value and offering price per share ($6,098 ÷ 314 shares)A | | $ 19.42 |
| | |
Class C:
Net Asset Value and offering price per share ($24,624 ÷ 1,252 shares)A | | $ 19.67 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($626,500 ÷ 30,719 shares) | | $ 20.39 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 9,543 |
Income from Fidelity Central Funds | | 234 |
Income before foreign taxes withheld | | 9,777 |
Less foreign taxes withheld | | (633) |
Total income | | 9,144 |
| | |
Expenses | | |
Management fee
Basic fee | $ 4,018 | |
Performance adjustment | 148 | |
Transfer agent fees | 1,242 | |
Distribution and service plan fees | 1,188 | |
Accounting and security lending fees | 265 | |
Custodian fees and expenses | 108 | |
Independent trustees' compensation | 3 | |
Registration fees | 50 | |
Audit | 45 | |
Legal | 2 | |
Interest | 1 | |
Miscellaneous | 6 | |
Total expenses before reductions | 7,076 | |
Expense reductions | (168) | 6,908 |
Net investment income (loss) | | 2,236 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 73,789 | |
Foreign currency transactions | (25) | |
Total net realized gain (loss) | | 73,764 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 77,294 | |
Assets and liabilities in foreign currencies | 45 | |
Total change in net unrealized appreciation (depreciation) | | 77,339 |
Net gain (loss) | | 151,103 |
Net increase (decrease) in net assets resulting from operations | | $ 153,339 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 2,236 | $ 14,198 |
Net realized gain (loss) | 73,764 | 73,737 |
Change in net unrealized appreciation (depreciation) | 77,339 | 72,077 |
Net increase (decrease) in net assets resulting
from operations | 153,339 | 160,012 |
Distributions to shareholders from net investment income | (12,982) | (17,905) |
Distributions to shareholders from net realized gain | (2,756) | (2,268) |
Total distributions | (15,738) | (20,173) |
Share transactions - net increase (decrease) | (148,277) | (188,997) |
Redemption fees | 9 | 22 |
Total increase (decrease) in net assets | (10,667) | (49,136) |
| | |
Net Assets | | |
Beginning of period | 1,147,618 | 1,196,754 |
End of period (including undistributed net investment income of $2,243 and undistributed net investment income of $12,989, respectively) | $ 1,136,951 | $ 1,147,618 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 17.77 | $ 15.68 | $ 13.56 | $ 26.85 | $ 21.67 | $ 18.36 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .17 | .24 | .38 | .31 | .27 |
Net realized and unrealized gain (loss) | 2.49 | 2.16 | 2.12 | (11.56) | 6.16 | 3.53 |
Total from investment operations | 2.51 | 2.33 | 2.36 | (11.18) | 6.47 | 3.80 |
Distributions from net investment income | (.21) | (.21) | (.24) | (.33) | (.23) | (.19) |
Distributions from net realized gain | (.05) | (.03) | - | (1.78) | (1.06) | (.30) |
Total distributions | (.26) | (.24) | (.24) | (2.11) | (1.29) | (.49) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 20.02 | $ 17.77 | $ 15.68 | $ 13.56 | $ 26.85 | $ 21.67 |
Total Return B,C,D | 14.25% | 14.99% | 17.97% | (45.08)% | 31.44% | 21.12% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.37% A | 1.36% | 1.36% | 1.35% | 1.17% | 1.24% |
Expenses net of fee waivers, if any | 1.36% A | 1.36% | 1.36% | 1.35% | 1.17% | 1.24% |
Expenses net of all reductions | 1.34% A | 1.33% | 1.33% | 1.32% | 1.13% | 1.17% |
Net investment income (loss) | .27% A | 1.04% | 1.79% | 1.83% | 1.34% | 1.31% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 80 | $ 70 | $ 72 | $ 73 | $ 147 | $ 113 |
Portfolio turnover rate G | 37% A | 53% | 83% | 79% | 66% | 65% |
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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.18 | $ 16.03 | $ 13.84 | $ 27.35 | $ 22.05 | $ 18.64 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | .14 | .22 | .36 | .28 | .24 |
Net realized and unrealized gain (loss) | 2.54 | 2.23 | 2.17 | (11.82) | 6.27 | 3.59 |
Total from investment operations | 2.55 | 2.37 | 2.39 | (11.46) | 6.55 | 3.83 |
Distributions from net investment income | (.17) | (.19) | (.20) | (.27) | (.19) | (.12) |
Distributions from net realized gain | (.05) | (.03) | - | (1.78) | (1.06) | (.30) |
Total distributions | (.22) | (.22) | (.20) | (2.05) | (1.25) | (.42) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 20.51 | $ 18.18 | $ 16.03 | $ 13.84 | $ 27.35 | $ 22.05 |
Total Return B,C,D | 14.15% | 14.88% | 17.70% | (45.18)% | 31.24% | 20.92% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.54% A | 1.53% | 1.57% | 1.51% | 1.33% | 1.39% |
Expenses net of fee waivers, if any | 1.53% A | 1.53% | 1.57% | 1.51% | 1.33% | 1.39% |
Expenses net of all reductions | 1.51% A | 1.50% | 1.54% | 1.48% | 1.30% | 1.33% |
Net investment income (loss) | .10% A | .86% | 1.58% | 1.67% | 1.17% | 1.15% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 400 | $ 371 | $ 367 | $ 345 | $ 710 | $ 602 |
Portfolio turnover rate G | 37% A | 53% | 83% | 79% | 66% | 65% |
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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 17.18 | $ 15.16 | $ 13.02 | $ 25.79 | $ 20.81 | $ 17.63 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | .04 | .13 | .22 | .12 | .10 |
Net realized and unrealized gain (loss) | 2.40 | 2.10 | 2.08 | (11.14) | 5.94 | 3.40 |
Total from investment operations | 2.36 | 2.14 | 2.21 | (10.92) | 6.06 | 3.50 |
Distributions from net investment income | (.08) | (.09) | (.07) | (.07) | (.02) | (.02) |
Distributions from net realized gain | (.05) | (.03) | - | (1.78) | (1.06) | (.30) |
Total distributions | (.12) J | (.12) | (.07) | (1.85) | (1.08) | (.32) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 19.42 | $ 17.18 | $ 15.16 | $ 13.02 | $ 25.79 | $ 20.81 |
Total Return B,C,D | 13.84% | 14.15% | 17.09% | (45.50)% | 30.45% | 20.12% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.12% A | 2.11% | 2.12% | 2.10% | 1.94% | 2.05% |
Expenses net of fee waivers, if any | 2.11% A | 2.11% | 2.12% | 2.10% | 1.94% | 2.05% |
Expenses net of all reductions | 2.09% A | 2.09% | 2.08% | 2.08% | 1.91% | 1.99% |
Net investment income (loss) | (.48)% A | .28% | 1.04% | 1.07% | .56% | .49% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 6 | $ 7 | $ 8 | $ 10 | $ 27 | $ 37 |
Portfolio turnover rate G | 37% A | 53% | 83% | 79% | 66% | 65% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $.12 per share is comprised of distributions from net investment income of $.079 and distributions from net realized gain of $.045 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 17.39 | $ 15.36 | $ 13.22 | $ 26.22 | $ 21.19 | $ 17.95 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | .05 | .14 | .22 | .14 | .11 |
Net realized and unrealized gain (loss) | 2.44 | 2.12 | 2.09 | (11.31) | 6.02 | 3.47 |
Total from investment operations | 2.40 | 2.17 | 2.23 | (11.09) | 6.16 | 3.58 |
Distributions from net investment income | (.07) | (.11) | (.09) | (.13) | (.07) | (.04) |
Distributions from net realized gain | (.05) | (.03) | - | (1.78) | (1.06) | (.30) |
Total distributions | (.12) | (.14) | (.09) | (1.91) | (1.13) | (.34) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 19.67 | $ 17.39 | $ 15.36 | $ 13.22 | $ 26.22 | $ 21.19 |
Total Return B,C,D | 13.84% | 14.17% | 17.06% | (45.50)% | 30.48% | 20.22% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.12% A | 2.10% | 2.11% | 2.09% | 1.91% | 1.98% |
Expenses net of fee waivers, if any | 2.11% A | 2.10% | 2.11% | 2.09% | 1.91% | 1.98% |
Expenses net of all reductions | 2.09% A | 2.08% | 2.08% | 2.07% | 1.87% | 1.92% |
Net investment income (loss) | (.48)% A | .29% | 1.05% | 1.08% | .60% | .56% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 25 | $ 22 | $ 23 | $ 22 | $ 46 | $ 41 |
Portfolio turnover rate G | 37% A | 53% | 83% | 79% | 66% | 65% |
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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.10 | $ 15.95 | $ 13.83 | $ 27.35 | $ 22.06 | $ 18.64 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .06 | .22 | .29 | .45 | .40 | .35 |
Net realized and unrealized gain (loss) | 2.52 | 2.23 | 2.14 | (11.78) | 6.26 | 3.58 |
Total from investment operations | 2.58 | 2.45 | 2.43 | (11.33) | 6.66 | 3.93 |
Distributions from net investment income | (.24) | (.27) | (.31) | (.41) | (.31) | (.21) |
Distributions from net realized gain | (.05) | (.03) | - | (1.78) | (1.06) | (.30) |
Total distributions | (.29) | (.30) | (.31) | (2.19) | (1.37) | (.51) |
Redemption fees added to paid in capital D,H | - | - | - | - | - | - |
Net asset value, end of period | $ 20.39 | $ 18.10 | $ 15.95 | $ 13.83 | $ 27.35 | $ 22.06 |
Total Return B,C | 14.41% | 15.49% | 18.32% | (44.92)% | 31.88% | 21.55% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | 1.02% A | 1.01% | 1.06% | 1.01% | .84% | .87% |
Expenses net of fee waivers, if any | 1.01% A | 1.01% | 1.06% | 1.01% | .84% | .87% |
Expenses net of all reductions | .99% A | .98% | 1.02% | .98% | .81% | .81% |
Net investment income (loss) | .62% A | 1.39% | 2.10% | 2.17% | 1.66% | 1.67% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 627 | $ 678 | $ 727 | $ 551 | $ 609 | $ 354 |
Portfolio turnover rate F | 37% A | 53% | 83% | 79% | 66% | 65% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2011 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Advisor Overseas Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, 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 | $ 298,900 |
Gross unrealized depreciation | (58,341) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 240,559 |
| |
Tax cost | $ 1,016,682 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update changes the wording used to describe the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. The update is effective during interim and annual periods beginning after December 15, 2011. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $206,827 and $365,019, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the investment performance of the asset-weighted return of all classes as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .73% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 91 | $ 2 |
Class T | .25% | .25% | 950 | 19 |
Class B | .75% | .25% | 32 | 25 |
Class C | .75% | .25% | 115 | 7 |
| | | $ 1,188 | $ 53 |
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% to 1% for Class B, 1% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
6. 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 | $ 6 |
Class T | 3 |
Class B* | 4 |
Class C* | -** |
| $ 13 |
* 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.
** Amount represents less than $500.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 110 | .30 |
Class T | 420 | .22 |
Class B | 10 | .30 |
Class C | 35 | .30 |
Institutional Class | 667 | .20 |
| $ 1,242 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $1 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average
Interest Rate | Interest
Expense |
Borrower | $ 7,560 | .45% | $ 1 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to
Semiannual Report
8. Security Lending - continued
the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and 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 $228. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of its management fee. For the period, the amount of this reimbursement was $77.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $91 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30, 2011 | Year ended
October 31, 2010 |
From net investment income | | |
Class A | $ 829 | $ 950 |
Class T | 3,501 | 4,334 |
Class B | 30 | 45 |
Class C | 89 | 160 |
Institutional Class | 8,533 | 12,416 |
Total | $ 12,982 | $ 17,905 |
From net realized gain | | |
Class A | $ 178 | $ 134 |
Class T | 911 | 684 |
Class B | 17 | 15 |
Class C | 57 | 44 |
Institutional Class | 1,593 | 1,391 |
Total | $ 2,756 | $ 2,268 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30, 2011 | Year ended
October 31, 2010 | Six months ended
April 30, 2011 | Year ended
October 31, 2010 |
Class A | | | | |
Shares sold | 406 | 475 | $ 7,539 | $ 7,655 |
Reinvestment of distributions | 51 | 61 | 919 | 1,012 |
Shares redeemed | (420) | (1,167) | (7,754) | (18,467) |
Net increase (decrease) | 37 | (631) | $ 704 | $ (9,800) |
Class T | | | | |
Shares sold | 1,846 | 4,009 | $ 34,978 | $ 65,721 |
Reinvestment of distributions | 232 | 288 | 4,288 | 4,889 |
Shares redeemed | (2,969) | (6,821) | (56,201) | (111,516) |
Net increase (decrease) | (891) | (2,524) | $ (16,935) | $ (40,906) |
Class B | | | | |
Shares sold | 8 | 48 | $ 145 | $ 740 |
Reinvestment of distributions | 2 | 3 | 41 | 54 |
Shares redeemed | (93) | (174) | (1,670) | (2,691) |
Net increase (decrease) | (83) | (123) | $ (1,484) | $ (1,897) |
Class C | | | | |
Shares sold | 99 | 120 | $ 1,801 | $ 1,913 |
Reinvestment of distributions | 7 | 11 | 125 | 176 |
Shares redeemed | (141) | (337) | (2,549) | (5,265) |
Net increase (decrease) | (35) | (206) | $ (623) | $ (3,176) |
Institutional Class | | | | |
Shares sold | 1,911 | 12,645 | $ 35,514 | $ 202,633 |
Reinvestment of distributions | 544 | 818 | 9,988 | 13,738 |
Shares redeemed | (9,181) | (21,576) | (175,441) | (349,589) |
Net increase (decrease) | (6,726) | (8,113) | $ (129,939) | $ (133,218) |
Semiannual Report
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, Strategic Advisers International II Fund was the owner of record of approximately 11% of the total outstanding shares of the Fund.
The Fidelity Advisor Freedom Funds were the owners of record, in the aggregate, of approximately 24% 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
FIL Investments (Japan) Limited
Fidelity Management & Research (Japan) Inc.
FIL Investment Advisors (UK) Limited
FIL Investment Advisors
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Northern Trust Company
Chicago, IL
OSI-USAN-0611
1.784904.108
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Value Leaders
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense Ratio | Beginning
Account Value
November 1, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010
to April 30, 2011 |
Class A | 1.20% | | | |
Actual | | $ 1,000.00 | $ 1,178.00 | $ 6.48 |
HypotheticalA | | $ 1,000.00 | $ 1,018.84 | $ 6.01 |
Class T | 1.44% | | | |
Actual | | $ 1,000.00 | $ 1,177.10 | $ 7.77 |
HypotheticalA | | $ 1,000.00 | $ 1,017.65 | $ 7.20 |
Class B | 1.95% | | | |
Actual | | $ 1,000.00 | $ 1,174.40 | $ 10.51 |
HypotheticalA | | $ 1,000.00 | $ 1,015.12 | $ 9.74 |
Class C | 1.95% | | | |
Actual | | $ 1,000.00 | $ 1,173.70 | $ 10.51 |
HypotheticalA | | $ 1,000.00 | $ 1,015.12 | $ 9.74 |
Institutional Class | .83% | | | |
Actual | | $ 1,000.00 | $ 1,180.00 | $ 4.49 |
HypotheticalA | | $ 1,000.00 | $ 1,020.68 | $ 4.16 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Pfizer, Inc. | 4.8 | 3.6 |
Grupo Modelo SAB de CV Series C | 3.8 | 0.3 |
Garmin Ltd. | 3.4 | 0.0 |
General Electric Co. | 3.4 | 1.3 |
Citigroup, Inc. | 3.3 | 2.2 |
Goldman Sachs Group, Inc. | 3.1 | 0.0 |
Alcatel-Lucent SA sponsored ADR | 3.0 | 0.0 |
Chevron Corp. | 3.0 | 3.4 |
Sprint Nextel Corp. | 2.9 | 0.7 |
Merck & Co., Inc. | 2.8 | 3.0 |
| 33.5 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 24.3 | 28.0 |
Health Care | 15.7 | 15.2 |
Energy | 11.7 | 14.9 |
Information Technology | 11.3 | 7.8 |
Consumer Staples | 9.3 | 6.0 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011* | As of October 31, 2010** |
| Stocks 98.7% | | | Stocks 100.3% | |
| Short-Term
Investments and
Net Other Assets 1.3% | |  | Short-Term
Investments and
Net Other Assets† (0.3)% | |
* Foreign investments | 24.8% | | ** Foreign investments | 9.7% | |
† Short-Term Investments and Net Other Assets are not included in pie chart. |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 9.1% |
Automobiles - 0.9% |
Ford Motor Co. (a) | 16,400 | | $ 253,708 |
Honda Motor Co. Ltd. | 3,500 | | 134,538 |
| | 388,246 |
Household Durables - 3.5% |
D.R. Horton, Inc. | 2,000 | | 24,880 |
Garmin Ltd. (d) | 42,641 | | 1,459,601 |
| | 1,484,481 |
Media - 4.0% |
Comcast Corp. Class A (special) (non-vtg.) | 16,537 | | 405,983 |
Time Warner, Inc. | 10,464 | | 396,167 |
Washington Post Co. Class B (d) | 2,119 | | 923,672 |
| | 1,725,822 |
Specialty Retail - 0.7% |
American Eagle Outfitters, Inc. | 18,400 | | 286,304 |
TOTAL CONSUMER DISCRETIONARY | | 3,884,853 |
CONSUMER STAPLES - 9.3% |
Beverages - 3.8% |
Grupo Modelo SAB de CV Series C | 259,500 | | 1,622,734 |
Food & Staples Retailing - 2.3% |
CVS Caremark Corp. | 14,756 | | 534,757 |
Kroger Co. | 8,906 | | 216,505 |
Safeway, Inc. | 10,839 | | 263,496 |
| | 1,014,758 |
Food Products - 1.8% |
Dean Foods Co. (a) | 21,083 | | 235,919 |
Kraft Foods, Inc. Class A | 16,005 | | 537,448 |
| | 773,367 |
Household Products - 0.4% |
Procter & Gamble Co. | 2,583 | | 167,637 |
Tobacco - 1.0% |
Lorillard, Inc. | 3,937 | | 419,291 |
TOTAL CONSUMER STAPLES | | 3,997,787 |
ENERGY - 11.7% |
Energy Equipment & Services - 0.6% |
Transocean Ltd. (a) | 3,300 | | 240,075 |
Common Stocks - continued |
| Shares | | Value |
ENERGY - continued |
Oil, Gas & Consumable Fuels - 11.1% |
Anadarko Petroleum Corp. | 6,192 | | $ 488,796 |
Apache Corp. | 1,800 | | 240,066 |
BP PLC sponsored ADR | 19,000 | | 876,660 |
Chevron Corp. | 11,600 | | 1,269,504 |
ConocoPhillips | 5,400 | | 426,222 |
Marathon Oil Corp. | 9,633 | | 520,567 |
Occidental Petroleum Corp. | 4,084 | | 466,760 |
Suncor Energy, Inc. | 9,900 | | 456,336 |
| | 4,744,911 |
TOTAL ENERGY | | 4,984,986 |
FINANCIALS - 24.3% |
Capital Markets - 6.1% |
Bank of New York Mellon Corp. | 13,500 | | 390,960 |
Goldman Sachs Group, Inc. | 8,867 | | 1,339,006 |
Invesco Ltd. | 4,600 | | 114,402 |
Morgan Stanley | 9,400 | | 245,810 |
Northern Trust Corp. | 5,600 | | 279,944 |
State Street Corp. | 5,500 | | 256,025 |
| | 2,626,147 |
Commercial Banks - 4.2% |
Aozora Bank Ltd. | 134,000 | | 290,226 |
PNC Financial Services Group, Inc. | 1,077 | | 67,140 |
Sumitomo Mitsui Financial Group, Inc. | 14,900 | | 462,765 |
Wells Fargo & Co. | 34,026 | | 990,497 |
| | 1,810,628 |
Consumer Finance - 0.9% |
Discover Financial Services | 15,900 | | 394,956 |
Diversified Financial Services - 7.2% |
Bank of America Corp. | 46,420 | | 570,038 |
Citigroup, Inc. (a) | 308,950 | | 1,418,081 |
JPMorgan Chase & Co. | 23,740 | | 1,083,256 |
| | 3,071,375 |
Insurance - 5.5% |
Berkshire Hathaway, Inc. Class B (a) | 4,240 | | 353,192 |
First American Financial Corp. | 23,158 | | 361,265 |
Lincoln National Corp. | 10,700 | | 334,161 |
MetLife, Inc. | 16,800 | | 786,072 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Insurance - continued |
RenaissanceRe Holdings Ltd. | 2,397 | | $ 168,461 |
XL Group PLC Class A | 13,288 | | 324,493 |
| | 2,327,644 |
Thrifts & Mortgage Finance - 0.4% |
Radian Group, Inc. | 26,100 | | 154,773 |
TOTAL FINANCIALS | | 10,385,523 |
HEALTH CARE - 15.7% |
Biotechnology - 1.3% |
Gilead Sciences, Inc. (a) | 14,320 | | 556,189 |
Health Care Equipment & Supplies - 1.1% |
Boston Scientific Corp. (a) | 20,100 | | 150,549 |
CareFusion Corp. (a) | 10,400 | | 305,448 |
| | 455,997 |
Health Care Providers & Services - 1.0% |
Omnicare, Inc. | 13,241 | | 416,032 |
Pharmaceuticals - 12.3% |
Eli Lilly & Co. | 27,825 | | 1,029,803 |
Johnson & Johnson | 13,528 | | 889,060 |
Merck & Co., Inc. | 33,200 | | 1,193,540 |
Pfizer, Inc. | 98,251 | | 2,059,339 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 2,000 | | 91,460 |
| | 5,263,202 |
TOTAL HEALTH CARE | | 6,691,420 |
INDUSTRIALS - 8.0% |
Aerospace & Defense - 1.5% |
Textron, Inc. | 8,760 | | 228,636 |
United Technologies Corp. | 4,600 | | 412,068 |
| | 640,704 |
Building Products - 0.5% |
Armstrong World Industries, Inc. | 4,822 | | 215,785 |
Construction & Engineering - 0.8% |
Jacobs Engineering Group, Inc. (a) | 6,900 | | 342,309 |
Electrical Equipment - 1.0% |
Alstom SA | 6,501 | | 432,307 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Industrial Conglomerates - 3.4% |
General Electric Co. | 71,180 | | $ 1,455,631 |
Machinery - 0.8% |
Navistar International Corp. (a) | 4,780 | | 332,306 |
TOTAL INDUSTRIALS | | 3,419,042 |
INFORMATION TECHNOLOGY - 11.3% |
Communications Equipment - 4.9% |
Alcatel-Lucent SA sponsored ADR (a)(d) | 198,467 | | 1,297,974 |
Comverse Technology, Inc. (a) | 103,700 | | 790,194 |
| | 2,088,168 |
Computers & Peripherals - 3.0% |
Hewlett-Packard Co. | 8,838 | | 356,790 |
Seagate Technology | 53,069 | | 935,076 |
| | 1,291,866 |
Electronic Equipment & Components - 0.5% |
Corning, Inc. | 10,682 | | 223,681 |
Office Electronics - 1.1% |
Xerox Corp. | 46,300 | | 467,167 |
Semiconductors & Semiconductor Equipment - 0.2% |
Advanced Micro Devices, Inc. (a) | 6,811 | | 61,980 |
Software - 1.6% |
Microsoft Corp. | 26,277 | | 683,728 |
TOTAL INFORMATION TECHNOLOGY | | 4,816,590 |
MATERIALS - 3.4% |
Chemicals - 2.4% |
Clariant AG (Reg.) (a) | 42,257 | | 876,742 |
Dow Chemical Co. | 3,572 | | 146,416 |
| | 1,023,158 |
Metals & Mining - 1.0% |
Goldcorp, Inc. | 7,700 | | 430,454 |
TOTAL MATERIALS | | 1,453,612 |
Common Stocks - continued |
| Shares | | Value |
TELECOMMUNICATION SERVICES - 4.3% |
Diversified Telecommunication Services - 0.6% |
AT&T, Inc. | 2,891 | | $ 89,968 |
Verizon Communications, Inc. | 3,918 | | 148,022 |
| | 237,990 |
Wireless Telecommunication Services - 3.7% |
Sprint Nextel Corp. (a) | 235,616 | | 1,220,491 |
Vodafone Group PLC sponsored ADR | 12,512 | | 364,349 |
| | 1,584,840 |
TOTAL TELECOMMUNICATION SERVICES | | 1,822,830 |
UTILITIES - 1.6% |
Electric Utilities - 1.6% |
NextEra Energy, Inc. | 6,917 | | 391,295 |
PPL Corp. | 10,906 | | 299,152 |
| | 690,447 |
TOTAL COMMON STOCKS (Cost $39,736,831) | 42,147,090 |
Money Market Funds - 10.1% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 613,583 | | 613,583 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 3,704,274 | | 3,704,274 |
TOTAL MONEY MARKET FUNDS (Cost $4,317,857) | 4,317,857 |
TOTAL INVESTMENT PORTFOLIO - 108.8% (Cost $44,054,688) | | 46,464,947 |
NET OTHER ASSETS (LIABILITIES) - (8.8)% | | (3,765,311) |
NET ASSETS - 100% | $ 42,699,636 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 514 |
Fidelity Securities Lending Cash Central Fund | 20,103 |
Total | $ 20,617 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 3,884,853 | $ 3,750,315 | $ 134,538 | $ - |
Consumer Staples | 3,997,787 | 3,997,787 | - | - |
Energy | 4,984,986 | 4,984,986 | - | - |
Financials | 10,385,523 | 9,632,532 | 752,991 | - |
Health Care | 6,691,420 | 6,691,420 | - | - |
Industrials | 3,419,042 | 3,419,042 | - | - |
Information Technology | 4,816,590 | 4,816,590 | - | - |
Materials | 1,453,612 | 1,453,612 | - | - |
Telecommunication Services | 1,822,830 | 1,822,830 | - | - |
Utilities | 690,447 | 690,447 | - | - |
Money Market Funds | 4,317,857 | 4,317,857 | - | - |
Total Investments in Securities: | $ 46,464,947 | $ 45,577,418 | $ 887,529 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 75.2% |
Switzerland | 6.1% |
France | 4.0% |
Mexico | 3.8% |
Ireland | 3.0% |
United Kingdom | 2.8% |
Japan | 2.1% |
Canada | 2.1% |
Others (Individually Less Than 1%) | 0.9% |
| 100.0% |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $34,021,859 of which $19,202,191 and $14,819,668 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $3,606,123) - See accompanying schedule: Unaffiliated issuers (cost $39,736,831) | $ 42,147,090 | |
Fidelity Central Funds (cost $4,317,857) | 4,317,857 | |
Total Investments (cost $44,054,688) | | $ 46,464,947 |
Receivable for investments sold | | 466,623 |
Receivable for fund shares sold | | 25,132 |
Dividends receivable | | 46,178 |
Distributions receivable from Fidelity Central Funds | | 3,819 |
Prepaid expenses | | 55 |
Other receivables | | 2,538 |
Total assets | | 47,009,292 |
| | |
Liabilities | | |
Payable for investments purchased | $ 427,906 | |
Payable for fund shares redeemed | 82,385 | |
Accrued management fee | 9,317 | |
Distribution and service plan fees payable | 14,810 | |
Other affiliated payables | 12,167 | |
Other payables and accrued expenses | 58,797 | |
Collateral on securities loaned, at value | 3,704,274 | |
Total liabilities | | 4,309,656 |
| | |
Net Assets | | $ 42,699,636 |
Net Assets consist of: | | |
Paid in capital | | $ 74,168,413 |
Undistributed net investment income | | 55,223 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (33,903,413) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 2,379,413 |
Net Assets | | $ 42,699,636 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($24,060,292 ÷ 2,042,039 shares) | | $ 11.78 |
| | |
Maximum offering price per share (100/94.25 of $11.78) | | $ 12.50 |
Class T:
Net Asset Value and redemption price per share ($11,450,257 ÷ 970,299 shares) | | $ 11.80 |
| | |
Maximum offering price per share (100/96.50 of $11.80) | | $ 12.23 |
Class B:
Net Asset Value and offering price per share ($1,531,626 ÷ 131,043 shares)A | | $ 11.69 |
| | |
Class C:
Net Asset Value and offering price per share ($4,744,121 ÷ 409,528 shares)A | | $ 11.58 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($913,340 ÷ 77,022 shares) | | $ 11.86 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 415,357 |
Income from Fidelity Central Funds | | 20,617 |
Total income | | 435,974 |
| | |
Expenses | | |
Management fee
Basic fee | $ 120,648 | |
Performance adjustment | (66,303) | |
Transfer agent fees | 64,753 | |
Distribution and service plan fees | 89,904 | |
Accounting and security lending fees | 8,599 | |
Custodian fees and expenses | 22,879 | |
Independent trustees' compensation | 113 | |
Registration fees | 27,392 | |
Audit | 27,400 | |
Legal | 84 | |
Miscellaneous | 265 | |
Total expenses before reductions | 295,734 | |
Expense reductions | (3,456) | 292,278 |
Net investment income (loss) | | 143,696 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 1,765,928 | |
Foreign currency transactions | (5,771) | |
Total net realized gain (loss) | | 1,760,157 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 5,168,658 | |
Assets and liabilities in foreign currencies | (55) | |
Total change in net unrealized appreciation (depreciation) | | 5,168,603 |
Net gain (loss) | | 6,928,760 |
Net increase (decrease) in net assets resulting from operations | | $ 7,072,456 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 143,696 | $ 331,551 |
Net realized gain (loss) | 1,760,157 | 3,334,586 |
Change in net unrealized appreciation (depreciation) | 5,168,603 | 1,707,613 |
Net increase (decrease) in net assets resulting
from operations | 7,072,456 | 5,373,750 |
Distributions to shareholders from net investment income | (358,603) | (478,174) |
Distributions to shareholders from net realized gain | (41,497) | (30,375) |
Total distributions | (400,100) | (508,549) |
Share transactions - net increase (decrease) | (8,724,045) | (17,770,134) |
Total increase (decrease) in net assets | (2,051,689) | (12,904,933) |
| | |
Net Assets | | |
Beginning of period | 44,751,325 | 57,656,258 |
End of period (including undistributed net investment income of $55,223 and undistributed net investment income of $270,130, respectively) | $ 42,699,636 | $ 44,751,325 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.12 | $ 9.30 | $ 8.63 | $ 16.40 | $ 15.08 | $ 13.22 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .04 | .07H | .09 | .16 | .13 | .08 |
Net realized and unrealized gain (loss) | 1.74 | .85 | .75 | (7.09) | 1.99 | 2.15 |
Total from investment operations | 1.78 | .92 | .84 | (6.93) | 2.12 | 2.23 |
Distributions from net investment income | (.11) | (.09) | (.17) | (.12) | (.09) | (.04) |
Distributions from net realized gain | (.01) | (.01) | - | (.72) | (.71) | (.33) |
Total distributions | (.12) | (.10) | (.17) | (.84)J | (.80) | (.37) |
Net asset value, end of period | $ 11.78 | $ 10.12 | $ 9.30 | $ 8.63 | $ 16.40 | $ 15.08 |
Total ReturnB,C,D | 17.80% | 9.91% | 10.13% | (44.43)% | 14.64% | 17.20% |
Ratios to Average Net AssetsF,I | | | | | |
Expenses before reductions | 1.20%A | 1.22% | 1.25% | 1.26% | 1.28% | 1.41% |
Expenses net of fee waivers, if any | 1.20%A | 1.22% | 1.25% | 1.25% | 1.25% | 1.25% |
Expenses net of all
reductions | 1.19%A | 1.21% | 1.25% | 1.25% | 1.24% | 1.24% |
Net investment income (loss) | .82%A | .75%H | 1.10% | 1.21% | .85% | .54% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 24,060 | $ 25,431 | $ 28,585 | $ 34,864 | $ 67,434 | $ 15,398 |
Portfolio turnover rateG | 201%A | 51% | 56% | 74% | 76% | 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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special 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 Total distributions of $.839 per share is comprised of distributions from net investment income of $.117 and distributions from net realized gain of $.722 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.08 | $ 9.27 | $ 8.58 | $ 16.30 | $ 14.99 | $ 13.14 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .03 | .05H | .07 | .13 | .09 | .04 |
Net realized and unrealized gain (loss) | 1.75 | .84 | .75 | (7.06) | 1.97 | 2.15 |
Total from investment operations | 1.78 | .89 | .82 | (6.93) | 2.06 | 2.19 |
Distributions from net investment income | (.05) | (.07) | (.13) | (.07) | (.04) | (.01) |
Distributions from net realized gain | (.01) | (.01) | - | (.72) | (.71) | (.33) |
Total distributions | (.06) | (.08) | (.13) | (.79)J | (.75) | (.34) |
Net asset value, end of period | $ 11.80 | $ 10.08 | $ 9.27 | $ 8.58 | $ 16.30 | $ 14.99 |
Total ReturnB,C,D | 17.71% | 9.62% | 9.90% | (44.57)% | 14.31% | 16.93% |
Ratios to Average Net AssetsF,I | | | | | |
Expenses before reductions | 1.44%A | 1.45% | 1.50% | 1.49% | 1.53% | 1.65% |
Expenses net of fee waivers, if any | 1.44%A | 1.45% | 1.50% | 1.49% | 1.50% | 1.50% |
Expenses net of all
reductions | 1.43%A | 1.45% | 1.49% | 1.49% | 1.49% | 1.49% |
Net investment income (loss) | .58%A | .52%H | .85% | .97% | .60% | .29% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 11,450 | $ 12,735 | $ 20,652 | $ 22,720 | $ 50,998 | $ 30,607 |
Portfolio turnover rateG | 201%A | 51% | 56% | 74% | 76% | 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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special 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 Total distributions of $.790 per share is comprised of distributions from net investment income of $.068 and distributions from net realized gain of $.722 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.99 | $ 9.18 | $ 8.47 | $ 16.07 | $ 14.81 | $ 12.99 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | -J | -H,J | .03 | .06 | .01 | (.03) |
Net realized and unrealized gain (loss) | 1.74 | .84 | .74 | (6.96) | 1.95 | 2.13 |
Total from investment operations | 1.74 | .84 | .77 | (6.90) | 1.96 | 2.10 |
Distributions from net investment income | (.03) | (.02) | (.06) | - | - | - |
Distributions from net realized gain | (.01) | (.01) | - | (.70) | (.70) | (.28) |
Total distributions | (.04) | (.03) | (.06) | (.70)K | (.70) | (.28) |
Net asset value, end of period | $ 11.69 | $ 9.99 | $ 9.18 | $ 8.47 | $ 16.07 | $ 14.81 |
Total ReturnB,C,D | 17.44% | 9.11% | 9.19% | (44.80)% | 13.74% | 16.38% |
Ratios to Average Net AssetsF,I | | | | | |
Expenses before reductions | 1.95%A | 1.97% | 2.00% | 2.03% | 2.10% | 2.23% |
Expenses net of fee waivers, if any | 1.95%A | 1.97% | 2.00% | 2.00% | 2.00% | 2.00% |
Expenses net of all
reductions | 1.94%A | 1.97% | 2.00% | 2.00% | 1.99% | 1.99% |
Net investment income (loss) | .07%A | (.01)%H | .35% | .45% | .10% | (.21)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,532 | $ 1,605 | $ 1,989 | $ 2,615 | $ 6,734 | $ 5,734 |
Portfolio turnover rateG | 201%A | 51% | 56% | 74% | 76% | 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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special 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 $.698 per share is comprised of distributions from net investment income of $.000 and distributions from net realized gain of $.698 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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.92 | $ 9.11 | $ 8.44 | $ 16.04 | $ 14.80 | $ 12.99 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | -J | -H,J | .03 | .06 | .02 | (.03) |
Net realized and unrealized gain (loss) | 1.72 | .83 | .73 | (6.95) | 1.93 | 2.13 |
Total from investment operations | 1.72 | .83 | .76 | (6.89) | 1.95 | 2.10 |
Distributions from net investment income | (.05) | (.02) | (.09) | - | - | - |
Distributions from net realized gain | (.01) | (.01) | - | (.71) | (.71) | (.29) |
Total distributions | (.06) | (.02)M | (.09) | (.71)K | (.71) | (.29) |
Net asset value, end of period | $ 11.58 | $ 9.92 | $ 9.11 | $ 8.44 | $ 16.04 | $ 14.80 |
Total ReturnB,C,D | 17.37% | 9.12% | 9.28% | (44.84)% | 13.69% | 16.38% |
Ratios to Average Net AssetsF,I | | | | | |
Expenses before reductions | 1.95%A | 1.97% | 2.01% | 2.03% | 2.09% | 2.22% |
Expenses net of fee waivers, if any | 1.95%A | 1.97% | 2.00% | 2.00% | 2.00% | 2.00% |
Expenses net of all
reductions | 1.94%A | 1.97% | 2.00% | 2.00% | 1.99% | 1.99% |
Net investment income (loss) | .07%A | -%H,L | .35% | .45% | .10% | (.21)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,744 | $ 4,139 | $ 4,088 | $ 5,358 | $ 9,718 | $ 7,004 |
Portfolio turnover rateG | 201%A | 51% | 56% | 74% | 76% | 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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special 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 $.712 per share is comprised of distributions from net investment income of $.000 and distributions from net realized gain of $.712 per share.
L Amount represents less than .01%
M 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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.19 | $ 9.35 | $ 8.70 | $ 16.51 | $ 15.17 | $ 13.28 |
Income from Investment Operations | | | | | | |
Net investment income (loss)D | .07 | .10G | .11 | .20 | .17 | .11 |
Net realized and unrealized gain (loss) | 1.74 | .86 | .74 | (7.13) | 1.99 | 2.18 |
Total from investment operations | 1.81 | .96 | .85 | (6.93) | 2.16 | 2.29 |
Distributions from net investment income | (.13) | (.11) | (.20) | (.15) | (.11) | (.07) |
Distributions from net realized gain | (.01) | (.01) | - | (.72) | (.71) | (.33) |
Total distributions | (.14) | (.12) | (.20) | (.88)I | (.82) | (.40) |
Net asset value, end of period | $ 11.86 | $ 10.19 | $ 9.35 | $ 8.70 | $ 16.51 | $ 15.17 |
Total ReturnB,C | 18.00% | 10.28% | 10.26% | (44.24)% | 14.89% | 17.58% |
Ratios to Average Net AssetsE,H | | | | | |
Expenses before reductions | .83%A | .98% | 1.00% | .98% | 1.00% | 1.04% |
Expenses net of fee waivers, if any | .83%A | .98% | 1.00% | .98% | 1.00% | 1.00% |
Expenses net of all
reductions | .82%A | .97% | 1.00% | .97% | .99% | .99% |
Net investment income (loss) | 1.19%A | .99%G | 1.35% | 1.48% | 1.10% | .79% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 913 | $ 841 | $ 2,341 | $ 2,021 | $ 6,833 | $ 2,201 |
Portfolio turnover rateF | 201%A | 51% | 56% | 74% | 76% | 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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special 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 Total distributions of $.876 per share is comprised of distributions from net investment income of $.154 and distributions from net realized gain of $.722 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2011 (Unaudited)
1. Organization.
Fidelity Advisor Value Leaders Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the
Semiannual Report
3. Significant Accounting Policies - continued
date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, partnerships, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 4,563,203 |
Gross unrealized depreciation | (2,910,176) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 1,653,027 |
| |
Tax cost | $ 44,811,920 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $43,123,098 and $52,708,451, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .25% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 31,368 | $ 312 |
Class T | .25% | .25% | 28,410 | 496 |
Class B | .75% | .25% | 7,799 | 5,872 |
Class C | .75% | .25% | 22,327 | 2,828 |
| | | $ 89,904 | $ 9,508 |
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% to 1% for Class B, 1% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained by FDC |
Class A | $ 1,446 |
Class T | 719 |
Class B* | 1,558 |
Class C* | 161 |
| 3,884 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 38,193 | .30 |
Class T | 16,666 | .29 |
Class B | 2,348 | .30 |
Class C | 6,756 | .30 |
Institutional Class | 790 | .18 |
| $ 64,753 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $1,510 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $77 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. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and 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 $20,103. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $3,456 for the period.
Semiannual Report
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
From net investment income | | |
Class A | $ 274,577 | $ 284,681 |
Class T | 50,441 | 160,619 |
Class B | 4,151 | 4,372 |
Class C | 18,471 | 6,593 |
Institutional Class | 10,963 | 21,909 |
Total | $ 358,603 | $ 478,174 |
From net realized gain | | |
Class A | $ 24,299 | $ 15,305 |
Class T | 10,732 | 10,853 |
Class B | 1,537 | 1,041 |
Class C | 4,105 | 2,198 |
Institutional Class | 824 | 978 |
Total | $ 41,497 | $ 30,375 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 | Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
Class A | | | | |
Shares sold | 204,027 | 402,871 | $ 2,238,580 | $ 4,034,369 |
Reinvestment of distributions | 28,074 | 29,667 | 288,043 | 290,443 |
Shares redeemed | (702,785) | (994,975) | (7,727,622) | (9,899,783) |
Net increase (decrease) | (470,684) | (562,437) | $ (5,200,999) | $ (5,574,971) |
Class T | | | | |
Shares sold | 77,829 | 129,419 | $ 842,578 | $ 1,299,211 |
Reinvestment of distributions | 5,816 | 17,388 | 59,851 | 169,877 |
Shares redeemed | (376,227) | (1,112,927) | (3,963,112) | (11,167,229) |
Net increase (decrease) | (292,582) | (966,120) | $ (3,060,683) | $ (9,698,141) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 | Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
Class B | | | | |
Shares sold | 57 | 21,226 | $ 593 | $ 215,795 |
Reinvestment of distributions | 507 | 524 | 5,175 | 5,094 |
Shares redeemed | (30,105) | (77,825) | (324,247) | (763,138) |
Net increase (decrease) | (29,541) | (56,075) | $ (318,479) | $ (542,249) |
Class C | | | | |
Shares sold | 48,503 | 78,869 | $ 514,306 | $ 774,653 |
Reinvestment of distributions | 2,055 | 834 | 20,799 | 8,059 |
Shares redeemed | (58,149) | (111,299) | (618,182) | (1,100,227) |
Net increase (decrease) | (7,591) | (31,596) | $ (83,077) | $ (317,515) |
Institutional Class | | | | |
Shares sold | 5,776 | 25,211 | $ 63,632 | $ 254,312 |
Reinvestment of distributions | 1,083 | 2,223 | 11,162 | 21,848 |
Shares redeemed | (12,391) | (195,256) | (135,601) | (1,913,418) |
Net increase (decrease) | (5,532) | (167,822) | $ (60,807) | $ (1,637,258) |
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.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Company
Boston, MA
AVLF-USAN-0611
1.800655.107
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Value Leaders
Fund - Institutional Class
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense Ratio | Beginning
Account Value
November 1, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010
to April 30, 2011 |
Class A | 1.20% | | | |
Actual | | $ 1,000.00 | $ 1,178.00 | $ 6.48 |
HypotheticalA | | $ 1,000.00 | $ 1,018.84 | $ 6.01 |
Class T | 1.44% | | | |
Actual | | $ 1,000.00 | $ 1,177.10 | $ 7.77 |
HypotheticalA | | $ 1,000.00 | $ 1,017.65 | $ 7.20 |
Class B | 1.95% | | | |
Actual | | $ 1,000.00 | $ 1,174.40 | $ 10.51 |
HypotheticalA | | $ 1,000.00 | $ 1,015.12 | $ 9.74 |
Class C | 1.95% | | | |
Actual | | $ 1,000.00 | $ 1,173.70 | $ 10.51 |
HypotheticalA | | $ 1,000.00 | $ 1,015.12 | $ 9.74 |
Institutional Class | .83% | | | |
Actual | | $ 1,000.00 | $ 1,180.00 | $ 4.49 |
HypotheticalA | | $ 1,000.00 | $ 1,020.68 | $ 4.16 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Pfizer, Inc. | 4.8 | 3.6 |
Grupo Modelo SAB de CV Series C | 3.8 | 0.3 |
Garmin Ltd. | 3.4 | 0.0 |
General Electric Co. | 3.4 | 1.3 |
Citigroup, Inc. | 3.3 | 2.2 |
Goldman Sachs Group, Inc. | 3.1 | 0.0 |
Alcatel-Lucent SA sponsored ADR | 3.0 | 0.0 |
Chevron Corp. | 3.0 | 3.4 |
Sprint Nextel Corp. | 2.9 | 0.7 |
Merck & Co., Inc. | 2.8 | 3.0 |
| 33.5 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 24.3 | 28.0 |
Health Care | 15.7 | 15.2 |
Energy | 11.7 | 14.9 |
Information Technology | 11.3 | 7.8 |
Consumer Staples | 9.3 | 6.0 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011* | As of October 31, 2010** |
| Stocks 98.7% | | | Stocks 100.3% | |
| Short-Term
Investments and
Net Other Assets 1.3% | | | Short-Term
Investments and
Net Other Assets† (0.3)% | |
* Foreign investments | 24.8% | | ** Foreign investments | 9.7% | |
† Short-Term Investments and Net Other Assets are not included in pie chart. |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 9.1% |
Automobiles - 0.9% |
Ford Motor Co. (a) | 16,400 | | $ 253,708 |
Honda Motor Co. Ltd. | 3,500 | | 134,538 |
| | 388,246 |
Household Durables - 3.5% |
D.R. Horton, Inc. | 2,000 | | 24,880 |
Garmin Ltd. (d) | 42,641 | | 1,459,601 |
| | 1,484,481 |
Media - 4.0% |
Comcast Corp. Class A (special) (non-vtg.) | 16,537 | | 405,983 |
Time Warner, Inc. | 10,464 | | 396,167 |
Washington Post Co. Class B (d) | 2,119 | | 923,672 |
| | 1,725,822 |
Specialty Retail - 0.7% |
American Eagle Outfitters, Inc. | 18,400 | | 286,304 |
TOTAL CONSUMER DISCRETIONARY | | 3,884,853 |
CONSUMER STAPLES - 9.3% |
Beverages - 3.8% |
Grupo Modelo SAB de CV Series C | 259,500 | | 1,622,734 |
Food & Staples Retailing - 2.3% |
CVS Caremark Corp. | 14,756 | | 534,757 |
Kroger Co. | 8,906 | | 216,505 |
Safeway, Inc. | 10,839 | | 263,496 |
| | 1,014,758 |
Food Products - 1.8% |
Dean Foods Co. (a) | 21,083 | | 235,919 |
Kraft Foods, Inc. Class A | 16,005 | | 537,448 |
| | 773,367 |
Household Products - 0.4% |
Procter & Gamble Co. | 2,583 | | 167,637 |
Tobacco - 1.0% |
Lorillard, Inc. | 3,937 | | 419,291 |
TOTAL CONSUMER STAPLES | | 3,997,787 |
ENERGY - 11.7% |
Energy Equipment & Services - 0.6% |
Transocean Ltd. (a) | 3,300 | | 240,075 |
Common Stocks - continued |
| Shares | | Value |
ENERGY - continued |
Oil, Gas & Consumable Fuels - 11.1% |
Anadarko Petroleum Corp. | 6,192 | | $ 488,796 |
Apache Corp. | 1,800 | | 240,066 |
BP PLC sponsored ADR | 19,000 | | 876,660 |
Chevron Corp. | 11,600 | | 1,269,504 |
ConocoPhillips | 5,400 | | 426,222 |
Marathon Oil Corp. | 9,633 | | 520,567 |
Occidental Petroleum Corp. | 4,084 | | 466,760 |
Suncor Energy, Inc. | 9,900 | | 456,336 |
| | 4,744,911 |
TOTAL ENERGY | | 4,984,986 |
FINANCIALS - 24.3% |
Capital Markets - 6.1% |
Bank of New York Mellon Corp. | 13,500 | | 390,960 |
Goldman Sachs Group, Inc. | 8,867 | | 1,339,006 |
Invesco Ltd. | 4,600 | | 114,402 |
Morgan Stanley | 9,400 | | 245,810 |
Northern Trust Corp. | 5,600 | | 279,944 |
State Street Corp. | 5,500 | | 256,025 |
| | 2,626,147 |
Commercial Banks - 4.2% |
Aozora Bank Ltd. | 134,000 | | 290,226 |
PNC Financial Services Group, Inc. | 1,077 | | 67,140 |
Sumitomo Mitsui Financial Group, Inc. | 14,900 | | 462,765 |
Wells Fargo & Co. | 34,026 | | 990,497 |
| | 1,810,628 |
Consumer Finance - 0.9% |
Discover Financial Services | 15,900 | | 394,956 |
Diversified Financial Services - 7.2% |
Bank of America Corp. | 46,420 | | 570,038 |
Citigroup, Inc. (a) | 308,950 | | 1,418,081 |
JPMorgan Chase & Co. | 23,740 | | 1,083,256 |
| | 3,071,375 |
Insurance - 5.5% |
Berkshire Hathaway, Inc. Class B (a) | 4,240 | | 353,192 |
First American Financial Corp. | 23,158 | | 361,265 |
Lincoln National Corp. | 10,700 | | 334,161 |
MetLife, Inc. | 16,800 | | 786,072 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Insurance - continued |
RenaissanceRe Holdings Ltd. | 2,397 | | $ 168,461 |
XL Group PLC Class A | 13,288 | | 324,493 |
| | 2,327,644 |
Thrifts & Mortgage Finance - 0.4% |
Radian Group, Inc. | 26,100 | | 154,773 |
TOTAL FINANCIALS | | 10,385,523 |
HEALTH CARE - 15.7% |
Biotechnology - 1.3% |
Gilead Sciences, Inc. (a) | 14,320 | | 556,189 |
Health Care Equipment & Supplies - 1.1% |
Boston Scientific Corp. (a) | 20,100 | | 150,549 |
CareFusion Corp. (a) | 10,400 | | 305,448 |
| | 455,997 |
Health Care Providers & Services - 1.0% |
Omnicare, Inc. | 13,241 | | 416,032 |
Pharmaceuticals - 12.3% |
Eli Lilly & Co. | 27,825 | | 1,029,803 |
Johnson & Johnson | 13,528 | | 889,060 |
Merck & Co., Inc. | 33,200 | | 1,193,540 |
Pfizer, Inc. | 98,251 | | 2,059,339 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 2,000 | | 91,460 |
| | 5,263,202 |
TOTAL HEALTH CARE | | 6,691,420 |
INDUSTRIALS - 8.0% |
Aerospace & Defense - 1.5% |
Textron, Inc. | 8,760 | | 228,636 |
United Technologies Corp. | 4,600 | | 412,068 |
| | 640,704 |
Building Products - 0.5% |
Armstrong World Industries, Inc. | 4,822 | | 215,785 |
Construction & Engineering - 0.8% |
Jacobs Engineering Group, Inc. (a) | 6,900 | | 342,309 |
Electrical Equipment - 1.0% |
Alstom SA | 6,501 | | 432,307 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Industrial Conglomerates - 3.4% |
General Electric Co. | 71,180 | | $ 1,455,631 |
Machinery - 0.8% |
Navistar International Corp. (a) | 4,780 | | 332,306 |
TOTAL INDUSTRIALS | | 3,419,042 |
INFORMATION TECHNOLOGY - 11.3% |
Communications Equipment - 4.9% |
Alcatel-Lucent SA sponsored ADR (a)(d) | 198,467 | | 1,297,974 |
Comverse Technology, Inc. (a) | 103,700 | | 790,194 |
| | 2,088,168 |
Computers & Peripherals - 3.0% |
Hewlett-Packard Co. | 8,838 | | 356,790 |
Seagate Technology | 53,069 | | 935,076 |
| | 1,291,866 |
Electronic Equipment & Components - 0.5% |
Corning, Inc. | 10,682 | | 223,681 |
Office Electronics - 1.1% |
Xerox Corp. | 46,300 | | 467,167 |
Semiconductors & Semiconductor Equipment - 0.2% |
Advanced Micro Devices, Inc. (a) | 6,811 | | 61,980 |
Software - 1.6% |
Microsoft Corp. | 26,277 | | 683,728 |
TOTAL INFORMATION TECHNOLOGY | | 4,816,590 |
MATERIALS - 3.4% |
Chemicals - 2.4% |
Clariant AG (Reg.) (a) | 42,257 | | 876,742 |
Dow Chemical Co. | 3,572 | | 146,416 |
| | 1,023,158 |
Metals & Mining - 1.0% |
Goldcorp, Inc. | 7,700 | | 430,454 |
TOTAL MATERIALS | | 1,453,612 |
Common Stocks - continued |
| Shares | | Value |
TELECOMMUNICATION SERVICES - 4.3% |
Diversified Telecommunication Services - 0.6% |
AT&T, Inc. | 2,891 | | $ 89,968 |
Verizon Communications, Inc. | 3,918 | | 148,022 |
| | 237,990 |
Wireless Telecommunication Services - 3.7% |
Sprint Nextel Corp. (a) | 235,616 | | 1,220,491 |
Vodafone Group PLC sponsored ADR | 12,512 | | 364,349 |
| | 1,584,840 |
TOTAL TELECOMMUNICATION SERVICES | | 1,822,830 |
UTILITIES - 1.6% |
Electric Utilities - 1.6% |
NextEra Energy, Inc. | 6,917 | | 391,295 |
PPL Corp. | 10,906 | | 299,152 |
| | 690,447 |
TOTAL COMMON STOCKS (Cost $39,736,831) | 42,147,090 |
Money Market Funds - 10.1% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 613,583 | | 613,583 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 3,704,274 | | 3,704,274 |
TOTAL MONEY MARKET FUNDS (Cost $4,317,857) | 4,317,857 |
TOTAL INVESTMENT PORTFOLIO - 108.8% (Cost $44,054,688) | | 46,464,947 |
NET OTHER ASSETS (LIABILITIES) - (8.8)% | | (3,765,311) |
NET ASSETS - 100% | $ 42,699,636 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 514 |
Fidelity Securities Lending Cash Central Fund | 20,103 |
Total | $ 20,617 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 3,884,853 | $ 3,750,315 | $ 134,538 | $ - |
Consumer Staples | 3,997,787 | 3,997,787 | - | - |
Energy | 4,984,986 | 4,984,986 | - | - |
Financials | 10,385,523 | 9,632,532 | 752,991 | - |
Health Care | 6,691,420 | 6,691,420 | - | - |
Industrials | 3,419,042 | 3,419,042 | - | - |
Information Technology | 4,816,590 | 4,816,590 | - | - |
Materials | 1,453,612 | 1,453,612 | - | - |
Telecommunication Services | 1,822,830 | 1,822,830 | - | - |
Utilities | 690,447 | 690,447 | - | - |
Money Market Funds | 4,317,857 | 4,317,857 | - | - |
Total Investments in Securities: | $ 46,464,947 | $ 45,577,418 | $ 887,529 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 75.2% |
Switzerland | 6.1% |
France | 4.0% |
Mexico | 3.8% |
Ireland | 3.0% |
United Kingdom | 2.8% |
Japan | 2.1% |
Canada | 2.1% |
Others (Individually Less Than 1%) | 0.9% |
| 100.0% |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $34,021,859 of which $19,202,191 and $14,819,668 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $3,606,123) - See accompanying schedule: Unaffiliated issuers (cost $39,736,831) | $ 42,147,090 | |
Fidelity Central Funds (cost $4,317,857) | 4,317,857 | |
Total Investments (cost $44,054,688) | | $ 46,464,947 |
Receivable for investments sold | | 466,623 |
Receivable for fund shares sold | | 25,132 |
Dividends receivable | | 46,178 |
Distributions receivable from Fidelity Central Funds | | 3,819 |
Prepaid expenses | | 55 |
Other receivables | | 2,538 |
Total assets | | 47,009,292 |
| | |
Liabilities | | |
Payable for investments purchased | $ 427,906 | |
Payable for fund shares redeemed | 82,385 | |
Accrued management fee | 9,317 | |
Distribution and service plan fees payable | 14,810 | |
Other affiliated payables | 12,167 | |
Other payables and accrued expenses | 58,797 | |
Collateral on securities loaned, at value | 3,704,274 | |
Total liabilities | | 4,309,656 |
| | |
Net Assets | | $ 42,699,636 |
Net Assets consist of: | | |
Paid in capital | | $ 74,168,413 |
Undistributed net investment income | | 55,223 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (33,903,413) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 2,379,413 |
Net Assets | | $ 42,699,636 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($24,060,292 ÷ 2,042,039 shares) | | $ 11.78 |
| | |
Maximum offering price per share (100/94.25 of $11.78) | | $ 12.50 |
Class T:
Net Asset Value and redemption price per share ($11,450,257 ÷ 970,299 shares) | | $ 11.80 |
| | |
Maximum offering price per share (100/96.50 of $11.80) | | $ 12.23 |
Class B:
Net Asset Value and offering price per share ($1,531,626 ÷ 131,043 shares)A | | $ 11.69 |
| | |
Class C:
Net Asset Value and offering price per share ($4,744,121 ÷ 409,528 shares)A | | $ 11.58 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($913,340 ÷ 77,022 shares) | | $ 11.86 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 415,357 |
Income from Fidelity Central Funds | | 20,617 |
Total income | | 435,974 |
| | |
Expenses | | |
Management fee
Basic fee | $ 120,648 | |
Performance adjustment | (66,303) | |
Transfer agent fees | 64,753 | |
Distribution and service plan fees | 89,904 | |
Accounting and security lending fees | 8,599 | |
Custodian fees and expenses | 22,879 | |
Independent trustees' compensation | 113 | |
Registration fees | 27,392 | |
Audit | 27,400 | |
Legal | 84 | |
Miscellaneous | 265 | |
Total expenses before reductions | 295,734 | |
Expense reductions | (3,456) | 292,278 |
Net investment income (loss) | | 143,696 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 1,765,928 | |
Foreign currency transactions | (5,771) | |
Total net realized gain (loss) | | 1,760,157 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 5,168,658 | |
Assets and liabilities in foreign currencies | (55) | |
Total change in net unrealized appreciation (depreciation) | | 5,168,603 |
Net gain (loss) | | 6,928,760 |
Net increase (decrease) in net assets resulting from operations | | $ 7,072,456 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 143,696 | $ 331,551 |
Net realized gain (loss) | 1,760,157 | 3,334,586 |
Change in net unrealized appreciation (depreciation) | 5,168,603 | 1,707,613 |
Net increase (decrease) in net assets resulting
from operations | 7,072,456 | 5,373,750 |
Distributions to shareholders from net investment income | (358,603) | (478,174) |
Distributions to shareholders from net realized gain | (41,497) | (30,375) |
Total distributions | (400,100) | (508,549) |
Share transactions - net increase (decrease) | (8,724,045) | (17,770,134) |
Total increase (decrease) in net assets | (2,051,689) | (12,904,933) |
| | |
Net Assets | | |
Beginning of period | 44,751,325 | 57,656,258 |
End of period (including undistributed net investment income of $55,223 and undistributed net investment income of $270,130, respectively) | $ 42,699,636 | $ 44,751,325 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.12 | $ 9.30 | $ 8.63 | $ 16.40 | $ 15.08 | $ 13.22 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .04 | .07H | .09 | .16 | .13 | .08 |
Net realized and unrealized gain (loss) | 1.74 | .85 | .75 | (7.09) | 1.99 | 2.15 |
Total from investment operations | 1.78 | .92 | .84 | (6.93) | 2.12 | 2.23 |
Distributions from net investment income | (.11) | (.09) | (.17) | (.12) | (.09) | (.04) |
Distributions from net realized gain | (.01) | (.01) | - | (.72) | (.71) | (.33) |
Total distributions | (.12) | (.10) | (.17) | (.84)J | (.80) | (.37) |
Net asset value, end of period | $ 11.78 | $ 10.12 | $ 9.30 | $ 8.63 | $ 16.40 | $ 15.08 |
Total ReturnB,C,D | 17.80% | 9.91% | 10.13% | (44.43)% | 14.64% | 17.20% |
Ratios to Average Net AssetsF,I | | | | | |
Expenses before reductions | 1.20%A | 1.22% | 1.25% | 1.26% | 1.28% | 1.41% |
Expenses net of fee waivers, if any | 1.20%A | 1.22% | 1.25% | 1.25% | 1.25% | 1.25% |
Expenses net of all
reductions | 1.19%A | 1.21% | 1.25% | 1.25% | 1.24% | 1.24% |
Net investment income (loss) | .82%A | .75%H | 1.10% | 1.21% | .85% | .54% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 24,060 | $ 25,431 | $ 28,585 | $ 34,864 | $ 67,434 | $ 15,398 |
Portfolio turnover rateG | 201%A | 51% | 56% | 74% | 76% | 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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special 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 Total distributions of $.839 per share is comprised of distributions from net investment income of $.117 and distributions from net realized gain of $.722 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.08 | $ 9.27 | $ 8.58 | $ 16.30 | $ 14.99 | $ 13.14 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .03 | .05H | .07 | .13 | .09 | .04 |
Net realized and unrealized gain (loss) | 1.75 | .84 | .75 | (7.06) | 1.97 | 2.15 |
Total from investment operations | 1.78 | .89 | .82 | (6.93) | 2.06 | 2.19 |
Distributions from net investment income | (.05) | (.07) | (.13) | (.07) | (.04) | (.01) |
Distributions from net realized gain | (.01) | (.01) | - | (.72) | (.71) | (.33) |
Total distributions | (.06) | (.08) | (.13) | (.79)J | (.75) | (.34) |
Net asset value, end of period | $ 11.80 | $ 10.08 | $ 9.27 | $ 8.58 | $ 16.30 | $ 14.99 |
Total ReturnB,C,D | 17.71% | 9.62% | 9.90% | (44.57)% | 14.31% | 16.93% |
Ratios to Average Net AssetsF,I | | | | | |
Expenses before reductions | 1.44%A | 1.45% | 1.50% | 1.49% | 1.53% | 1.65% |
Expenses net of fee waivers, if any | 1.44%A | 1.45% | 1.50% | 1.49% | 1.50% | 1.50% |
Expenses net of all
reductions | 1.43%A | 1.45% | 1.49% | 1.49% | 1.49% | 1.49% |
Net investment income (loss) | .58%A | .52%H | .85% | .97% | .60% | .29% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 11,450 | $ 12,735 | $ 20,652 | $ 22,720 | $ 50,998 | $ 30,607 |
Portfolio turnover rateG | 201%A | 51% | 56% | 74% | 76% | 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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special 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 Total distributions of $.790 per share is comprised of distributions from net investment income of $.068 and distributions from net realized gain of $.722 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.99 | $ 9.18 | $ 8.47 | $ 16.07 | $ 14.81 | $ 12.99 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | -J | -H,J | .03 | .06 | .01 | (.03) |
Net realized and unrealized gain (loss) | 1.74 | .84 | .74 | (6.96) | 1.95 | 2.13 |
Total from investment operations | 1.74 | .84 | .77 | (6.90) | 1.96 | 2.10 |
Distributions from net investment income | (.03) | (.02) | (.06) | - | - | - |
Distributions from net realized gain | (.01) | (.01) | - | (.70) | (.70) | (.28) |
Total distributions | (.04) | (.03) | (.06) | (.70)K | (.70) | (.28) |
Net asset value, end of period | $ 11.69 | $ 9.99 | $ 9.18 | $ 8.47 | $ 16.07 | $ 14.81 |
Total ReturnB,C,D | 17.44% | 9.11% | 9.19% | (44.80)% | 13.74% | 16.38% |
Ratios to Average Net AssetsF,I | | | | | |
Expenses before reductions | 1.95%A | 1.97% | 2.00% | 2.03% | 2.10% | 2.23% |
Expenses net of fee waivers, if any | 1.95%A | 1.97% | 2.00% | 2.00% | 2.00% | 2.00% |
Expenses net of all
reductions | 1.94%A | 1.97% | 2.00% | 2.00% | 1.99% | 1.99% |
Net investment income (loss) | .07%A | (.01)%H | .35% | .45% | .10% | (.21)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,532 | $ 1,605 | $ 1,989 | $ 2,615 | $ 6,734 | $ 5,734 |
Portfolio turnover rateG | 201%A | 51% | 56% | 74% | 76% | 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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special 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 $.698 per share is comprised of distributions from net investment income of $.000 and distributions from net realized gain of $.698 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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.92 | $ 9.11 | $ 8.44 | $ 16.04 | $ 14.80 | $ 12.99 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | -J | -H,J | .03 | .06 | .02 | (.03) |
Net realized and unrealized gain (loss) | 1.72 | .83 | .73 | (6.95) | 1.93 | 2.13 |
Total from investment operations | 1.72 | .83 | .76 | (6.89) | 1.95 | 2.10 |
Distributions from net investment income | (.05) | (.02) | (.09) | - | - | - |
Distributions from net realized gain | (.01) | (.01) | - | (.71) | (.71) | (.29) |
Total distributions | (.06) | (.02)M | (.09) | (.71)K | (.71) | (.29) |
Net asset value, end of period | $ 11.58 | $ 9.92 | $ 9.11 | $ 8.44 | $ 16.04 | $ 14.80 |
Total ReturnB,C,D | 17.37% | 9.12% | 9.28% | (44.84)% | 13.69% | 16.38% |
Ratios to Average Net AssetsF,I | | | | | |
Expenses before reductions | 1.95%A | 1.97% | 2.01% | 2.03% | 2.09% | 2.22% |
Expenses net of fee waivers, if any | 1.95%A | 1.97% | 2.00% | 2.00% | 2.00% | 2.00% |
Expenses net of all
reductions | 1.94%A | 1.97% | 2.00% | 2.00% | 1.99% | 1.99% |
Net investment income (loss) | .07%A | -%H,L | .35% | .45% | .10% | (.21)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,744 | $ 4,139 | $ 4,088 | $ 5,358 | $ 9,718 | $ 7,004 |
Portfolio turnover rateG | 201%A | 51% | 56% | 74% | 76% | 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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special 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 $.712 per share is comprised of distributions from net investment income of $.000 and distributions from net realized gain of $.712 per share.
L Amount represents less than .01%
M 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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.19 | $ 9.35 | $ 8.70 | $ 16.51 | $ 15.17 | $ 13.28 |
Income from Investment Operations | | | | | | |
Net investment income (loss)D | .07 | .10G | .11 | .20 | .17 | .11 |
Net realized and unrealized gain (loss) | 1.74 | .86 | .74 | (7.13) | 1.99 | 2.18 |
Total from investment operations | 1.81 | .96 | .85 | (6.93) | 2.16 | 2.29 |
Distributions from net investment income | (.13) | (.11) | (.20) | (.15) | (.11) | (.07) |
Distributions from net realized gain | (.01) | (.01) | - | (.72) | (.71) | (.33) |
Total distributions | (.14) | (.12) | (.20) | (.88)I | (.82) | (.40) |
Net asset value, end of period | $ 11.86 | $ 10.19 | $ 9.35 | $ 8.70 | $ 16.51 | $ 15.17 |
Total ReturnB,C | 18.00% | 10.28% | 10.26% | (44.24)% | 14.89% | 17.58% |
Ratios to Average Net AssetsE,H | | | | | |
Expenses before reductions | .83%A | .98% | 1.00% | .98% | 1.00% | 1.04% |
Expenses net of fee waivers, if any | .83%A | .98% | 1.00% | .98% | 1.00% | 1.00% |
Expenses net of all
reductions | .82%A | .97% | 1.00% | .97% | .99% | .99% |
Net investment income (loss) | 1.19%A | .99%G | 1.35% | 1.48% | 1.10% | .79% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 913 | $ 841 | $ 2,341 | $ 2,021 | $ 6,833 | $ 2,201 |
Portfolio turnover rateF | 201%A | 51% | 56% | 74% | 76% | 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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special 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 Total distributions of $.876 per share is comprised of distributions from net investment income of $.154 and distributions from net realized gain of $.722 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2011 (Unaudited)
1. Organization.
Fidelity Advisor Value Leaders Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the
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3. Significant Accounting Policies - continued
date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
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Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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3. Significant Accounting Policies - continued
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, partnerships, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 4,563,203 |
Gross unrealized depreciation | (2,910,176) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 1,653,027 |
| |
Tax cost | $ 44,811,920 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $43,123,098 and $52,708,451, respectively.
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Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .25% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 31,368 | $ 312 |
Class T | .25% | .25% | 28,410 | 496 |
Class B | .75% | .25% | 7,799 | 5,872 |
Class C | .75% | .25% | 22,327 | 2,828 |
| | | $ 89,904 | $ 9,508 |
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% to 1% for Class B, 1% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
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5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained by FDC |
Class A | $ 1,446 |
Class T | 719 |
Class B* | 1,558 |
Class C* | 161 |
| 3,884 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 38,193 | .30 |
Class T | 16,666 | .29 |
Class B | 2,348 | .30 |
Class C | 6,756 | .30 |
Institutional Class | 790 | .18 |
| $ 64,753 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $1,510 for the period.
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Notes to Financial Statements (Unaudited) - continued
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $77 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. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and 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 $20,103. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $3,456 for the period.
Semiannual Report
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
From net investment income | | |
Class A | $ 274,577 | $ 284,681 |
Class T | 50,441 | 160,619 |
Class B | 4,151 | 4,372 |
Class C | 18,471 | 6,593 |
Institutional Class | 10,963 | 21,909 |
Total | $ 358,603 | $ 478,174 |
From net realized gain | | |
Class A | $ 24,299 | $ 15,305 |
Class T | 10,732 | 10,853 |
Class B | 1,537 | 1,041 |
Class C | 4,105 | 2,198 |
Institutional Class | 824 | 978 |
Total | $ 41,497 | $ 30,375 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 | Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
Class A | | | | |
Shares sold | 204,027 | 402,871 | $ 2,238,580 | $ 4,034,369 |
Reinvestment of distributions | 28,074 | 29,667 | 288,043 | 290,443 |
Shares redeemed | (702,785) | (994,975) | (7,727,622) | (9,899,783) |
Net increase (decrease) | (470,684) | (562,437) | $ (5,200,999) | $ (5,574,971) |
Class T | | | | |
Shares sold | 77,829 | 129,419 | $ 842,578 | $ 1,299,211 |
Reinvestment of distributions | 5,816 | 17,388 | 59,851 | 169,877 |
Shares redeemed | (376,227) | (1,112,927) | (3,963,112) | (11,167,229) |
Net increase (decrease) | (292,582) | (966,120) | $ (3,060,683) | $ (9,698,141) |
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Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 | Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
Class B | | | | |
Shares sold | 57 | 21,226 | $ 593 | $ 215,795 |
Reinvestment of distributions | 507 | 524 | 5,175 | 5,094 |
Shares redeemed | (30,105) | (77,825) | (324,247) | (763,138) |
Net increase (decrease) | (29,541) | (56,075) | $ (318,479) | $ (542,249) |
Class C | | | | |
Shares sold | 48,503 | 78,869 | $ 514,306 | $ 774,653 |
Reinvestment of distributions | 2,055 | 834 | 20,799 | 8,059 |
Shares redeemed | (58,149) | (111,299) | (618,182) | (1,100,227) |
Net increase (decrease) | (7,591) | (31,596) | $ (83,077) | $ (317,515) |
Institutional Class | | | | |
Shares sold | 5,776 | 25,211 | $ 63,632 | $ 254,312 |
Reinvestment of distributions | 1,083 | 2,223 | 11,162 | 21,848 |
Shares redeemed | (12,391) | (195,256) | (135,601) | (1,913,418) |
Net increase (decrease) | (5,532) | (167,822) | $ (60,807) | $ (1,637,258) |
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
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Company
Boston, MA
AVLFI-USAN-0611
1.800658.107
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 24, 2011 |
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 24, 2011 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
| |
Date: | June 24, 2011 |
