UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-3855
Fidelity Advisor Series VIII
(Exact name of registrant as specified in charter)
245 Summer St., Boston, MA 02210
(Address of principal executive offices) (Zip code)
Marc Bryant, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
| |
Date of fiscal year end: | October 31 |
|
|
Date of reporting period: | April 30, 2016 |
Item 1.
Reports to Stockholders
Fidelity Advisor® Global Capital Appreciation Fund
Class I
Semi-Annual Report April 30, 2016 |
 |
Contents
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. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Five Stocks as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Medtronic PLC (Ireland, Health Care Equipment & Supplies) | 1.3 | 0.8 |
| Global Payments, Inc. (United States of America, IT Services) | 1.2 | 1.1 |
| Harman International Industries, Inc. (United States of America, Household Durables) | 1.2 | 0.0 |
| Amgen, Inc. (United States of America, Biotechnology) | 1.1 | 0.7 |
| First Republic Bank (United States of America, Banks) | 1.1 | 0.7 |
| | 5.9 | |
Top Five Market Sectors as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Consumer Discretionary | 17.6 | 21.9 |
| Health Care | 17.0 | 13.0 |
| Financials | 15.8 | 16.4 |
| Information Technology | 15.4 | 21.0 |
| Industrials | 13.4 | 12.0 |
Top Five Countries as of April 30, 2016
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| United States of America | 50.1 | 54.4 |
| Japan | 5.8 | 7.1 |
| Canada | 3.8 | 3.0 |
| Ireland | 2.7 | 1.8 |
| United Kingdom | 2.4 | 4.5 |
Percentages are adjusted for the effect of futures contracts, if applicable.
Asset Allocation (% of fund's net assets)
| As of April 30, 2016 |
| | Stocks | 92.5% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 7.5% |
| As of October 31, 2015 |
| | Stocks | 94.7% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 5.3% |
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments April 30, 2016 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 92.2% | | | |
| | | Shares | Value |
| Australia - 2.0% | | | |
| Altium Ltd. | | 86,364 | $403,851 |
| Ausdrill Ltd. | | 190,649 | 68,131 |
| Burson Group Ltd. | | 147,119 | 557,072 |
| Corporate Travel Managemnt Ltd. | | 40,551 | 439,678 |
| Imdex Ltd. (a) | | 192,909 | 30,069 |
| Japara Healthcare Ltd. | | 170,999 | 367,954 |
| NEXTDC Ltd. (a) | | 80,265 | 175,765 |
| Orora Ltd. | | 186,523 | 374,412 |
| Sonic Healthcare Ltd. | | 308 | 4,520 |
| The Star Entertainment Group Ltd. | | 103,003 | 442,499 |
|
| TOTAL AUSTRALIA | | | 2,863,951 |
|
| Austria - 0.3% | | | |
| CA Immobilien Anlagen AG | | 18,300 | 349,520 |
| IMMOFINANZ Immobilien Anlagen AG (a) | | 46,100 | 108,688 |
|
| TOTAL AUSTRIA | | | 458,208 |
|
| Bailiwick of Jersey - 0.4% | | | |
| Randgold Resources Ltd. sponsored ADR | | 5,300 | 532,650 |
| Belgium - 0.3% | | | |
| Ion Beam Applications SA | | 10,700 | 440,461 |
| Bermuda - 1.9% | | | |
| BW LPG Ltd. | | 6,900 | 41,476 |
| Essent Group Ltd. (a) | | 36,700 | 749,414 |
| Genpact Ltd. (a) | | 51,100 | 1,425,179 |
| Great Eagle Holdings Ltd. | | 34,590 | 140,114 |
| Man Wah Holdings Ltd. | | 274,800 | 320,469 |
|
| TOTAL BERMUDA | | | 2,676,652 |
|
| Brazil - 1.3% | | | |
| Cetip SA - Mercados Organizado | | 37,800 | 464,030 |
| Direcional Engenharia SA | | 57,600 | 102,999 |
| Fleury SA | | 62,100 | 451,045 |
| Lojas Renner SA | | 60,900 | 367,782 |
| Natura Cosmeticos SA | | 3,700 | 27,433 |
| Smiles SA | | 30,700 | 356,162 |
|
| TOTAL BRAZIL | | | 1,769,451 |
|
| British Virgin Islands - 0.0% | | | |
| Epic Gas Ltd. (a) | | 5,100 | 9,501 |
| Canada - 3.8% | | | |
| B2Gold Corp. (a) | | 99,000 | 220,140 |
| CCL Industries, Inc. Class B | | 400 | 73,245 |
| Cott Corp. | | 25,100 | 332,680 |
| FirstService Corp. | | 6,700 | 301,065 |
| Gluskin Sheff + Associates, Inc. | | 23,300 | 331,663 |
| Lions Gate Entertainment Corp. (b) | | 29,100 | 646,020 |
| New Gold, Inc. (a) | | 5,700 | 26,803 |
| North West Co., Inc. | | 14,300 | 317,866 |
| Pason Systems, Inc. | | 4,300 | 62,511 |
| PrairieSky Royalty Ltd. | | 32,600 | 686,453 |
| Premium Brands Holdings Corp. | | 26,500 | 1,143,046 |
| Suncor Energy, Inc. | | 30,900 | 907,027 |
| Winpak Ltd. | | 9,500 | 327,772 |
|
| TOTAL CANADA | | | 5,376,291 |
|
| Cayman Islands - 2.3% | | | |
| AAC Technology Holdings, Inc. | | 45,500 | 315,814 |
| Cheung Kong Property Holdings Ltd. | | 27,000 | 184,396 |
| Cogobuy Group (a) | | 238,000 | 344,412 |
| Fu Shou Yuan International Group Ltd. | | 554,000 | 388,682 |
| Greatview Aseptic Pack Co. Ltd. | | 206,000 | 104,324 |
| HKBN Ltd. | | 275,000 | 338,162 |
| New Oriental Education & Technology Group, Inc. sponsored ADR | | 10,600 | 415,096 |
| Sunny Optical Technology Group Co. Ltd. | | 135,000 | 416,374 |
| Tencent Holdings Ltd. | | 20,300 | 413,071 |
| Tongda Group Holdings Ltd. | | 1,670,000 | 343,041 |
|
| TOTAL CAYMAN ISLANDS | | | 3,263,372 |
|
| China - 0.4% | | | |
| Beijing Urban Consolidated & Development Group Ltd. (H Shares) | | 276,000 | 159,420 |
| Kweichow Moutai Co. Ltd. | | 10,226 | 396,780 |
|
| TOTAL CHINA | | | 556,200 |
|
| Colombia - 0.3% | | | |
| Cementos Argos SA | | 101,360 | 412,031 |
| Denmark - 1.7% | | | |
| Ambu A/S Series B | | 700 | 24,124 |
| Genmab A/S (a) | | 6,400 | 948,228 |
| Pandora A/S | | 2,600 | 337,616 |
| Vestas Wind Systems A/S | | 9,900 | 708,663 |
| William Demant Holding A/S (a) | | 3,400 | 349,432 |
|
| TOTAL DENMARK | | | 2,368,063 |
|
| France - 1.1% | | | |
| Compagnie Plastic Omnium | | 18,600 | 615,936 |
| Les Nouveaux Construct Investment SA | | 5,700 | 155,990 |
| Orpea | | 2,000 | 164,910 |
| Sartorius Stedim Biotech | | 600 | 229,125 |
| SR Teleperformance SA | | 4,500 | 403,974 |
|
| TOTAL FRANCE | | | 1,569,935 |
|
| Germany - 1.4% | | | |
| adidas AG | | 4,700 | 605,983 |
| BAUER AG | | 17,000 | 277,583 |
| DIC Asset AG | | 38,500 | 354,791 |
| LEG Immobilien AG | | 3,913 | 362,076 |
| MLP AG | | 12,800 | 49,891 |
| Nemetschek Se | | 3,700 | 206,750 |
| Rational AG | | 300 | 152,297 |
|
| TOTAL GERMANY | | | 2,009,371 |
|
| Greece - 0.1% | | | |
| Mytilineos Holdings SA | | 24,600 | 98,777 |
| Hong Kong - 1.1% | | | |
| Hang Lung Properties Ltd. | | 170,000 | 338,500 |
| Sino Land Ltd. | | 515,832 | 809,828 |
| Techtronic Industries Co. Ltd. | | 103,000 | 386,113 |
|
| TOTAL HONG KONG | | | 1,534,441 |
|
| India - 0.4% | | | |
| Kajaria Ceramics Ltd. (a) | | 11,303 | 178,626 |
| Tvs Motor Co. Ltd. | | 71,883 | 346,075 |
|
| TOTAL INDIA | | | 524,701 |
|
| Indonesia - 0.5% | | | |
| PT Astra International Tbk | | 11,100 | 5,660 |
| PT Bank Rakyat Indonesia Tbk | | 283,800 | 222,727 |
| Waskita Karya Persero Tbk PT | | 2,297,800 | 408,579 |
|
| TOTAL INDONESIA | | | 636,966 |
|
| Ireland - 2.7% | | | |
| Accenture PLC Class A | | 700 | 79,044 |
| C&C Group PLC | | 50,629 | 227,427 |
| CRH PLC | | 12,000 | 349,451 |
| Jazz Pharmaceuticals PLC (a) | | 8,700 | 1,311,090 |
| Medtronic PLC | | 23,400 | 1,852,110 |
|
| TOTAL IRELAND | | | 3,819,122 |
|
| Isle of Man - 0.0% | | | |
| Optimal Payments PLC (a) | | 3,900 | 21,723 |
| Israel - 0.9% | | | |
| Elbit Systems Ltd. (Israel) | | 4,300 | 430,178 |
| Frutarom Industries Ltd. | | 8,400 | 430,516 |
| Ituran Location & Control Ltd. | | 17,300 | 359,840 |
|
| TOTAL ISRAEL | | | 1,220,534 |
|
| Italy - 0.4% | | | |
| Mediaset SpA | | 34,100 | 153,452 |
| Reply SpA | | 2,417 | 344,011 |
|
| TOTAL ITALY | | | 497,463 |
|
| Japan - 5.8% | | | |
| Ariake Japan Co. Ltd. | | 7,900 | 437,679 |
| Asahi Co. Ltd. | | 68,800 | 1,020,460 |
| Astellas Pharma, Inc. | | 70,300 | 947,826 |
| Broadleaf Co. Ltd. | | 18,700 | 184,795 |
| Chodai Co. Ltd. | | 27,500 | 97,795 |
| Daiwa Industries Ltd. | | 42,900 | 367,736 |
| FJ Next Co. Ltd. | | 18,600 | 86,847 |
| Gulliver International Co. Ltd. (b) | | 37,200 | 365,665 |
| JK Holdings Co. Ltd. | | 16,200 | 69,362 |
| KDDI Corp. | | 15,000 | 432,086 |
| Kinugawa Rubber Industrial Co. Ltd. | | 82,000 | 570,958 |
| Koshidaka Holdings Co. Ltd. | | 15,200 | 298,889 |
| Makita Corp. | | 6,700 | 422,659 |
| Misumi Group, Inc. | | 22,800 | 314,863 |
| Monex Group, Inc. | | 132,300 | 341,297 |
| NEC Corp. | | 108,000 | 262,848 |
| Olympus Corp. | | 26,600 | 1,036,246 |
| Sakai Heavy Industries Ltd. | | 36,000 | 60,799 |
| Seikitokyu Kogyo Co. Ltd. | | 67,700 | 295,917 |
| Sohgo Security Services Co., Ltd. | | 4,400 | 244,332 |
| Sundrug Co. Ltd. | | 4,500 | 319,751 |
|
| TOTAL JAPAN | | | 8,178,810 |
|
| Korea (South) - 0.7% | | | |
| DuzonBizon Co. Ltd. | | 7,893 | 171,890 |
| Fila Korea Ltd. | | 1,480 | 134,349 |
| Osstem Implant Co. Ltd. (a) | | 6,209 | 388,037 |
| Vieworks Co. Ltd. | | 7,579 | 333,412 |
|
| TOTAL KOREA (SOUTH) | | | 1,027,688 |
|
| Luxembourg - 0.6% | | | |
| Stabilus SA (a) | | 17,500 | 874,675 |
| Malaysia - 0.4% | | | |
| My E.G.Services Bhd | | 1,052,600 | 541,591 |
| Marshall Islands - 0.1% | | | |
| StealthGas, Inc. (a) | | 46,700 | 182,597 |
| Mexico - 1.4% | | | |
| Gruma S.A.B. de CV Series B | | 21,900 | 319,921 |
| Grupo Aeroportuario del Pacifico S.A.B. de CV Series B | | 4,900 | 46,167 |
| Grupo Aeroportuario Norte S.A.B. de CV | | 63,200 | 365,726 |
| Grupo Bimbo S.A.B. de CV Series A | | 118,900 | 362,478 |
| Grupo Lala S.A.B. de CV | | 162,700 | 435,105 |
| Promotora y Operadora de Infraestructura S.A.B. de CV | | 30,500 | 386,802 |
|
| TOTAL MEXICO | | | 1,916,199 |
|
| Netherlands - 0.5% | | | |
| Grandvision NV | | 12,900 | 354,507 |
| Heijmans NV (Certificaten Van Aandelen) (a) | | 12,700 | 119,682 |
| Nsi NV | | 35,061 | 166,408 |
|
| TOTAL NETHERLANDS | | | 640,597 |
|
| New Zealand - 0.9% | | | |
| Fisher & Paykel Healthcare Corp. | | 19,592 | 125,173 |
| Ryman Healthcare Group Ltd. | | 58,266 | 363,310 |
| Sky City Entertainment Group Ltd. | | 112,308 | 383,469 |
| Summerset Group Holdings Ltd. | | 118,816 | 368,357 |
|
| TOTAL NEW ZEALAND | | | 1,240,309 |
|
| Panama - 0.2% | | | |
| Copa Holdings SA Class A | | 3,800 | 242,250 |
| Philippines - 0.2% | | | |
| GT Capital Holdings, Inc. | | 11,060 | 321,442 |
| Poland - 0.2% | | | |
| Kruk SA | | 6,900 | 344,372 |
| Singapore - 0.0% | | | |
| Broadcom Ltd. | | 169 | 24,632 |
| South Africa - 0.3% | | | |
| JSE Ltd. | | 34,600 | 401,071 |
| Sweden - 0.7% | | | |
| Attendo AB | | 38,200 | 380,552 |
| Indutrade AB | | 7,000 | 392,518 |
| ITAB Shop Concept AB | | 6,800 | 210,847 |
|
| TOTAL SWEDEN | | | 983,917 |
|
| Switzerland - 1.1% | | | |
| Chubb Ltd. | | 9,200 | 1,084,312 |
| Lonza Group AG | | 3,006 | 500,112 |
|
| TOTAL SWITZERLAND | | | 1,584,424 |
|
| Taiwan - 0.9% | | | |
| Aerospace Industries Development Corp. | | 4,000 | 5,448 |
| Ennoconn Corp. | | 27,000 | 344,364 |
| Hota Industrial Manufacturing Co. Ltd. | | 60,000 | 287,899 |
| Sunny Friend Environmental Technology Co. Ltd. | | 37,000 | 160,357 |
| Taiwan Paiho Ltd. | | 122,000 | 366,721 |
| Voltronic Power Technology Corp. | | 3,150 | 49,635 |
|
| TOTAL TAIWAN | | | 1,214,424 |
|
| Thailand - 1.9% | | | |
| Airports of Thailand PCL (For. Reg.) | | 39,300 | 441,168 |
| Bangkok Airways PCL | | 760,300 | 555,202 |
| Central Pattana PCL (For. Reg.) | | 236,000 | 356,501 |
| Eastern Polymer Group PCL | | 1,347,400 | 513,185 |
| Kasikornbank PCL (For. Reg.) | | 17,900 | 85,604 |
| KCE Electronics PCL | | 7,500 | 16,860 |
| MC Group PCL | | 11,400 | 4,375 |
| Muangthai Leasing PCL | | 647,100 | 370,619 |
| Srisawad Power 1979 PCL | | 309,857 | 374,899 |
|
| TOTAL THAILAND | | | 2,718,413 |
|
| Turkey - 0.5% | | | |
| Turk Tuborg Bira ve Malt Sanayii A/S (a) | | 165,000 | 374,464 |
| Ulker Biskuvi Sanayi A/S | | 46,000 | 366,290 |
|
| TOTAL TURKEY | | | 740,754 |
|
| United Kingdom - 2.4% | | | |
| Alliance Pharma PLC | | 642,800 | 422,652 |
| Ensco PLC Class A | | 19,700 | 235,612 |
| Lloyds Banking Group PLC | | 671,800 | 659,379 |
| Micro Focus International PLC | | 32,700 | 730,550 |
| Royal Mail PLC | | 55,700 | 396,269 |
| Steris PLC | | 10,900 | 770,303 |
| U & I Group PLC | | 26,800 | 77,828 |
| Virgin Money Holdings Uk PLC | | 16,200 | 86,421 |
|
| TOTAL UNITED KINGDOM | | | 3,379,014 |
|
| United States of America - 50.1% | | | |
| Abraxas Petroleum Corp. (a) | | 408,100 | 620,312 |
| Adobe Systems, Inc. (a) | | 1,800 | 169,596 |
| AFLAC, Inc. | | 5,500 | 379,335 |
| Air Lease Corp. Class A | | 5,300 | 161,544 |
| Albemarle Corp. U.S. | | 16,400 | 1,085,024 |
| Alphabet, Inc.: | | | |
| Class A | | 2,100 | 1,486,548 |
| Class C | | 1,259 | 872,500 |
| AMC Networks, Inc. Class A (a) | | 8,900 | 580,547 |
| American Tower Corp. | | 3,600 | 377,568 |
| Amgen, Inc. | | 10,000 | 1,583,000 |
| Amplify Snack Brands, Inc. (b) | | 31,500 | 485,415 |
| Apache Corp. | | 15,200 | 826,880 |
| AT&T, Inc. | | 9,500 | 368,790 |
| AutoZone, Inc. (a) | | 700 | 535,661 |
| Baker Hughes, Inc. | | 3,900 | 188,604 |
| Bank of America Corp. | | 41,600 | 605,696 |
| Becton, Dickinson & Co. | | 8,000 | 1,290,080 |
| Biogen, Inc. (a) | | 4,600 | 1,264,954 |
| Boise Cascade Co. (a) | | 8,400 | 175,308 |
| Boston Scientific Corp. (a) | | 68,300 | 1,497,136 |
| Cadence Design Systems, Inc. (a) | | 17,000 | 394,230 |
| Cambrex Corp. (a) | | 2,200 | 106,128 |
| Capital One Financial Corp. | | 12,200 | 883,158 |
| Catalent, Inc. (a) | | 43,100 | 1,272,743 |
| CDW Corp. | | 31,400 | 1,208,900 |
| CEB, Inc. | | 5,000 | 308,450 |
| CIT Group, Inc. | | 16,900 | 584,233 |
| Citigroup, Inc. | | 32,700 | 1,513,356 |
| Colfax Corp. (a) | | 12,600 | 408,618 |
| Continental Resources, Inc. (a)(b) | | 4,100 | 152,766 |
| Coty, Inc. Class A | | 500 | 15,200 |
| CPI Card Group (b) | | 38,000 | 301,340 |
| Cree, Inc. (a) | | 20,300 | 497,553 |
| Cummins, Inc. | | 3,100 | 362,793 |
| Dermira, Inc. (a) | | 3,100 | 78,399 |
| Discover Financial Services | | 9,300 | 523,311 |
| Eastman Chemical Co. | | 4,200 | 320,796 |
| Ethan Allen Interiors, Inc. | | 16,900 | 575,276 |
| Facebook, Inc. Class A (a) | | 6,200 | 728,996 |
| Fair Isaac Corp. | | 9,300 | 992,403 |
| First Republic Bank | | 21,900 | 1,540,008 |
| Fortune Brands Home & Security, Inc. | | 8,200 | 454,362 |
| Franklin Resources, Inc. | | 19,800 | 739,332 |
| Global Payments, Inc. | | 23,800 | 1,717,884 |
| Greenhill & Co., Inc. | | 5,400 | 118,908 |
| Halliburton Co. | | 18,300 | 755,973 |
| Harman International Industries, Inc. | | 22,000 | 1,688,720 |
| HealthSouth Corp. warrants 1/17/17 (a) | | 10 | 36 |
| Helmerich & Payne, Inc. | | 2,300 | 152,076 |
| Houghton Mifflin Harcourt Co. (a) | | 19,800 | 406,098 |
| Huron Consulting Group, Inc. (a) | | 1,700 | 94,537 |
| INC Research Holdings, Inc. Class A (a) | | 7,300 | 351,349 |
| Interpublic Group of Companies, Inc. | | 41,000 | 940,540 |
| Interval Leisure Group, Inc. (b) | | 6,400 | 90,368 |
| IPG Photonics Corp. (a) | | 5,800 | 502,686 |
| iRobot Corp. (a)(b) | | 11,000 | 411,180 |
| Johnson & Johnson | | 10,900 | 1,221,672 |
| Johnson Controls, Inc. | | 400 | 16,560 |
| Kate Spade & Co. (a) | | 17,400 | 447,702 |
| Keysight Technologies, Inc. (a) | | 16,800 | 438,144 |
| Ladder Capital Corp. Class A | | 8,419 | 100,270 |
| Lakeland Financial Corp. | | 11,100 | 524,919 |
| Las Vegas Sands Corp. | | 2,300 | 103,845 |
| Lennox International, Inc. | | 9,300 | 1,255,035 |
| M&T Bank Corp. | | 3,100 | 366,792 |
| Malibu Boats, Inc. Class A (a) | | 52,300 | 920,480 |
| Marsh & McLennan Companies, Inc. | | 2,700 | 170,505 |
| Maxim Integrated Products, Inc. | | 19,500 | 696,540 |
| Microchip Technology, Inc. | | 959 | 46,598 |
| NACCO Industries, Inc. Class A | | 15,400 | 916,608 |
| News Corp. Class A | | 900 | 11,178 |
| Northrop Grumman Corp. | | 4,800 | 990,048 |
| NVR, Inc. (a) | | 500 | 830,645 |
| Oaktree Capital Group LLC Class A | | 1,500 | 72,465 |
| Omega Flex, Inc. | | 23,679 | 779,986 |
| Omnicom Group, Inc. | | 5,500 | 456,335 |
| Oxford Industries, Inc. | | 1,600 | 106,272 |
| Pacira Pharmaceuticals, Inc. (a) | | 5,600 | 303,016 |
| PayPal Holdings, Inc. (a) | | 12,300 | 481,914 |
| PDC Energy, Inc. (a) | | 1,700 | 106,743 |
| Praxair, Inc. | | 3,100 | 364,126 |
| Procter & Gamble Co. | | 5,400 | 432,648 |
| Progressive Corp. | | 21,900 | 713,940 |
| PulteGroup, Inc. | | 60,300 | 1,108,917 |
| PVH Corp. | | 4,400 | 420,640 |
| Qualcomm, Inc. | | 12,400 | 626,448 |
| Regeneron Pharmaceuticals, Inc. (a) | | 300 | 113,013 |
| Regions Financial Corp. | | 41,800 | 392,084 |
| ResMed, Inc. | | 7,619 | 425,140 |
| Rexnord Corp. (a) | | 64,200 | 1,399,560 |
| Rockwell Collins, Inc. | | 4,400 | 388,036 |
| Ruth's Hospitality Group, Inc. | | 26,500 | 420,820 |
| Semtech Corp. (a) | | 6,900 | 149,316 |
| SLM Corp. (a) | | 79,000 | 534,830 |
| SM Energy Co. | | 10,200 | 317,832 |
| Southwestern Energy Co. (a)(b) | | 49,000 | 658,070 |
| Stanley Black & Decker, Inc. | | 3,700 | 414,104 |
| Store Capital Corp. | | 40,800 | 1,047,336 |
| Surgical Care Affiliates, Inc. (a) | | 9,900 | 478,665 |
| Synchrony Financial (a) | | 15,300 | 467,721 |
| Syntel, Inc. (a) | | 3,200 | 136,096 |
| Tenneco, Inc. (a) | | 4,900 | 261,170 |
| Thermo Fisher Scientific, Inc. | | 9,800 | 1,413,650 |
| TJX Companies, Inc. | | 5,600 | 424,592 |
| Toll Brothers, Inc. (a) | | 31,800 | 868,140 |
| Total System Services, Inc. | | 13,600 | 695,504 |
| TransUnion Holding Co., Inc. | | 11,900 | 356,405 |
| Twenty-First Century Fox, Inc. Class B | | 18,200 | 548,184 |
| U.S. Bancorp | | 10,900 | 465,321 |
| UMB Financial Corp. | | 13,000 | 724,750 |
| Vantiv, Inc. (a) | | 27,900 | 1,521,666 |
| Visa, Inc. Class A | | 8,800 | 679,712 |
| VSE Corp. | | 15,394 | 955,044 |
| WESCO International, Inc. (a) | | 7,800 | 458,562 |
| Western Digital Corp. | | 12,900 | 527,159 |
| WestRock Co. | | 11,300 | 472,905 |
| Wyndham Worldwide Corp. | | 4,700 | 333,465 |
| Xylem, Inc. | | 24,200 | 1,011,076 |
| Yum! Brands, Inc. | | 2,200 | 175,032 |
| Zimmer Biomet Holdings, Inc. | | 3,500 | 405,195 |
|
| TOTAL UNITED STATES OF AMERICA | | | 70,418,350 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $119,508,941) | | | 129,635,393 |
|
| Nonconvertible Preferred Stocks - 0.3% | | | |
| Brazil - 0.0% | | | |
| Banco do Estado Rio Grande do Sul SA | | 36,300 | 89,820 |
| Germany - 0.3% | | | |
| Sartorius AG (non-vtg.) | | 1,600 | 394,722 |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | | | |
| (Cost $317,351) | | | 484,542 |
| | | Principal Amount(c) | Value |
|
| Nonconvertible Bonds - 0.0% | | | |
| Canada - 0.0% | | | |
| Constellation Software, Inc. 7.6% 3/31/40 (d) | | | |
| (Cost $4,949) | | 5,600 | 4,859 |
| | | Shares | Value |
|
| Money Market Funds - 9.6% | | | |
| Fidelity Cash Central Fund, 0.38% (e) | | 10,341,455 | 10,341,455 |
| Fidelity Securities Lending Cash Central Fund, 0.42% (e)(f) | | 3,092,919 | 3,092,919 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $13,434,374) | | | 13,434,374 |
| TOTAL INVESTMENT PORTFOLIO - 102.1% | | | |
| (Cost $133,265,615) | | | 143,559,168 |
| NET OTHER ASSETS (LIABILITIES) - (2.1)% | | | (2,908,682) |
| NET ASSETS - 100% | | | $140,650,486 |
Currency Abbreviations
CAD – Canadian dollar
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Amount is stated in United States dollars unless otherwise noted.
(d) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(e) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
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 | $14,202 |
| Fidelity Securities Lending Cash Central Fund | 15,272 |
| Total | $29,474 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2016, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Consumer Discretionary | $24,304,820 | $20,522,325 | $3,782,495 | $-- |
| Consumer Staples | 5,994,183 | 5,236,753 | 757,430 | -- |
| Energy | 5,904,433 | 5,894,932 | -- | 9,501 |
| Financials | 22,553,136 | 20,079,622 | 2,473,514 | -- |
| Health Care | 23,977,877 | 21,989,285 | 1,988,592 | -- |
| Industrials | 18,705,820 | 15,964,274 | 2,741,546 | -- |
| Information Technology | 21,629,094 | 19,693,151 | 1,935,943 | -- |
| Materials | 5,911,534 | 5,358,982 | 552,552 | -- |
| Telecommunication Services | 1,139,038 | 368,790 | 770,248 | -- |
| Corporate Bonds | 4,859 | -- | 4,859 | -- |
| Money Market Funds | 13,434,374 | 13,434,374 | -- | -- |
| Total Investments in Securities: | $143,559,168 | $128,542,488 | $15,007,179 | $9,501 |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2016. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
| Transfers | Total |
| Level 1 to Level 2 | $113,066 |
| Level 2 to Level 1 | $2,934,482 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | April 30, 2016 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $3,014,507) — See accompanying schedule:
Unaffiliated issuers (cost $119,831,241) | $130,124,794 | |
| Fidelity Central Funds (cost $13,434,374) | 13,434,374 | |
| Total Investments (cost $133,265,615) | | $143,559,168 |
| Cash | | 46,827 |
| Foreign currency held at value (cost $2,179) | | 2,171 |
| Receivable for investments sold | | 838,884 |
| Receivable for fund shares sold | | 272,310 |
| Dividends receivable | | 172,432 |
| Interest receivable | | 29 |
| Distributions receivable from Fidelity Central Funds | | 8,599 |
| Prepaid expenses | | 80 |
| Receivable from investment adviser for expense reductions | | 5,601 |
| Other receivables | | 50,434 |
| Total assets | | 144,956,535 |
| Liabilities | | |
| Payable for investments purchased | $600,487 | |
| Payable for fund shares redeemed | 407,290 | |
| Accrued management fee | 101,582 | |
| Distribution and service plan fees payable | 35,187 | |
| Other affiliated payables | 28,238 | |
| Other payables and accrued expenses | 40,346 | |
| Collateral on securities loaned, at value | 3,092,919 | |
| Total liabilities | | 4,306,049 |
| Net Assets | | $140,650,486 |
| Net Assets consist of: | | |
| Paid in capital | | $133,122,043 |
| Accumulated net investment loss | | (151,316) |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (2,593,177) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 10,272,936 |
| Net Assets | | $140,650,486 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($40,529,046 ÷ 2,596,455 shares) | | $15.61 |
| Maximum offering price per share (100/94.25 of $15.61) | | $16.56 |
| Class T: | | |
| Net Asset Value and redemption price per share ($22,097,718 ÷ 1,470,368 shares) | | $15.03 |
| Maximum offering price per share (100/96.50 of $15.03) | | $15.58 |
| Class B: | | |
| Net Asset Value and offering price per share ($639,736 ÷ 46,187 shares)(a) | | $13.85 |
| Class C: | | |
| Net Asset Value and offering price per share ($20,375,646 ÷ 1,475,364 shares)(a) | | $13.81 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($57,008,340 ÷ 3,501,116 shares) | | $16.28 |
(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.
Statement of Operations
| | | Six months ended April 30, 2016 (Unaudited) |
| Investment Income | | |
| Dividends | | $951,020 |
| Income from Fidelity Central Funds | | 29,474 |
| Income before foreign taxes withheld | | 980,494 |
| Less foreign taxes withheld | | (37,018) |
| Total income | | 943,476 |
| Expenses | | |
| Management fee | | |
| Basic fee | $485,485 | |
| Performance adjustment | 114,993 | |
| Transfer agent fees | 146,216 | |
| Distribution and service plan fees | 210,369 | |
| Accounting and security lending fees | 27,177 | |
| Custodian fees and expenses | 13,476 | |
| Independent trustees' compensation | 303 | |
| Registration fees | 62,303 | |
| Audit | 54,244 | |
| Legal | 2,964 | |
| Miscellaneous | 494 | |
| Total expenses before reductions | 1,118,024 | |
| Expense reductions | (75,279) | 1,042,745 |
| Net investment income (loss) | | (99,269) |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (2,212,395) | |
| Foreign currency transactions | 1,967 | |
| Total net realized gain (loss) | | (2,210,428) |
Change in net unrealized appreciation (depreciation) on:
Investment securities | 266,974 | |
| Assets and liabilities in foreign currencies | 7,732 | |
| Total change in net unrealized appreciation (depreciation) | | 274,706 |
| Net gain (loss) | | (1,935,722) |
| Net increase (decrease) in net assets resulting from operations | | $(2,034,991) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended April 30, 2016 (Unaudited) | Year ended October 31, 2015 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $(99,269) | $(180,159) |
| Net realized gain (loss) | (2,210,428) | 1,861,188 |
| Change in net unrealized appreciation (depreciation) | 274,706 | 504,624 |
| Net increase (decrease) in net assets resulting from operations | (2,034,991) | 2,185,653 |
| Distributions to shareholders from net realized gain | (833,839) | – |
| Share transactions - net increase (decrease) | (2,907,901) | 31,147,206 |
| Redemption fees | 268 | 3,469 |
| Total increase (decrease) in net assets | (5,776,463) | 33,336,328 |
| Net Assets | | |
| Beginning of period | 146,426,949 | 113,090,621 |
| End of period (including accumulated net investment loss of $151,316 and accumulated net investment loss of $52,047, respectively) | $140,650,486 | $146,426,949 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Capital Appreciation Fund Class A
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $15.89 | $15.32 | $13.64 | $10.40 | $9.57 | $11.41 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.01) | (.01) | .01 | .04 | .02 | (.03) |
| Net realized and unrealized gain (loss) | (.18) | .58 | 1.76 | 3.20 | .81 | (1.76) |
| Total from investment operations | (.19) | .57 | 1.77 | 3.24 | .83 | (1.79) |
| Distributions from net investment income | – | – | (.02) | – | – | – |
| Distributions from net realized gain | (.09) | – | (.06) | – | – | (.05) |
| Total distributions | (.09) | – | (.09)B | – | – | (.05) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
| Net asset value, end of period | $15.61 | $15.89 | $15.32 | $13.64 | $10.40 | $9.57 |
| Total ReturnD,E,F | (1.22)% | 3.72% | 13.03% | 31.15% | 8.67% | (15.81)% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 1.58%I | 1.57% | 1.62% | 1.38% | 1.43% | 1.51% |
| Expenses net of fee waivers, if any | 1.45%I | 1.45% | 1.45% | 1.38% | 1.43% | 1.45% |
| Expenses net of all reductions | 1.45%I | 1.44% | 1.45% | 1.35% | 1.40% | 1.43% |
| Net investment income (loss) | (.09)%I | (.07)% | .07% | .33% | .22% | (.24)% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $40,529 | $41,225 | $35,987 | $33,694 | $26,961 | $36,367 |
| Portfolio turnover rateJ | 114%I | 176% | 249% | 211% | 155% | 140% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.09 per share is comprised of distributions from net investment income of $.024 and distributions from net realized gain of $.064 per share.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Capital Appreciation Fund Class T
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $15.32 | $14.81 | $13.19 | $10.09 | $9.31 | $11.11 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.02) | (.05) | (.03) | –B | –B | (.05) |
| Net realized and unrealized gain (loss) | (.18) | .56 | 1.71 | 3.10 | .78 | (1.72) |
| Total from investment operations | (.20) | .51 | 1.68 | 3.10 | .78 | (1.77) |
| Distributions from net realized gain | (.09) | – | (.06) | – | – | (.03) |
| Total distributions | (.09) | – | (.06) | – | – | (.03) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $15.03 | $15.32 | $14.81 | $13.19 | $10.09 | $9.31 |
| Total ReturnC,D,E | (1.33)% | 3.44% | 12.77% | 30.72% | 8.38% | (15.97)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 1.88%H | 1.89% | 1.93% | 1.68% | 1.71% | 1.80% |
| Expenses net of fee waivers, if any | 1.70%H | 1.70% | 1.70% | 1.68% | 1.70% | 1.70% |
| Expenses net of all reductions | 1.70%H | 1.69% | 1.70% | 1.64% | 1.68% | 1.68% |
| Net investment income (loss) | (.34)%H | (.32)% | (.17)% | .04% | (.05)% | (.49)% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $22,098 | $24,017 | $20,975 | $19,193 | $15,731 | $24,180 |
| Portfolio turnover rateI | 114%H | 176% | 249% | 211% | 155% | 140% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Capital Appreciation Fund Class B
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $14.16 | $13.75 | $12.27 | $9.43 | $8.74 | $10.46 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.06) | (.12) | (.09) | (.05) | (.05) | (.10) |
| Net realized and unrealized gain (loss) | (.16) | .53 | 1.58 | 2.89 | .74 | (1.62) |
| Total from investment operations | (.22) | .41 | 1.49 | 2.84 | .69 | (1.72) |
| Distributions from net realized gain | (.09) | – | (.01) | – | – | –B |
| Total distributions | (.09) | – | (.01) | – | – | – |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $13.85 | $14.16 | $13.75 | $12.27 | $9.43 | $8.74 |
| Total ReturnC,D,E | (1.58)% | 2.98% | 12.11% | 30.12% | 7.89% | (16.42)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 2.40%H | 2.44% | 2.44% | 2.17% | 2.19% | 2.32% |
| Expenses net of fee waivers, if any | 2.20%H | 2.20% | 2.20% | 2.17% | 2.19% | 2.20% |
| Expenses net of all reductions | 2.20%H | 2.19% | 2.20% | 2.13% | 2.17% | 2.18% |
| Net investment income (loss) | (.84)%H | (.82)% | (.68)% | (.45)% | (.54)% | (.99)% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $640 | $882 | $1,223 | $1,331 | $1,401 | $1,926 |
| Portfolio turnover rateI | 114%H | 176% | 249% | 211% | 155% | 140% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Capital Appreciation Fund Class C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $14.12 | $13.72 | $12.26 | $9.41 | $8.73 | $10.46 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.06) | (.12) | (.09) | (.05) | (.05) | (.10) |
| Net realized and unrealized gain (loss) | (.16) | .52 | 1.58 | 2.90 | .73 | (1.61) |
| Total from investment operations | (.22) | .40 | 1.49 | 2.85 | .68 | (1.71) |
| Distributions from net realized gain | (.09) | – | (.03) | – | – | (.02) |
| Total distributions | (.09) | – | (.03) | – | – | (.02) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $13.81 | $14.12 | $13.72 | $12.26 | $9.41 | $8.73 |
| Total ReturnC,D,E | (1.58)% | 2.92% | 12.13% | 30.29% | 7.79% | (16.38)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 2.34%H | 2.34% | 2.40% | 2.16% | 2.18% | 2.28% |
| Expenses net of fee waivers, if any | 2.20%H | 2.20% | 2.20% | 2.16% | 2.18% | 2.20% |
| Expenses net of all reductions | 2.20%H | 2.19% | 2.20% | 2.13% | 2.16% | 2.18% |
| Net investment income (loss) | (.84)%H | (.82)% | (.67)% | (.45)% | (.53)% | (.99)% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $20,376 | $21,186 | $15,747 | $13,055 | $9,421 | $11,632 |
| Portfolio turnover rateI | 114%H | 176% | 249% | 211% | 155% | 140% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Capital Appreciation Fund Class I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $16.55 | $15.92 | $14.18 | $10.78 | $9.88 | $11.76 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .01 | .03 | .05 | .09 | .06 | –B |
| Net realized and unrealized gain (loss) | (.19) | .60 | 1.82 | 3.33 | .84 | (1.82) |
| Total from investment operations | (.18) | .63 | 1.87 | 3.42 | .90 | (1.82) |
| Distributions from net investment income | – | – | (.06) | (.02) | – | – |
| Distributions from net realized gain | (.09) | – | (.06) | – | – | (.06) |
| Total distributions | (.09) | – | (.13)C | (.02) | – | (.06) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $16.28 | $16.55 | $15.92 | $14.18 | $10.78 | $9.88 |
| Total ReturnD,E | (1.11)% | 3.96% | 13.27% | 31.74% | 9.11% | (15.60)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 1.25%H | 1.26% | 1.29% | 1.02% | 1.06% | 1.18% |
| Expenses net of fee waivers, if any | 1.20%H | 1.20% | 1.20% | 1.02% | 1.06% | 1.17% |
| Expenses net of all reductions | 1.20%H | 1.19% | 1.20% | .99% | 1.03% | 1.15% |
| Net investment income (loss) | .16%H | .18% | .33% | .69% | .59% | .04% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $57,008 | $59,117 | $39,159 | $30,153 | $22,548 | $28,725 |
| Portfolio turnover rateI | 114%H | 176% | 249% | 211% | 155% | 140% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total distributions of $.13 per share is comprised of distributions from net investment income of $.064 and distributions from net realized gain of $.064 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2016
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 Class I shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a maximum holding period of seven years from the initial date of purchase. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective on or about July 1, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of April 30, 2016, including information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), partnerships, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
| Gross unrealized appreciation | $16,414,631 |
| Gross unrealized depreciation | (6,529,874) |
| Net unrealized appreciation (depreciation) on securities | $9,884,757 |
| Tax cost | $133,674,411 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $75,516,537 and $82,090,398, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to its benchmark index, the MSCI All Country World Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .86% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
| Class A | -% | .25% | $49,403 | $– |
| Class T | .25% | .25% | 56,128 | – |
| Class B | .75% | .25% | 3,745 | 2,809 |
| Class C | .75% | .25% | 101,093 | 20,614 |
| | | | $210,369 | $23,423 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $8,015 |
| Class T | 1,944 |
| Class B(a) | 71 |
| Class C(a) | 893 |
| | $10,923 |
(a) When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| | Amount | % of
Class-Level Average
Net Assets(a) |
| Class A | $45,513 | .23 |
| Class T | 32,421 | .29 |
| Class B | 1,134 | .30 |
| Class C | 24,445 | .24 |
| Class I | 42,703 | .15 |
| | $146,216 | |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1,145 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $123 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $103,090. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $15,272, including $1,875 from securities loaned to FCM.
8. Expense Reductions.
The investment adviser contractually agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. This reimbursement will remain in place through December 31, 2016. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| | Expense
Limitations | Reimbursement |
| Class A | 1.45% | $24,783 |
| Class T | 1.70% | 20,810 |
| Class B | 2.20% | 756 |
| Class C | 2.20% | 13,825 |
| Class I | 1.20% | 13,586 |
| | | $73,760 |
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $990 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $5.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund level operating expenses in the amount of $524.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| From net realized gain | | |
| Class A | $232,217 | $– |
| Class T | 141,812 | – |
| Class B | 5,345 | – |
| Class C | 134,701 | – |
| Class I | 319,764 | – |
| Total | $833,839 | $– |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| Class A | | | | |
| Shares sold | 246,810 | 1,624,998 | $3,728,112 | $27,021,428 |
| Reinvestment of distributions | 14,077 | – | 225,941 | – |
| Shares redeemed | (259,211) | (1,379,091) | (3,890,585) | (22,009,282) |
| Net increase (decrease) | 1,676 | 245,907 | $63,468 | $5,012,146 |
| Class T | | | | |
| Shares sold | 99,564 | 370,447 | $1,479,015 | $5,817,431 |
| Reinvestment of distributions | 9,033 | – | 139,646 | – |
| Shares redeemed | (206,046) | (219,006) | (2,936,172) | (3,388,077) |
| Net increase (decrease) | (97,449) | 151,441 | $(1,317,511) | $2,429,354 |
| Class B | | | | |
| Shares sold | 179 | 8,363 | $2,344 | $124,801 |
| Reinvestment of distributions | 351 | – | 5,016 | – |
| Shares redeemed | (16,620) | (35,011) | (220,477) | (502,734) |
| Net increase (decrease) | (16,090) | (26,648) | $(213,117) | $(377,933) |
| Class C | | | | |
| Shares sold | 109,969 | 572,578 | $1,489,253 | $8,431,576 |
| Reinvestment of distributions | 8,899 | – | 126,727 | – |
| Shares redeemed | (143,970) | (219,967) | (1,921,940) | (3,119,457) |
| Net increase (decrease) | (25,102) | 352,611 | $(305,960) | $5,312,119 |
| Class I | | | | |
| Shares sold | 262,748 | 1,401,232 | $4,181,938 | $23,612,800 |
| Reinvestment of distributions | 18,757 | – | 313,609 | – |
| Shares redeemed | (352,690) | (288,809) | (5,630,328) | (4,841,280) |
| Net increase (decrease) | (71,185) | 1,112,423 | $(1,134,781) | $18,771,520 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, Strategic Advisers International II Fund was the owner of record of approximately 17% of the total outstanding shares of the Fund.
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, 2015 to April 30, 2016).
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.
| | Annualized Expense Ratio-A | Beginning
Account Value
November 1, 2015 | Ending
Account Value
April 30, 2016 | Expenses Paid
During Period-B
November 1, 2015
to April 30, 2016 |
| Class A | 1.45% | | | |
| Actual | | $1,000.00 | $987.80 | $7.17 |
| Hypothetical-C | | $1,000.00 | $1,017.65 | $7.27 |
| Class T | 1.70% | | | |
| Actual | | $1,000.00 | $986.70 | $8.40 |
| Hypothetical-C | | $1,000.00 | $1,016.41 | $8.52 |
| Class B | 2.20% | | | |
| Actual | | $1,000.00 | $984.20 | $10.85 |
| Hypothetical-C | | $1,000.00 | $1,013.92 | $11.02 |
| Class C | 2.20% | | | |
| Actual | | $1,000.00 | $984.20 | $10.85 |
| Hypothetical-C | | $1,000.00 | $1,013.92 | $11.02 |
| Class I | 1.20% | | | |
| Actual | | $1,000.00 | $988.90 | $5.93 |
| Hypothetical-C | | $1,000.00 | $1,018.90 | $6.02 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
C 5% return per year before expenses
AGLOI-SANN-0616
1.719690.117
Fidelity Advisor® Diversified International Fund
Class A, Class T, Class B and Class C
Semi-Annual Report April 30, 2016 |
|
Contents
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. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Five Stocks as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Novo Nordisk A/S Series B (Denmark, Pharmaceuticals) | 2.1 | 1.9 |
| Bayer AG (Germany, Pharmaceuticals) | 1.8 | 1.5 |
| ORIX Corp. (Japan, Diversified Financial Services) | 1.8 | 1.8 |
| Anheuser-Busch InBev SA NV (Belgium, Beverages) | 1.7 | 1.6 |
| Hoya Corp. (Japan, Health Care Equipment & Supplies) | 1.4 | 1.4 |
| | 8.8 | |
Top Five Market Sectors as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Financials | 20.6 | 21.4 |
| Health Care | 17.6 | 17.4 |
| Consumer Discretionary | 14.9 | 16.1 |
| Consumer Staples | 14.5 | 12.3 |
| Information Technology | 13.2 | 12.3 |
Top Five Countries as of April 30, 2016
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| United Kingdom | 15.0 | 18.2 |
| Japan | 14.1 | 14.5 |
| United States of America | 8.5 | 7.3 |
| Germany | 8.5 | 7.6 |
| Switzerland | 4.8 | 4.7 |
Percentages are adjusted for the effect of futures contracts, if applicable.
Asset Allocation (% of fund's net assets)
| As of April 30, 2016 |
| | Stocks and Equity Futures | 97.3% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 2.7% |
| As of October 31, 2015 |
| | Stocks and Equity Futures | 95.2% |
| | Other Investments | 0.1% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 4.7% |
Investments April 30, 2016 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 95.3% | | | |
| | | Shares | Value (000s) |
| Australia - 1.1% | | | |
| Ansell Ltd. (a) | | 258,534 | $3,918 |
| Australia & New Zealand Banking Group Ltd. | | 459,310 | 8,419 |
| CSL Ltd. | | 18,683 | 1,494 |
| Magellan Financial Group Ltd. | | 289,293 | 4,729 |
| Ramsay Health Care Ltd. | | 82,294 | 4,064 |
|
| TOTAL AUSTRALIA | | | 22,624 |
|
| Austria - 0.3% | | | |
| Andritz AG | | 65,400 | 3,663 |
| Zumtobel AG | | 174,600 | 2,273 |
|
| TOTAL AUSTRIA | | | 5,936 |
|
| Bailiwick of Jersey - 2.0% | | | |
| Integrated Diagnostics Holdings PLC | | 164,400 | 764 |
| Sanne Group PLC | | 333,100 | 2,148 |
| Shire PLC | | 229,800 | 14,340 |
| Wolseley PLC | | 226,863 | 12,707 |
| WPP PLC | | 435,324 | 10,170 |
|
| TOTAL BAILIWICK OF JERSEY | | | 40,129 |
|
| Belgium - 2.4% | | | |
| Anheuser-Busch InBev SA NV | | 267,831 | 33,152 |
| KBC Groep NV | | 265,798 | 14,922 |
|
| TOTAL BELGIUM | | | 48,074 |
|
| Canada - 4.2% | | | |
| Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | | 411,200 | 18,025 |
| AutoCanada, Inc. | | 122,300 | 2,001 |
| Canadian Energy Services & Technology Corp. | | 2,653,100 | 8,099 |
| Cenovus Energy, Inc. | | 235,800 | 3,738 |
| CGI Group, Inc. Class A (sub. vtg.) (a) | | 299,500 | 13,682 |
| Constellation Software, Inc. | | 22,400 | 8,754 |
| Fairfax India Holdings Corp. (a) | | 494,000 | 5,483 |
| Imperial Oil Ltd. | | 149,400 | 4,955 |
| Keyera Corp. (b) | | 98,200 | 3,163 |
| PrairieSky Royalty Ltd. | | 81,669 | 1,720 |
| Suncor Energy, Inc. | | 318,900 | 9,361 |
| Tourmaline Oil Corp.(a) | | 199,800 | 4,608 |
|
| TOTAL CANADA | | | 83,589 |
|
| Cayman Islands - 1.0% | | | |
| 58.com, Inc. ADR (a) | | 43,400 | 2,372 |
| Alibaba Group Holding Ltd. sponsored ADR (a) | | 200,800 | 15,450 |
| Lee's Pharmaceutical Holdings Ltd. | | 1,208,500 | 978 |
| Regina Miracle International Holdings Ltd. (a) | | 1,136,558 | 1,725 |
|
| TOTAL CAYMAN ISLANDS | | | 20,525 |
|
| China - 0.7% | | | |
| Inner Mongoli Yili Industries Co. Ltd. | | 497,608 | 1,155 |
| Kweichow Moutai Co. Ltd. | | 175,010 | 6,791 |
| Qingdao Haier Co. Ltd. | | 3,912,122 | 5,034 |
| Weifu High-Technology Co. Ltd. (B Shares) | | 239,500 | 506 |
|
| TOTAL CHINA | | | 13,486 |
|
| Curacao - 0.8% | | | |
| Schlumberger Ltd. | | 196,900 | 15,819 |
| Denmark - 2.9% | | | |
| Genmab A/S (a) | | 86,700 | 12,846 |
| NNIT A/S | | 139,682 | 3,804 |
| Novo Nordisk A/S Series B | | 740,740 | 41,354 |
|
| TOTAL DENMARK | | | 58,004 |
|
| Finland - 0.3% | | | |
| Sampo Oyj (A Shares) | | 113,300 | 4,947 |
| France - 4.3% | | | |
| Accor SA (b) | | 216,069 | 9,571 |
| Air Liquide SA | | 22,860 | 2,593 |
| ALTEN | | 36,200 | 2,238 |
| Amundi SA | | 199,404 | 9,176 |
| AXA SA | | 475,000 | 11,994 |
| Capgemini SA | | 46,900 | 4,378 |
| Danone SA | | 111,747 | 7,829 |
| Publicis Groupe SA | | 56,310 | 4,167 |
| Sanofi SA | | 317,468 | 26,168 |
| VINCI SA | | 55,200 | 4,124 |
| Worldline SA (a)(c) | | 124,824 | 3,496 |
|
| TOTAL FRANCE | | | 85,734 |
|
| Germany - 7.4% | | | |
| adidas AG | | 107,890 | 13,911 |
| Axel Springer Verlag AG | | 42,100 | 2,351 |
| Bayer AG | | 315,252 | 36,369 |
| Brenntag AG | | 75,600 | 4,433 |
| Continental AG | | 44,700 | 9,817 |
| Deutsche Boerse AG | | 44,000 | 3,612 |
| Deutsche Post AG | | 64,027 | 1,881 |
| Fresenius SE & Co. KGaA | | 349,300 | 25,406 |
| KION Group AG | | 108,500 | 5,911 |
| Nexus AG | | 95,900 | 1,680 |
| ProSiebenSat.1 Media AG | | 247,900 | 12,637 |
| Rational AG | | 1,000 | 508 |
| SAP AG | | 256,389 | 20,117 |
| Symrise AG | | 116,900 | 7,745 |
|
| TOTAL GERMANY | | | 146,378 |
|
| Hong Kong - 2.0% | | | |
| AIA Group Ltd. | | 4,732,000 | 28,319 |
| China Resources Beer Holdings Co. Ltd. | | 1,530,000 | 3,362 |
| Hang Seng Bank Ltd. | | 139,800 | 2,535 |
| Techtronic Industries Co. Ltd. | | 1,559,500 | 5,846 |
|
| TOTAL HONG KONG | | | 40,062 |
|
| India - 3.2% | | | |
| Apollo Hospitals Enterprise Ltd. | | 149,447 | 2,952 |
| Axis Bank Ltd. (a) | | 563,244 | 4,006 |
| Bharti Infratel Ltd. | | 1,488,127 | 8,400 |
| Edelweiss Financial Services Ltd. | | 2,655,200 | 2,320 |
| Exide Industries Ltd. (a) | | 1,136,771 | 2,520 |
| HCL Technologies Ltd. | | 325,087 | 3,672 |
| HDFC Bank Ltd. (a) | | 793,748 | 16,134 |
| Housing Development Finance Corp. Ltd. | | 724,211 | 11,867 |
| ITC Ltd. | | 1,552,545 | 7,595 |
| LIC Housing Finance Ltd. (a) | | 274,208 | 1,908 |
| Pidilite Industries Ltd. (a) | | 241,934 | 2,196 |
|
| TOTAL INDIA | | | 63,570 |
|
| Indonesia - 0.5% | | | |
| PT Bank Central Asia Tbk | | 4,553,100 | 4,505 |
| PT Bank Rakyat Indonesia Tbk | | 6,393,400 | 5,018 |
|
| TOTAL INDONESIA | | | 9,523 |
|
| Ireland - 3.2% | | | |
| Allergan PLC (a) | | 62,800 | 13,600 |
| DCC PLC (United Kingdom) | | 71,500 | 6,331 |
| Greencore Group PLC | | 919,621 | 4,848 |
| Horizon Pharma PLC (a) | | 218,400 | 3,357 |
| Kerry Group PLC Class A | | 94,800 | 8,453 |
| Medtronic PLC | | 132,300 | 10,472 |
| Ryanair Holdings PLC sponsored ADR | | 194,360 | 15,733 |
|
| TOTAL IRELAND | | | 62,794 |
|
| Isle of Man - 0.6% | | | |
| Optimal Payments PLC (a) | | 1,284,533 | 7,155 |
| Playtech Ltd. | | 483,525 | 5,684 |
|
| TOTAL ISLE OF MAN | | | 12,839 |
|
| Israel - 2.6% | | | |
| Cellcom Israel Ltd. (Israel) (a) | | 486,900 | 3,654 |
| Check Point Software Technologies Ltd. (a) | | 132,000 | 10,939 |
| Frutarom Industries Ltd. | | 132,000 | 6,765 |
| Partner Communications Co. Ltd. (a) | | 162,104 | 843 |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | | 523,200 | 28,488 |
|
| TOTAL ISRAEL | | | 50,689 |
|
| Italy - 0.7% | | | |
| Intesa Sanpaolo SpA | | 3,417,900 | 9,501 |
| Mediaset SpA | | 769,000 | 3,461 |
|
| TOTAL ITALY | | | 12,962 |
|
| Japan - 14.1% | | | |
| Ain Holdings, Inc. | | 77,700 | 3,775 |
| Astellas Pharma, Inc. | | 1,346,700 | 18,157 |
| Casio Computer Co. Ltd. (b) | | 228,500 | 4,348 |
| Daiichikosho Co. Ltd. | | 74,400 | 3,119 |
| Dentsu, Inc. | | 169,600 | 8,617 |
| Don Quijote Holdings Co. Ltd. | | 177,700 | 6,322 |
| Fast Retailing Co. Ltd. | | 9,200 | 2,422 |
| Glory Ltd. (d) | | 58,800 | 1,926 |
| Hoya Corp. | | 747,400 | 28,621 |
| Japan Exchange Group, Inc. | | 632,300 | 9,417 |
| Japan Tobacco, Inc. | | 474,200 | 19,375 |
| KDDI Corp. | | 607,800 | 17,508 |
| Keyence Corp. | | 37,400 | 22,417 |
| Kubota Corp. | | 71,800 | 1,046 |
| Minebea Mitsumi, Inc. | | 250,000 | 2,048 |
| Misumi Group, Inc. | | 194,300 | 2,683 |
| Mitsubishi UFJ Financial Group, Inc. | | 2,220,800 | 10,249 |
| NGK Spark Plug Co. Ltd. | | 139,300 | 2,778 |
| Nippon Paint Holdings Co. Ltd. | | 42,500 | 1,116 |
| Nitori Holdings Co. Ltd. | | 84,100 | 7,823 |
| NOF Corp. | | 282,000 | 2,220 |
| Olympus Corp. | | 211,100 | 8,224 |
| ORIX Corp. | | 2,507,100 | 35,463 |
| Rakuten, Inc. | | 864,500 | 9,398 |
| Seven & i Holdings Co. Ltd. | | 240,700 | 9,821 |
| SHIMANO, Inc. | | 53,500 | 7,676 |
| Shinsei Bank Ltd. | | 2,310,000 | 3,238 |
| SoftBank Corp. | | 154,300 | 8,297 |
| Suzuki Motor Corp. | | 141,400 | 3,875 |
| Tsuruha Holdings, Inc. | | 141,100 | 13,534 |
| Welcia Holdings Co. Ltd. | | 58,200 | 3,074 |
|
| TOTAL JAPAN | | | 278,587 |
|
| Korea (South) - 0.2% | | | |
| Orion Corp. | | 5,836 | 4,737 |
| Luxembourg - 0.7% | | | |
| Eurofins Scientific SA | | 36,500 | 13,543 |
| Netherlands - 4.0% | | | |
| AerCap Holdings NV (a) | | 162,700 | 6,510 |
| Altice NV: | | | |
| Class A (a) | | 837,674 | 12,709 |
| Class B (a) | | 282,992 | 4,324 |
| Gree Electric Appliances, Inc. of Zhuhai ELS (BNP Paribas Warrants Program) (A Shares)warrants 11/24/16 (a)(c) | | 144,800 | 430 |
| IMCD Group BV | | 135,500 | 5,471 |
| ING Groep NV (Certificaten Van Aandelen) | | 862,600 | 10,564 |
| NXP Semiconductors NV (a) | | 85,900 | 7,326 |
| RELX NV | | 691,942 | 11,611 |
| Unilever NV (Certificaten Van Aandelen) (Bearer) | | 478,600 | 21,025 |
|
| TOTAL NETHERLANDS | | | 79,970 |
|
| New Zealand - 0.1% | | | |
| Ryman Healthcare Group Ltd. | | 252,900 | 1,577 |
| Norway - 0.4% | | | |
| Statoil ASA | | 479,000 | 8,431 |
| Philippines - 0.2% | | | |
| Alliance Global Group, Inc. | | 12,852,154 | 3,962 |
| Singapore - 0.6% | | | |
| Broadcom Ltd. | | 39,500 | 5,757 |
| United Overseas Bank Ltd. | | 414,700 | 5,736 |
|
| TOTAL SINGAPORE | | | 11,493 |
|
| South Africa - 1.1% | | | |
| EOH Holdings Ltd. | | 427,200 | 4,158 |
| Naspers Ltd. Class N (d) | | 134,900 | 18,510 |
|
| TOTAL SOUTH AFRICA | | | 22,668 |
|
| Spain - 2.0% | | | |
| Amadeus IT Holding SA Class A | | 338,700 | 15,412 |
| Hispania Activos Inmobiliarios SA (a) | | 207,200 | 3,037 |
| Inditex SA | | 633,569 | 20,339 |
| Telepizza Group SAU | | 207,200 | 1,459 |
|
| TOTAL SPAIN | | | 40,247 |
|
| Sweden - 2.5% | | | |
| ASSA ABLOY AB (B Shares) | | 424,800 | 8,908 |
| Coor Service Management Holding AB | | 445,200 | 2,107 |
| HEXPOL AB (B Shares) (b) | | 146,900 | 1,518 |
| Nordea Bank AB | | 1,247,400 | 12,108 |
| Svenska Cellulosa AB (SCA) (B Shares) | | 571,900 | 18,011 |
| Svenska Handelsbanken AB (A Shares) (b) | | 560,400 | 7,476 |
|
| TOTAL SWEDEN | | | 50,128 |
|
| Switzerland - 4.8% | | | |
| Actelion Ltd. | | 58,435 | 9,442 |
| Compagnie Financiere Richemont SA Series A | | 51,033 | 3,403 |
| Credit Suisse Group AG | | 536,264 | 8,161 |
| GAM Holding Ltd. | | 84,407 | 1,100 |
| Julius Baer Group Ltd. | | 72,090 | 3,089 |
| Partners Group Holding AG | | 15,240 | 6,275 |
| Roche Holding AG (participation certificate) | | 59,287 | 15,000 |
| Sika AG | | 2,320 | 9,874 |
| Syngenta AG (Switzerland) | | 63,418 | 25,386 |
| UBS Group AG | | 784,733 | 13,579 |
|
| TOTAL SWITZERLAND | | | 95,309 |
|
| Taiwan - 1.1% | | | |
| Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | | 904,700 | 21,342 |
| Thailand - 0.2% | | | |
| Kasikornbank PCL (For. Reg.) | | 817,800 | 3,911 |
| United Kingdom - 15.0% | | | |
| AA PLC | | 502,320 | 2,045 |
| Associated British Foods PLC | | 157,700 | 7,060 |
| B&M European Value Retail S.A. | | 2,403,811 | 9,743 |
| British American Tobacco PLC sponsored ADR | | 75,500 | 9,222 |
| BT Group PLC | | 2,003,100 | 12,984 |
| Bunzl PLC | | 175,700 | 5,235 |
| Capita Group PLC | | 266,100 | 3,892 |
| Compass Group PLC | | 572,700 | 10,199 |
| Dignity PLC | | 17,100 | 610 |
| Diploma PLC | | 401,600 | 4,292 |
| Essentra PLC | | 1,189,500 | 14,113 |
| Halma PLC | | 119,100 | 1,552 |
| Howden Joinery Group PLC | | 548,200 | 3,957 |
| IMI PLC | | 164,400 | 2,246 |
| Imperial Tobacco Group PLC | | 255,232 | 13,867 |
| Indivior PLC | | 864,100 | 2,030 |
| ITV PLC | | 3,882,500 | 12,775 |
| Liberty Global PLC: | | | |
| Class A (a) | | 143,600 | 5,418 |
| Class C (a) | | 61,400 | 2,247 |
| Lloyds Banking Group PLC | | 27,782,700 | 27,269 |
| London Stock Exchange Group PLC | | 233,000 | 9,236 |
| Micro Focus International PLC | | 538,200 | 12,024 |
| Melrose Industries PLC | | 359,842 | 1,963 |
| Next PLC | | 163,200 | 12,126 |
| Poundland Group PLC | | 1,394,767 | 3,505 |
| Prudential PLC | | 1,189,532 | 23,481 |
| Reckitt Benckiser Group PLC | | 186,513 | 18,170 |
| Rio Tinto PLC | | 59,500 | 1,996 |
| Rolls-Royce Group PLC | | 735,400 | 7,194 |
| SABMiller PLC | | 183,500 | 11,221 |
| Schroders PLC | | 132,100 | 4,852 |
| Softcat PLC | | 490,700 | 2,287 |
| Sophos Group PLC | | 532,566 | 1,598 |
| Spectris PLC | | 150,900 | 4,015 |
| St. James's Place Capital PLC | | 1,188,700 | 15,059 |
| The Restaurant Group PLC | | 571,100 | 2,296 |
| Virgin Money Holdings Uk PLC | | 989,500 | 5,279 |
| Whitbread PLC | | 167,233 | 9,461 |
|
| TOTAL UNITED KINGDOM | | | 296,519 |
|
| United States of America - 8.1% | | | |
| Alphabet, Inc.: | | | |
| Class A | | 10,195 | 7,217 |
| Class C | | 19,149 | 13,270 |
| Amgen, Inc. | | 65,300 | 10,337 |
| Baxalta, Inc. | | 122,500 | 5,139 |
| Celgene Corp. (a) | | 66,400 | 6,866 |
| Coach, Inc. | | 48,700 | 1,961 |
| Cognizant Technology Solutions Corp. Class A (a) | | 98,700 | 5,761 |
| Coty, Inc. Class A (b) | | 306,400 | 9,315 |
| Fidelity National Information Services, Inc. | | 47,800 | 3,145 |
| Las Vegas Sands Corp. | | 179,800 | 8,118 |
| MasterCard, Inc. Class A | | 148,600 | 14,413 |
| McGraw Hill Financial, Inc. | | 206,500 | 22,065 |
| Mead Johnson Nutrition Co. Class A | | 23,500 | 2,048 |
| Molson Coors Brewing Co. Class B | | 59,900 | 5,728 |
| MSCI, Inc. Class A | | 27,500 | 2,088 |
| NJOY, Inc. (a)(e) | | 725,849 | 93 |
| Noble Energy, Inc. | | 88,700 | 3,203 |
| Oceaneering International, Inc. | | 114,100 | 4,182 |
| Phillips 66 Co. | | 51,100 | 4,196 |
| Qualcomm, Inc. | | 159,600 | 8,063 |
| Spectrum Brands Holdings, Inc. | | 23,700 | 2,692 |
| Verisk Analytics, Inc. (a) | | 25,800 | 2,002 |
| Visa, Inc. Class A | | 198,900 | 15,363 |
| Western Digital Corp. | | 64,700 | 2,644 |
|
| TOTAL UNITED STATES OF AMERICA | | | 159,909 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $1,608,687) | | | 1,890,017 |
|
| Nonconvertible Preferred Stocks - 1.6% | | | |
| Brazil - 0.5% | | | |
| Itau Unibanco Holding SA | | 1,027,300 | 9,818 |
| Germany - 1.1% | | | |
| Henkel AG & Co. KGaA | | 178,800 | 20,408 |
| Jungheinrich AG | | 12,800 | 1,207 |
|
| TOTAL GERMANY | | | 21,615 |
|
| United Kingdom - 0.0% | | | |
| Rolls-Royce Group PLC | | 52,213,400 | 76 |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | | | |
| (Cost $25,429) | | | 31,509 |
| | | Principal Amount (000s) | Value (000s) |
|
| Government Obligations - 0.0% | | | |
| United States of America - 0.0% | | | |
| U.S. Treasury Bills, yield at date of purchase 0.25% to 0.33% 5/26/16 to 7/28/16(f) | | | |
| (Cost $520) | | $520 | 520 |
| | | Shares | Value (000s) |
|
| Money Market Funds - 3.9% | | | |
| Fidelity Cash Central Fund, 0.38% (g) | | 51,741,019 | 51,741 |
| Fidelity Securities Lending Cash Central Fund, 0.42% (g)(h) | | 24,789,142 | 24,789 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $76,530) | | | 76,530 |
| TOTAL INVESTMENT PORTFOLIO - 100.8% | | | |
| (Cost $1,711,166) | | | 1,998,576 |
| NET OTHER ASSETS (LIABILITIES) - (0.8)% | | | (16,604) |
| NET ASSETS - 100% | | | $1,981,972 |
| Futures Contracts | | | |
| | Expiration Date | Underlying Face Amount at Value (000s) | Unrealized Appreciation/(Depreciation) (000s) |
| Purchased | | | |
| Equity Index Contracts | | | |
| 97 CME Nikkei 225 Index Contracts (United States) | June 2016 | 7,724 | $(527) |
The face value of futures purchased as a percentage of Net Assets is 0.4%
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $3,926,000 or 0.2% of net assets.
(d) A portion of the security sold on a delayed delivery basis.
(e) 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 $93,000 or 0.0% of net assets.
(f) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $520,000.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost (000s) |
| NJOY, Inc. | 6/7/13 - 2/14/14 | $808 |
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 | $120 |
| Fidelity Securities Lending Cash Central Fund | 143 |
| Total | $263 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2016, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | | | | |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Consumer Discretionary | $297,004 | $205,023 | $91,888 | $93 |
| Consumer Staples | 284,293 | 205,353 | 78,940 | -- |
| Energy | 71,475 | 63,044 | 8,431 | -- |
| Financials | 410,280 | 205,105 | 205,175 | -- |
| Health Care | 350,990 | 198,148 | 152,842 | -- |
| Industrials | 120,332 | 98,041 | 22,291 | -- |
| Information Technology | 259,944 | 217,410 | 42,534 | -- |
| Materials | 75,522 | 67,597 | 7,925 | -- |
| Telecommunication Services | 51,686 | 12,897 | 38,789 | -- |
| Government Obligations | 520 | -- | 520 | -- |
| Money Market Funds | 76,530 | 76,530 | -- | -- |
| Total Investments in Securities: | $1,998,576 | $1,349,148 | $649,335 | $93 |
| Derivative Instruments: | | | | |
| Liabilities | | | | |
| Futures Contracts | $(527) | $(527) | $-- | $-- |
| Total Liabilities | $(527) | $(527) | $-- | $-- |
| Total Derivative Instruments: | $(527) | $(527) | $-- | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2016. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
| Transfers | Total (000s) |
| Level 1 to Level 2 | $26,947 |
| Level 2 to Level 1 | $200,408 |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of April 30, 2016. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
| Primary Risk Exposure / Derivative Type | Value |
| (Amounts in thousands) | Asset | Liability |
| Equity Risk | | |
| Futures Contracts(a) | $0 | $(527) |
| Total Equity Risk | 0 | (527) |
| Total Value of Derivatives | $0 | $(527) |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin for derivative instruments, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | | April 30, 2016 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $23,407) — See accompanying schedule:
Unaffiliated issuers (cost $1,634,636) | $1,922,046 | |
| Fidelity Central Funds (cost $76,530) | 76,530 | |
| Total Investments (cost $1,711,166) | | $1,998,576 |
| Foreign currency held at value (cost $293) | | 293 |
| Receivable for investments sold | | |
| Regular delivery | | 5,501 |
| Delayed delivery | | 508 |
| Receivable for fund shares sold | | 1,748 |
| Dividends receivable | | 10,340 |
| Distributions receivable from Fidelity Central Funds | | 78 |
| Prepaid expenses | | 1 |
| Other receivables | | 198 |
| Total assets | | 2,017,243 |
| Liabilities | | |
| Payable for investments purchased | $5,254 | |
| Payable for fund shares redeemed | 2,844 | |
| Accrued management fee | 1,126 | |
| Distribution and service plan fees payable | 431 | |
| Payable for daily variation margin for derivative instruments | 199 | |
| Other affiliated payables | 424 | |
| Other payables and accrued expenses | 204 | |
| Collateral on securities loaned, at value | 24,789 | |
| Total liabilities | | 35,271 |
| Net Assets | | $1,981,972 |
| Net Assets consist of: | | |
| Paid in capital | | $4,321,905 |
| Undistributed net investment income | | 9,333 |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (2,636,280) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 287,014 |
| Net Assets | | $1,981,972 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($616,707 ÷ 32,029.5 shares) | | $19.25 |
| Maximum offering price per share (100/94.25 of $19.25) | | $20.42 |
| Class T: | | |
| Net Asset Value and redemption price per share ($246,458 ÷ 12,895.7 shares) | | $19.11 |
| Maximum offering price per share (100/96.50 of $19.11) | | $19.80 |
| Class B: | | |
| Net Asset Value and offering price per share ($7,411 ÷ 399.8 shares)(a) | | $18.54 |
| Class C: | | |
| Net Asset Value and offering price per share ($228,358 ÷ 12,393.1 shares)(a) | | $18.43 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($794,709 ÷ 40,606.7 shares) | | $19.57 |
| Class Z: | | |
| Net Asset Value, offering price and redemption price per share ($88,329 ÷ 4,515.7 shares) | | $19.56 |
(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.
Statement of Operations
| Amounts in thousands | | Six months ended April 30, 2016 (Unaudited) |
| Investment Income | | |
| Dividends | | $23,035 |
| Interest | | 4 |
| Income from Fidelity Central Funds | | 263 |
| Income before foreign taxes withheld | | 23,302 |
| Less foreign taxes withheld | | (1,688) |
| Total income | | 21,614 |
| Expenses | | |
| Management fee | $6,583 | |
| Transfer agent fees | 2,108 | |
| Distribution and service plan fees | 2,613 | |
| Accounting and security lending fees | 432 | |
| Custodian fees and expenses | 116 | |
| Independent trustees' compensation | 4 | |
| Registration fees | 106 | |
| Audit | 60 | |
| Legal | 6 | |
| Miscellaneous | 5 | |
| Total expenses before reductions | 12,033 | |
| Expense reductions | (21) | 12,012 |
| Net investment income (loss) | | 9,602 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (12,719) | |
| Foreign currency transactions | 176 | |
| Futures contracts | (468) | |
| Total net realized gain (loss) | | (13,011) |
Change in net unrealized appreciation (depreciation) on:
Investment securities (net of increase in deferred foreign taxes of $21) | (66,550) | |
| Assets and liabilities in foreign currencies | 113 | |
| Futures contracts | (966) | |
| Total change in net unrealized appreciation (depreciation) | | (67,403) |
| Net gain (loss) | | (80,414) |
| Net increase (decrease) in net assets resulting from operations | | $(70,812) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Six months ended April 30, 2016 (Unaudited) | Year ended October 31, 2015 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $9,602 | $14,320 |
| Net realized gain (loss) | (13,011) | 39,040 |
| Change in net unrealized appreciation (depreciation) | (67,403) | 18,118 |
| Net increase (decrease) in net assets resulting from operations | (70,812) | 71,478 |
| Distributions to shareholders from net investment income | (12,902) | (18,738) |
| Distributions to shareholders from net realized gain | – | (2,141) |
| Total distributions | (12,902) | (20,879) |
| Share transactions - net increase (decrease) | 40,304 | 63,265 |
| Redemption fees | 14 | 27 |
| Total increase (decrease) in net assets | (43,396) | 113,891 |
| Net Assets | | |
| Beginning of period | 2,025,368 | 1,911,477 |
| End of period (including undistributed net investment income of $9,333 and undistributed net investment income of $12,633, respectively) | $1,981,972 | $2,025,368 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Diversified International Fund Class A
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.10 | $19.56 | $19.47 | $15.63 | $14.61 | $15.63 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .09 | .15 | .27B | .19 | .18 | .22C |
| Net realized and unrealized gain (loss) | (.81) | .61 | .17 | 3.92 | 1.03 | (1.01) |
| Total from investment operations | (.72) | .76 | .44 | 4.11 | 1.21 | (.79) |
| Distributions from net investment income | (.13) | (.20) | (.18) | (.21) | (.19) | (.20) |
| Distributions from net realized gain | – | (.02) | (.17) | (.06) | – | (.03) |
| Total distributions | (.13) | (.22) | (.35) | (.27) | (.19) | (.23) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – | – |
| Net asset value, end of period | $19.25 | $20.10 | $19.56 | $19.47 | $15.63 | $14.61 |
| Total ReturnE,F,G | (3.62)% | 3.93% | 2.28% | 26.69% | 8.47% | (5.15)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.23%J | 1.22% | 1.26% | 1.31% | 1.32% | 1.31% |
| Expenses net of fee waivers, if any | 1.23%J | 1.22% | 1.26% | 1.30% | 1.32% | 1.31% |
| Expenses net of all reductions | 1.23%J | 1.21% | 1.26% | 1.28% | 1.31% | 1.29% |
| Net investment income (loss) | .98%J | .75% | 1.34%B | 1.08% | 1.20% | 1.38%C |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $617 | $662 | $693 | $756 | $762 | $916 |
| Portfolio turnover rateK | 24%J | 34% | 40% | 50% | 34% | 48% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .85%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .98%.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Diversified International Fund Class T
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $19.92 | $19.38 | $19.30 | $15.49 | $14.46 | $15.47 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .07 | .10 | .21B | .14 | .14 | .18C |
| Net realized and unrealized gain (loss) | (.81) | .61 | .18 | 3.89 | 1.03 | (.99) |
| Total from investment operations | (.74) | .71 | .39 | 4.03 | 1.17 | (.81) |
| Distributions from net investment income | (.07) | (.15) | (.14) | (.16) | (.14) | (.16) |
| Distributions from net realized gain | – | (.02) | (.17) | (.06) | – | (.03) |
| Total distributions | (.07) | (.17) | (.31) | (.22) | (.14) | (.20)D |
| Redemption fees added to paid in capitalA,E | – | – | – | – | – | – |
| Net asset value, end of period | $19.11 | $19.92 | $19.38 | $19.30 | $15.49 | $14.46 |
| Total ReturnF,G,H | (3.73)% | 3.67% | 2.04% | 26.37% | 8.17% | (5.35)% |
| Ratios to Average Net AssetsI,J | | | | | | |
| Expenses before reductions | 1.49%K | 1.48% | 1.51% | 1.55% | 1.58% | 1.55% |
| Expenses net of fee waivers, if any | 1.49%K | 1.48% | 1.51% | 1.55% | 1.58% | 1.55% |
| Expenses net of all reductions | 1.49%K | 1.47% | 1.51% | 1.53% | 1.57% | 1.53% |
| Net investment income (loss) | .72%K | .49% | 1.09%B | .83% | .94% | 1.14%C |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $246 | $271 | $284 | $319 | $304 | $404 |
| Portfolio turnover rateL | 24%K | 34% | 40% | 50% | 34% | 48% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .60%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .74%.
D 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.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the sales charges.
I 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.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Diversified International Fund Class B
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $19.31 | $18.75 | $18.65 | $14.95 | $13.91 | $14.91 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .01 | (.01) | .10B | .05 | .06 | .09C |
| Net realized and unrealized gain (loss) | (.78) | .59 | .17 | 3.77 | 1.00 | (.96) |
| Total from investment operations | (.77) | .58 | .27 | 3.82 | 1.06 | (.87) |
| Distributions from net investment income | – | – | – | (.06) | (.02) | (.10) |
| Distributions from net realized gain | – | (.02) | (.17) | (.06) | – | (.03) |
| Total distributions | – | (.02) | (.17) | (.12) | (.02) | (.13) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – | – |
| Net asset value, end of period | $18.54 | $19.31 | $18.75 | $18.65 | $14.95 | $13.91 |
| Total ReturnE,F,G | (3.99)% | 3.11% | 1.45% | 25.72% | 7.64% | (5.89)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 2.05%J | 2.05% | 2.07% | 2.08% | 2.08% | 2.08% |
| Expenses net of fee waivers, if any | 2.05%J | 2.05% | 2.07% | 2.08% | 2.08% | 2.08% |
| Expenses net of all reductions | 2.05%J | 2.04% | 2.07% | 2.06% | 2.07% | 2.06% |
| Net investment income (loss) | .16%J | (.08)% | .53%B | .30% | .44% | .61%C |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $7 | $11 | $19 | $36 | $59 | $94 |
| Portfolio turnover rateK | 24%J | 34% | 40% | 50% | 34% | 48% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .04%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .21%.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Diversified International Fund Class C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $19.19 | $18.68 | $18.63 | $14.97 | $13.95 | $14.95 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .02 | – | .11B | .06 | .06 | .10C |
| Net realized and unrealized gain (loss) | (.78) | .59 | .18 | 3.75 | 1.01 | (.96) |
| Total from investment operations | (.76) | .59 | .29 | 3.81 | 1.07 | (.86) |
| Distributions from net investment income | – | (.06) | (.07) | (.09) | (.05) | (.11) |
| Distributions from net realized gain | – | (.02) | (.17) | (.06) | – | (.03) |
| Total distributions | – | (.08) | (.24) | (.15) | (.05) | (.14) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – | – |
| Net asset value, end of period | $18.43 | $19.19 | $18.68 | $18.63 | $14.97 | $13.95 |
| Total ReturnE,F,G | (3.96)% | 3.15% | 1.58% | 25.71% | 7.71% | (5.83)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.98%J | 1.97% | 2.00% | 2.04% | 2.06% | 2.05% |
| Expenses net of fee waivers, if any | 1.98%J | 1.97% | 2.00% | 2.04% | 2.06% | 2.05% |
| Expenses net of all reductions | 1.98%J | 1.96% | 2.00% | 2.01% | 2.05% | 2.03% |
| Net investment income (loss) | .23%J | - %K | .60%B | .35% | .46% | .64%C |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $228 | $251 | $243 | $264 | $246 | $302 |
| Portfolio turnover rateL | 24%J | 34% | 40% | 50% | 34% | 48% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .11%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .24%.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H 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.
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 Annualized
K Amount represents less than .005%.
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Diversified International Fund Class I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.46 | $19.91 | $19.80 | $15.90 | $14.87 | $15.90 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .12 | .21 | .33B | .24 | .23 | .28C |
| Net realized and unrealized gain (loss) | (.82) | .63 | .18 | 3.98 | 1.05 | (1.03) |
| Total from investment operations | (.70) | .84 | .51 | 4.22 | 1.28 | (.75) |
| Distributions from net investment income | (.19) | (.26) | (.23) | (.26) | (.25) | (.25) |
| Distributions from net realized gain | – | (.02) | (.17) | (.06) | – | (.03) |
| Total distributions | (.19) | (.29)D | (.40) | (.32) | (.25) | (.28) |
| Redemption fees added to paid in capitalA,E | – | – | – | – | – | – |
| Net asset value, end of period | $19.57 | $20.46 | $19.91 | $19.80 | $15.90 | $14.87 |
| Total ReturnF,G | (3.48)% | 4.24% | 2.60% | 27.03% | 8.83% | (4.85)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | .95%J | .94% | .97% | .99% | 1.00% | .99% |
| Expenses net of fee waivers, if any | .95%J | .94% | .97% | .99% | 1.00% | .99% |
| Expenses net of all reductions | .95%J | .94% | .97% | .97% | .99% | .97% |
| Net investment income (loss) | 1.26%J | 1.03% | 1.63%B | 1.39% | 1.52% | 1.70%C |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $795 | $747 | $648 | $636 | $546 | $723 |
| Portfolio turnover rateK | 24%J | 34% | 40% | 50% | 34% | 48% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.14%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.30%.
D Total distributions of $.29 per share is comprised of distributions from net investment income of $.263 and distributions from net realized gain of $.022 per share.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Diversified International Fund Class Z
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | |
| | 2016 | 2015 | 2014 | 2013 A |
| Selected Per–Share Data | | | | |
| Net asset value, beginning of period | $20.46 | $19.93 | $19.81 | $18.54 |
| Income from Investment Operations | | | | |
| Net investment income (loss)B | .14 | .24 | .36C | .03 |
| Net realized and unrealized gain (loss) | (.82) | .61 | .19 | 1.24 |
| Total from investment operations | (.68) | .85 | .55 | 1.27 |
| Distributions from net investment income | (.22) | (.30) | (.26) | – |
| Distributions from net realized gain | – | (.02) | (.17) | – |
| Total distributions | (.22) | (.32) | (.43) | – |
| Redemption fees added to paid in capitalB | –D | –D | –D | – |
| Net asset value, end of period | $19.56 | $20.46 | $19.93 | $19.81 |
| Total ReturnE,F | (3.38)% | 4.34% | 2.81% | 6.85% |
| Ratios to Average Net AssetsG,H | | | | |
| Expenses before reductions | .79%I | .79% | .81% | .83%I |
| Expenses net of fee waivers, if any | .79%I | .79% | .81% | .83%I |
| Expenses net of all reductions | .79%I | .78% | .81% | .80%I |
| Net investment income (loss) | 1.42%I | 1.18% | 1.79%C | .77%I |
| Supplemental Data | | | | |
| Net assets, end of period (000 omitted) | $88,329 | $82,925 | $24,050 | $107 |
| Portfolio turnover rateJ | 24%I | 34% | 40% | 50% |
A For the period August 13, 2013 (commencement of sale of shares) to October 31, 2013.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.30%.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2016
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor Diversified International Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Class I and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a maximum holding period of seven years from the initial date of purchase.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective on or about July 1, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the other Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of April 30, 2016, including information on transfers between Levels 1 and 2 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, futures transactions, passive foreign investment companies (PFIC), market discount, 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 | $396,652 |
| Gross unrealized depreciation | (127,366) |
| Net unrealized appreciation (depreciation) on securities | $269,286 |
| Tax cost | $1,729,290 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2017 | $(2,606,019) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
| Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment.
|
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
During the period the Fund recognized net realized gain (loss) of $(468) and a change in net unrealized appreciation (depreciation) of $(966) related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $316,532 and $227,752, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .424% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .67% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
| Class A | -% | .25% | $778 | $– |
| Class T | .25% | .25% | 626 | – |
| Class B | .75% | .25% | 45 | 34 |
| Class C | .75% | .25% | 1,164 | 70 |
| | | | $2,613 | $104 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $43 |
| Class T | 11 |
| Class B(a) | 1 |
| Class C(a) | 6 |
| | $61 |
(a) When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| | Amount | % of
Class-Level Average
Net Assets(a) |
| Class A | $728 | .23 |
| Class T | 307 | .24 |
| Class B | 14 | .30 |
| Class C | 275 | .24 |
| Class I | 764 | .20 |
| Class Z | 20 | .05 |
| | $2,108 | |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $143. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $14 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $7.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| From net investment income | | |
| Class A | $4,188 | $7,030 |
| Class T | 941 | 2,091 |
| Class C | – | 706 |
| Class I | 6,836 | 8,555 |
| Class Z | 937 | 356 |
| Total | $12,902 | $18,738 |
| From net realized gain | | |
| Class A | $– | $727 |
| Class T | – | 317 |
| Class B | – | 21 |
| Class C | – | 280 |
| Class I | – | 770 |
| Class Z | – | 26 |
| Total | $– | $2,141 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| Class A | | | | |
| Shares sold | 2,734 | 6,331 | $52,492 | $128,828 |
| Reinvestment of distributions | 200 | 378 | 3,990 | 7,410 |
| Shares redeemed | (3,816) | (9,229) | (72,623) | (183,333) |
| Net increase (decrease) | (882) | (2,520) | $(16,141) | $(47,095) |
| Class T | | | | |
| Shares sold | 524 | 1,574 | $9,870 | $31,817 |
| Reinvestment of distributions | 46 | 120 | 909 | 2,332 |
| Shares redeemed | (1,301) | (2,697) | (24,515) | (53,711) |
| Net increase (decrease) | (731) | (1,003) | $(13,736) | $(19,562) |
| Class B | | | | |
| Shares sold | 3 | 20 | $56 | $400 |
| Reinvestment of distributions | – | 1 | – | 19 |
| Shares redeemed | (178) | (467) | (3,252) | (9,077) |
| Net increase (decrease) | (175) | (446) | $(3,196) | $(8,658) |
| Class C | | | | |
| Shares sold | 591 | 2,044 | $10,857 | $40,003 |
| Reinvestment of distributions | – | 44 | – | 826 |
| Shares redeemed | (1,284) | (2,036) | (23,333) | (39,156) |
| Net increase (decrease) | (693) | 52 | $(12,476) | $1,673 |
| Class I | | | | |
| Shares sold | 10,468 | 13,465 | $200,204 | $273,323 |
| Reinvestment of distributions | 284 | 415 | 5,760 | 8,253 |
| Shares redeemed | (6,665) | (9,912) | (129,454) | (200,987) |
| Net increase (decrease) | 4,087 | 3,968 | $76,510 | $80,589 |
| Class Z | | | | |
| Shares sold | 700 | 3,275 | $13,837 | $65,174 |
| Reinvestment of distributions | 46 | 19 | 937 | 382 |
| Shares redeemed | (282) | (449) | (5,431) | (9,238) |
| Net increase (decrease) | 464 | 2,845 | $9,343 | $56,318 |
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.
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, 2015 to April 30, 2016).
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.
| | Annualized Expense Ratio-A | Beginning
Account Value
November 1, 2015 | Ending
Account Value
April 30, 2016 | Expenses Paid
During Period-B
November 1, 2015
to April 30, 2016 |
| Class A | 1.23% | | | |
| Actual | | $1,000.00 | $963.80 | $6.01 |
| Hypothetical-C | | $1,000.00 | $1,018.75 | $6.17 |
| Class T | 1.49% | | | |
| Actual | | $1,000.00 | $962.70 | $7.27 |
| Hypothetical-C | | $1,000.00 | $1,017.45 | $7.47 |
| Class B | 2.05% | | | |
| Actual | | $1,000.00 | $960.10 | $9.99 |
| Hypothetical-C | | $1,000.00 | $1,014.67 | $10.27 |
| Class C | 1.98% | | | |
| Actual | | $1,000.00 | $960.40 | $9.65 |
| Hypothetical-C | | $1,000.00 | $1,015.02 | $9.92 |
| Class I | .95% | | | |
| Actual | | $1,000.00 | $965.20 | $4.64 |
| Hypothetical-C | | $1,000.00 | $1,020.14 | $4.77 |
| Class Z | .79% | | | |
| Actual | | $1,000.00 | $966.20 | $3.86 |
| Hypothetical-C | | $1,000.00 | $1,020.93 | $3.97 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
C 5% return per year before expenses
ADIF-SANN-0616
1.720067.117
Fidelity Advisor® Emerging Markets Fund
Class I
Semi-Annual Report April 30, 2016 |
|
Contents
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. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Five Stocks as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 3.6 | 3.4 |
| Tencent Holdings Ltd. (Cayman Islands, Internet Software & Services) | 3.5 | 3.3 |
| Naspers Ltd. Class N (South Africa, Media) | 2.0 | 2.2 |
| Alibaba Group Holding Ltd. sponsored ADR (Cayman Islands, Internet Software & Services) | 1.6 | 0.7 |
| Infosys Ltd. (India, IT Services) | 1.4 | 0.0 |
| | 12.1 | |
Top Five Market Sectors as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Information Technology | 21.8 | 23.4 |
| Financials | 18.4 | 19.8 |
| Consumer Discretionary | 14.3 | 18.3 |
| Consumer Staples | 13.8 | 8.8 |
| Industrials | 9.9 | 11.2 |
Top Five Countries as of April 30, 2016
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| India | 13.4 | 10.6 |
| United States of America | 10.2 | 8.4 |
| Cayman Islands | 9.5 | 7.7 |
| Mexico | 8.6 | 6.8 |
| Brazil | 8.3 | 6.4 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2016 |
| | Stocks | 99.1% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 0.9% |
| As of October 31, 2015 |
| | Stocks | 99.9% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 0.1% |
Investments April 30, 2016 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 95.5% | | | |
| | | Shares | Value |
| Argentina - 0.9% | | | |
| Banco Macro SA sponsored ADR | | 31,700 | $1,985,371 |
| Grupo Financiero Galicia SA sponsored ADR | | 70,700 | 2,012,829 |
|
| TOTAL ARGENTINA | | | 3,998,200 |
|
| Australia - 1.0% | | | |
| Amcor Ltd. (a) | | 188,319 | 2,205,101 |
| Sydney Airport unit | | 401,832 | 2,080,679 |
|
| TOTAL AUSTRALIA | | | 4,285,780 |
|
| Belgium - 0.5% | | | |
| Anheuser-Busch InBev SA NV | | 15,700 | 1,943,345 |
| Bermuda - 2.8% | | | |
| Axalta Coating Systems (a) | | 67,800 | 1,930,266 |
| China Gas Holdings Ltd. | | 1,659,000 | 2,395,155 |
| China Resource Gas Group Ltd. | | 844,000 | 2,388,385 |
| Credicorp Ltd. (United States) | | 23,714 | 3,448,490 |
| Markit Ltd. (a) | | 48,000 | 1,674,720 |
|
| TOTAL BERMUDA | | | 11,837,016 |
|
| Brazil - 4.7% | | | |
| BB Seguridade Participacoes SA | | 330,700 | 2,884,641 |
| Cielo SA | | 354,886 | 3,456,766 |
| Kroton Educacional SA | | 835,000 | 3,107,654 |
| Qualicorp SA | | 536,900 | 2,326,033 |
| Smiles SA | | 180,500 | 2,094,047 |
| Ultrapar Participacoes SA | | 152,100 | 3,202,757 |
| Weg SA | | 606,930 | 2,678,839 |
|
| TOTAL BRAZIL | | | 19,750,737 |
|
| British Virgin Islands - 0.4% | | | |
| Mail.Ru Group Ltd. GDR (Reg. S) (a) | | 88,800 | 1,798,200 |
| Cayman Islands - 9.5% | | | |
| Alibaba Group Holding Ltd. sponsored ADR (a) | | 88,900 | 6,839,966 |
| Baidu.com, Inc. sponsored ADR (a) | | 28,400 | 5,518,120 |
| ENN Energy Holdings Ltd. | | 370,000 | 1,804,727 |
| Fu Shou Yuan International Group Ltd. | | 2,877,000 | 2,018,479 |
| New Oriental Education & Technology Group, Inc. sponsored ADR | | 60,200 | 2,357,432 |
| Shenzhou International Group Holdings Ltd. | | 469,000 | 2,424,508 |
| Sino Biopharmaceutical Ltd. | | 3,055,000 | 2,164,786 |
| TAL Education Group ADR (a) | | 36,900 | 2,135,034 |
| Tencent Holdings Ltd. | | 715,200 | 14,553,115 |
|
| TOTAL CAYMAN ISLANDS | | | 39,816,167 |
|
| China - 2.7% | | | |
| China Pacific Insurance (Group) Co. Ltd. (H Shares) | | 778,200 | 2,728,716 |
| Inner Mongoli Yili Industries Co. Ltd. | | 824,200 | 1,913,443 |
| Jiangsu Hengrui Medicine Co. Ltd. | | 276,860 | 1,996,250 |
| Kweichow Moutai Co. Ltd. | | 68,010 | 2,638,860 |
| Shanghai International Airport Co. Ltd. | | 475,700 | 1,999,335 |
|
| TOTAL CHINA | | | 11,276,604 |
|
| Denmark - 0.5% | | | |
| Novo Nordisk A/S Series B sponsored ADR | | 36,300 | 2,025,177 |
| France - 0.5% | | | |
| Dassault Systemes SA | | 26,753 | 2,092,270 |
| Germany - 1.0% | | | |
| adidas AG | | 16,300 | 2,101,602 |
| Wirecard AG (b) | | 51,700 | 2,232,693 |
|
| TOTAL GERMANY | | | 4,334,295 |
|
| Hong Kong - 1.7% | | | |
| AIA Group Ltd. | | 384,000 | 2,298,089 |
| Guangdong Investment Ltd. | | 1,972,000 | 2,784,585 |
| Techtronic Industries Co. Ltd. | | 559,500 | 2,097,381 |
|
| TOTAL HONG KONG | | | 7,180,055 |
|
| India - 13.4% | | | |
| Adani Ports & Special Economic Zone | | 774,193 | 2,776,235 |
| Amara Raja Batteries Ltd. | | 146,862 | 2,113,316 |
| Asian Paints India Ltd. | | 195,275 | 2,546,567 |
| Bharti Infratel Ltd. | | 387,693 | 2,188,399 |
| Colgate-Palmolive (India) | | 170,747 | 2,161,408 |
| GlaxoSmithKline Consumer Healthcare Ltd. (a) | | 25,178 | 2,235,433 |
| HCL Technologies Ltd. | | 229,109 | 2,587,869 |
| HDFC Bank Ltd. (a) | | 108,338 | 2,202,169 |
| Hindustan Unilever Ltd. | | 234,061 | 3,058,186 |
| Housing Development Finance Corp. Ltd. | | 292,221 | 4,788,341 |
| IndusInd Bank Ltd. | | 139,823 | 2,207,787 |
| Infosys Ltd. | | 315,118 | 5,724,328 |
| ITC Ltd. | | 693,666 | 3,393,377 |
| LIC Housing Finance Ltd. (a) | | 312,300 | 2,173,507 |
| Lupin Ltd. | | 94,777 | 2,293,251 |
| Maruti Suzuki India Ltd. (a) | | 47,987 | 2,741,325 |
| Power Grid Corp. of India Ltd. | | 955,059 | 2,061,790 |
| Sun Pharmaceutical Industries Ltd. | | 258,261 | 3,154,318 |
| Tata Consultancy Services Ltd. | | 111,953 | 4,273,311 |
| Titan Co. Ltd. | | 342,580 | 1,835,503 |
|
| TOTAL INDIA | | | 56,516,420 |
|
| Indonesia - 3.9% | | | |
| PT ACE Hardware Indonesia Tbk | | 28,972,600 | 2,032,124 |
| PT Bank Central Asia Tbk | | 3,158,700 | 3,125,647 |
| PT Bank Rakyat Indonesia Tbk | | 3,379,800 | 2,652,482 |
| PT Kalbe Farma Tbk | | 19,843,000 | 2,068,860 |
| PT Matahari Department Store Tbk | | 1,663,000 | 2,395,890 |
| PT Surya Citra Media Tbk | | 9,326,700 | 2,263,076 |
| PT Tower Bersama Infrastructure Tbk (a) | | 3,761,900 | 1,690,117 |
|
| TOTAL INDONESIA | | | 16,228,196 |
|
| Isle of Man - 0.4% | | | |
| Playtech Ltd. | | 136,389 | 1,603,246 |
| Israel - 1.4% | | | |
| Check Point Software Technologies Ltd. (a) | | 24,000 | 1,988,880 |
| Frutarom Industries Ltd. | | 41,000 | 2,101,326 |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | | 33,900 | 1,845,855 |
|
| TOTAL ISRAEL | | | 5,936,061 |
|
| Kenya - 0.5% | | | |
| Safaricom Ltd. | | 12,322,800 | 2,086,335 |
| Korea (South) - 5.5% | | | |
| AMOREPACIFIC Corp. | | 10,203 | 3,629,059 |
| AMOREPACIFIC Group, Inc. | | 18,712 | 2,743,899 |
| Coway Co. Ltd. | | 27,100 | 2,332,302 |
| KT&G Corp. | | 33,089 | 3,552,445 |
| LG Chemical Ltd. | | 12,680 | 3,287,110 |
| LG Household & Health Care Ltd. | | 3,686 | 3,239,839 |
| NAVER Corp. | | 7,273 | 4,297,747 |
|
| TOTAL KOREA (SOUTH) | | | 23,082,401 |
|
| Luxembourg - 0.5% | | | |
| Eurofins Scientific SA | | 5,700 | 2,115,005 |
| Mexico - 8.6% | | | |
| Banregio Grupo Financiero S.A.B. de CV | | 365,566 | 2,190,678 |
| El Puerto de Liverpool S.A.B. de CV Class C | | 185,100 | 2,104,083 |
| Fomento Economico Mexicano S.A.B. de CV unit | | 419,900 | 3,906,943 |
| Gruma S.A.B. de CV Series B | | 156,100 | 2,280,349 |
| Grupo Aeroportuario del Pacifico S.A.B. de CV Series B | | 266,721 | 2,513,011 |
| Grupo Aeroportuario del Sureste S.A.B. de CV Series B | | 166,495 | 2,556,846 |
| Grupo Aeroportuario Norte S.A.B. de CV | | 386,000 | 2,233,708 |
| Grupo Financiero Banorte S.A.B. de CV Series O | | 633,900 | 3,598,621 |
| Grupo GICSA SA de CV (a) | | 1,802,428 | 1,416,409 |
| Infraestructura Energetica Nova S.A.B. de CV (b) | | 501,400 | 1,959,303 |
| Kimberly-Clark de Mexico SA de CV Series A | | 1,025,200 | 2,426,445 |
| Megacable Holdings S.A.B. de CV unit | | 494,884 | 2,285,343 |
| Promotora y Operadora de Infraestructura S.A.B. de CV | | 163,300 | 2,070,977 |
| Tenedora Nemak SA de CV | | 1,415,300 | 2,030,242 |
| Wal-Mart de Mexico SA de CV Series V | | 991,100 | 2,451,157 |
|
| TOTAL MEXICO | | | 36,024,115 |
|
| Philippines - 3.9% | | | |
| Ayala Corp. | | 158,850 | 2,603,877 |
| Ayala Land, Inc. | | 3,524,600 | 2,596,522 |
| D&L Industries, Inc. | | 9,851,700 | 1,885,092 |
| GT Capital Holdings, Inc. | | 76,880 | 2,234,399 |
| International Container Terminal Services, Inc. | | 1,461,520 | 2,019,747 |
| SM Investments Corp. | | 121,046 | 2,429,413 |
| SM Prime Holdings, Inc. | | 5,142,900 | 2,476,596 |
|
| TOTAL PHILIPPINES | | | 16,245,646 |
|
| Russia - 1.4% | | | |
| Magnit OJSC (a) | | 19,889 | 2,764,148 |
| NOVATEK OAO GDR (Reg. S) | | 32,100 | 3,081,600 |
|
| TOTAL RUSSIA | | | 5,845,748 |
|
| South Africa - 6.8% | | | |
| Aspen Pharmacare Holdings Ltd. | | 141,193 | 3,327,474 |
| Bidvest Group Ltd. | | 118,915 | 3,017,974 |
| Discovery Ltd. | | 289,962 | 2,591,382 |
| FirstRand Ltd. | | 993,300 | 3,192,320 |
| Mondi Ltd. | | 125,520 | 2,411,423 |
| Mr Price Group Ltd. | | 202,500 | 2,572,352 |
| Naspers Ltd. Class N | | 60,900 | 8,356,095 |
| Sanlam Ltd. | | 641,100 | 3,107,490 |
|
| TOTAL SOUTH AFRICA | | | 28,576,510 |
|
| Spain - 0.5% | | | |
| Amadeus IT Holding SA Class A | | 46,900 | 2,134,151 |
| Switzerland - 0.5% | | | |
| Sika AG | | 500 | 2,128,114 |
| Taiwan - 5.3% | | | |
| Advantech Co. Ltd. | | 285,000 | 2,011,578 |
| ECLAT Textile Co. Ltd. | | 207,540 | 2,367,535 |
| Largan Precision Co. Ltd. | | 41,000 | 2,881,157 |
| Taiwan Semiconductor Manufacturing Co. Ltd. | | 3,326,000 | 15,257,222 |
|
| TOTAL TAIWAN | | | 22,517,492 |
|
| Thailand - 1.6% | | | |
| Airports of Thailand PCL (For. Reg.) | | 223,000 | 2,503,322 |
| Bangkok Dusit Medical Services PCL (For. Reg.) | | 3,186,000 | 2,171,443 |
| Thai Beverage PCL | | 3,651,100 | 2,022,582 |
|
| TOTAL THAILAND | | | 6,697,347 |
|
| Turkey - 2.2% | | | |
| Bim Birlesik Magazalar A/S JSC | | 107,000 | 2,355,683 |
| Koc Holding A/S | | 496,000 | 2,593,452 |
| Tofas Turk Otomobil Fabrikasi A/S | | 266,162 | 2,106,085 |
| Tupras Turkiye Petrol Rafinelleri A/S | | 86,000 | 2,269,871 |
|
| TOTAL TURKEY | | | 9,325,091 |
|
| United Arab Emirates - 0.6% | | | |
| DP World Ltd. | | 127,877 | 2,416,875 |
| United Kingdom - 2.1% | | | |
| British American Tobacco PLC (United Kingdom) | | 33,900 | 2,066,954 |
| Hikma Pharmaceuticals PLC | | 78,206 | 2,518,526 |
| NMC Health PLC | | 133,500 | 2,042,315 |
| Prudential PLC | | 107,531 | 2,122,612 |
|
| TOTAL UNITED KINGDOM | | | 8,750,407 |
|
| United States of America - 10.2% | | | |
| A.O. Smith Corp. | | 24,400 | 1,884,168 |
| Alphabet, Inc. Class C | | 2,460 | 1,704,805 |
| Amazon.com, Inc. (a) | | 3,400 | 2,242,606 |
| Amphenol Corp. Class A | | 32,100 | 1,792,143 |
| China Biologic Products, Inc. (a) | | 19,200 | 2,246,400 |
| Danaher Corp. | | 19,000 | 1,838,250 |
| Ecolab, Inc. | | 16,470 | 1,893,721 |
| Facebook, Inc. Class A (a) | | 15,800 | 1,857,764 |
| Gartner, Inc. Class A (a) | | 19,700 | 1,717,249 |
| International Flavors & Fragrances, Inc. | | 17,000 | 2,030,990 |
| MasterCard, Inc. Class A | | 20,000 | 1,939,800 |
| McGraw Hill Financial, Inc. | | 19,800 | 2,115,630 |
| MercadoLibre, Inc. | | 18,100 | 2,260,509 |
| Mettler-Toledo International, Inc. (a) | | 5,480 | 1,961,566 |
| Moody's Corp. | | 20,500 | 1,962,260 |
| MSCI, Inc. Class A | | 28,600 | 2,171,884 |
| NIKE, Inc. Class B | | 33,100 | 1,950,914 |
| Philip Morris International, Inc. | | 20,500 | 2,011,460 |
| PPG Industries, Inc. | | 17,300 | 1,909,747 |
| The Walt Disney Co. | | 17,500 | 1,807,050 |
| TransDigm Group, Inc. (a) | | 8,200 | 1,868,534 |
| Visa, Inc. Class A | | 23,800 | 1,838,312 |
|
| TOTAL UNITED STATES OF AMERICA | | | 43,005,762 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $376,006,621) | | | 401,572,768 |
|
| Nonconvertible Preferred Stocks - 3.6% | | | |
| Brazil - 3.6% | | | |
| Ambev SA sponsored ADR | | 883,280 | 4,937,535 |
| Banco Bradesco SA (PN) | | 668,360 | 5,033,226 |
| Itau Unibanco Holding SA | | 545,600 | 5,214,472 |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | | | |
| (Cost $16,080,286) | | | 15,185,233 |
|
| Money Market Funds - 1.9% | | | |
| Fidelity Cash Central Fund, 0.38% (c) | | 3,562,316 | 3,562,316 |
| Fidelity Securities Lending Cash Central Fund, 0.42% (c)(d) | | 4,137,230 | 4,137,230 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $7,699,546) | | | 7,699,546 |
| TOTAL INVESTMENT PORTFOLIO - 101.0% | | | |
| (Cost $399,786,453) | | | 424,457,547 |
| NET OTHER ASSETS (LIABILITIES) - (1.0)% | | | (4,078,849) |
| NET ASSETS - 100% | | | $420,378,698 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
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 | $7,105 |
| Fidelity Securities Lending Cash Central Fund | 39,758 |
| Total | $46,863 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2016, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Consumer Discretionary | $59,758,662 | $53,218,294 | $6,540,368 | $-- |
| Consumer Staples | 57,732,550 | 55,665,596 | 2,066,954 | -- |
| Energy | 8,554,228 | 8,554,228 | -- | -- |
| Financials | 78,811,167 | 69,459,581 | 9,351,586 | -- |
| Health Care | 34,257,259 | 32,092,473 | 2,164,786 | -- |
| Industrials | 41,594,681 | 41,594,681 | -- | -- |
| Information Technology | 92,361,201 | 56,826,536 | 35,534,665 | -- |
| Materials | 24,329,457 | 24,329,457 | -- | -- |
| Telecommunication Services | 5,964,851 | 5,964,851 | -- | -- |
| Utilities | 13,393,945 | 4,021,093 | 9,372,852 | -- |
| Money Market Funds | 7,699,546 | 7,699,546 | -- | -- |
| Total Investments in Securities: | $424,457,547 | $359,426,336 | $65,031,211 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2016. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
| Transfers | Total |
| Level 1 to Level 2 | $0 |
| Level 2 to Level 1 | $87,051,717 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | April 30, 2016 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $3,926,029) — See accompanying schedule:
Unaffiliated issuers (cost $392,086,907) | $416,758,001 | |
| Fidelity Central Funds (cost $7,699,546) | 7,699,546 | |
| Total Investments (cost $399,786,453) | | $424,457,547 |
| Foreign currency held at value (cost $34,009) | | 33,997 |
| Receivable for investments sold | | 55,455 |
| Receivable for fund shares sold | | 175,963 |
| Dividends receivable | | 580,450 |
| Distributions receivable from Fidelity Central Funds | | 22,330 |
| Prepaid expenses | | 332 |
| Other receivables | | 37,211 |
| Total assets | | 425,363,285 |
| Liabilities | | |
| Payable for fund shares redeemed | $281,733 | |
| Accrued management fee | 278,585 | |
| Distribution and service plan fees payable | 77,644 | |
| Other affiliated payables | 100,234 | |
| Other payables and accrued expenses | 109,161 | |
| Collateral on securities loaned, at value | 4,137,230 | |
| Total liabilities | | 4,984,587 |
| Net Assets | | $420,378,698 |
| Net Assets consist of: | | |
| Paid in capital | | $471,248,235 |
| Accumulated net investment loss | | (689,376) |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (74,848,712) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 24,668,551 |
| Net Assets | | $420,378,698 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($108,847,107 ÷ 5,253,777 shares) | | $20.72 |
| Maximum offering price per share (100/94.25 of $20.72) | | $21.98 |
| Class T: | | |
| Net Asset Value and redemption price per share ($41,531,229 ÷ 2,014,762 shares) | | $20.61 |
| Maximum offering price per share (100/96.50 of $20.61) | | $21.36 |
| Class B: | | |
| Net Asset Value and offering price per share ($2,231,936 ÷ 111,705 shares)(a) | | $19.98 |
| Class C: | | |
| Net Asset Value and offering price per share ($43,003,870 ÷ 2,157,222 shares)(a) | | $19.93 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($218,790,320 ÷ 10,510,785 shares) | | $20.82 |
| Class Z: | | |
| Net Asset Value, offering price and redemption price per share ($5,974,236 ÷ 287,219 shares) | | $20.80 |
(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.
Statement of Operations
| | | Six months ended April 30, 2016 (Unaudited) |
| Investment Income | | |
| Dividends | | $2,484,183 |
| Income from Fidelity Central Funds | | 46,863 |
| Income before foreign taxes withheld | | 2,531,046 |
| Less foreign taxes withheld | | (277,827) |
| Total income | | 2,253,219 |
| Expenses | | |
| Management fee | $1,586,202 | |
| Transfer agent fees | 497,496 | |
| Distribution and service plan fees | 457,367 | |
| Accounting and security lending fees | 103,436 | |
| Custodian fees and expenses | 146,396 | |
| Independent trustees' compensation | 865 | |
| Registration fees | 61,031 | |
| Audit | 59,131 | |
| Legal | 535 | |
| Miscellaneous | 1,355 | |
| Total expenses before reductions | 2,913,814 | |
| Expense reductions | (5,648) | 2,908,166 |
| Net investment income (loss) | | (654,947) |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (13,726,251) | |
| Foreign currency transactions | (10,068) | |
| Total net realized gain (loss) | | (13,736,319) |
Change in net unrealized appreciation (depreciation) on:
Investment securities (net of decrease in deferred foreign taxes of $141,583) | 13,720,840 | |
| Assets and liabilities in foreign currencies | 11,688 | |
| Total change in net unrealized appreciation (depreciation) | | 13,732,528 |
| Net gain (loss) | | (3,791) |
| Net increase (decrease) in net assets resulting from operations | | $(658,738) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended April 30, 2016 (Unaudited) | Year ended October 31, 2015 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $(654,947) | $1,401,023 |
| Net realized gain (loss) | (13,736,319) | (12,422,672) |
| Change in net unrealized appreciation (depreciation) | 13,732,528 | (41,643,776) |
| Net increase (decrease) in net assets resulting from operations | (658,738) | (52,665,425) |
| Distributions to shareholders from net investment income | (397,152) | (1,046,601) |
| Distributions to shareholders from net realized gain | – | (487,287) |
| Total distributions | (397,152) | (1,533,888) |
| Share transactions - net increase (decrease) | (137,433) | 3,501,123 |
| Redemption fees | 41,238 | 73,251 |
| Total increase (decrease) in net assets | (1,152,085) | (50,624,939) |
| Net Assets | | |
| Beginning of period | 421,530,783 | 472,155,722 |
| End of period (including accumulated net investment loss of $689,376 and undistributed net investment income of $362,723, respectively) | $420,378,698 | $421,530,783 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Markets Fund Class A
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| April 30, | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.73 | $23.38 | $22.62 | $20.51 | $20.50 | $23.71 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.04) | .06 | .06 | .08 | .22 | .21 |
| Net realized and unrealized gain (loss) | .03 | (2.66) | .76 | 2.23 | (.06) | (3.19) |
| Total from investment operations | (.01) | (2.60) | .82 | 2.31 | .16 | (2.98) |
| Distributions from net investment income | – | (.02) | (.05) | (.20) | (.15) | (.11) |
| Distributions from net realized gain | – | (.03) | (.01) | – | – | (.13) |
| Total distributions | – | (.05) | (.06) | (.20) | (.15) | (.24) |
| Redemption fees added to paid in capitalA | –B | –B | –B | –B | –B | .01 |
| Net asset value, end of period | $20.72 | $20.73 | $23.38 | $22.62 | $20.51 | $20.50 |
| Total ReturnC,D,E | (.05)% | (11.13)% | 3.65% | 11.34% | .80% | (12.69)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 1.54%H | 1.52% | 1.52% | 1.56% | 1.54% | 1.54% |
| Expenses net of fee waivers, if any | 1.54%H | 1.52% | 1.52% | 1.55% | 1.54% | 1.54% |
| Expenses net of all reductions | 1.54%H | 1.50% | 1.52% | 1.50% | 1.48% | 1.47% |
| Net investment income (loss) | (.40)%H | .28% | .26% | .38% | 1.07% | .92% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $108,847 | $112,931 | $141,601 | $146,378 | $160,464 | $202,477 |
| Portfolio turnover rateI | 91%H | 110% | 97% | 121% | 177% | 122% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Markets Fund Class T
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| April 30, | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.65 | $23.30 | $22.55 | $20.44 | $20.43 | $23.61 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.07) | .01 | –B | .03 | .16 | .15 |
| Net realized and unrealized gain (loss) | .03 | (2.66) | .76 | 2.22 | (.06) | (3.18) |
| Total from investment operations | (.04) | (2.65) | .76 | 2.25 | .10 | (3.03) |
| Distributions from net investment income | – | – | –B | (.14) | (.09) | (.04) |
| Distributions from net realized gain | – | – | (.01) | – | – | (.13) |
| Total distributions | – | – | (.01) | (.14) | (.09) | (.16)C |
| Redemption fees added to paid in capitalA | –B | –B | –B | –B | –B | .01 |
| Net asset value, end of period | $20.61 | $20.65 | $23.30 | $22.55 | $20.44 | $20.43 |
| Total ReturnD,E,F | (.19)% | (11.37)% | 3.39% | 11.06% | .49% | (12.89)% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 1.80%I | 1.78% | 1.78% | 1.81% | 1.80% | 1.79% |
| Expenses net of fee waivers, if any | 1.80%I | 1.78% | 1.78% | 1.81% | 1.80% | 1.79% |
| Expenses net of all reductions | 1.80%I | 1.76% | 1.78% | 1.76% | 1.73% | 1.73% |
| Net investment income (loss) | (.66)%I | .02% | - %J | .13% | .81% | .66% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $41,531 | $43,365 | $54,341 | $55,797 | $58,919 | $73,146 |
| Portfolio turnover rateK | 91%I | 110% | 97% | 121% | 177% | 122% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C 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.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 Annualized
J Amount represents less than .005%.
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Markets Fund Class B
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| April 30, | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.07 | $22.75 | $22.11 | $20.03 | $20.03 | $23.14 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.11) | (.10) | (.11) | (.08) | .06 | .04 |
| Net realized and unrealized gain (loss) | .02 | (2.58) | .75 | 2.18 | (.06) | (3.13) |
| Total from investment operations | (.09) | (2.68) | .64 | 2.10 | – | (3.09) |
| Distributions from net investment income | – | – | – | (.02) | – | (.01) |
| Distributions from net realized gain | – | – | – | – | – | (.03) |
| Total distributions | – | – | – | (.02) | – | (.03)B |
| Redemption fees added to paid in capitalA | –C | –C | –C | –C | –C | .01 |
| Net asset value, end of period | $19.98 | $20.07 | $22.75 | $22.11 | $20.03 | $20.03 |
| Total ReturnD,E,F | (.45)% | (11.78)% | 2.89% | 10.50% | -% | (13.33)% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 2.29%I | 2.28% | 2.28% | 2.31% | 2.29% | 2.29% |
| Expenses net of fee waivers, if any | 2.29%I | 2.28% | 2.28% | 2.31% | 2.29% | 2.29% |
| Expenses net of all reductions | 2.29%I | 2.26% | 2.28% | 2.26% | 2.23% | 2.22% |
| Net investment income (loss) | (1.15)%I | (.48)% | (.49)% | (.37)% | .32% | .16% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $2,232 | $3,255 | $7,546 | $11,391 | $15,994 | $21,304 |
| Portfolio turnover rateJ | 91%I | 110% | 97% | 121% | 177% | 122% |
A Calculated based on average shares outstanding during the period.
B 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.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Markets Fund Class C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| April 30, | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.02 | $22.70 | $22.06 | $20.00 | $20.00 | $23.13 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.11) | (.10) | (.11) | (.08) | .06 | .04 |
| Net realized and unrealized gain (loss) | .02 | (2.58) | .75 | 2.18 | (.06) | (3.12) |
| Total from investment operations | (.09) | (2.68) | .64 | 2.10 | – | (3.08) |
| Distributions from net investment income | – | – | – | (.04) | – | (.01) |
| Distributions from net realized gain | – | – | – | – | – | (.05) |
| Total distributions | – | – | – | (.04) | – | (.06) |
| Redemption fees added to paid in capitalA | –B | –B | –B | –B | –B | .01 |
| Net asset value, end of period | $19.93 | $20.02 | $22.70 | $22.06 | $20.00 | $20.00 |
| Total ReturnC,D,E | (.45)% | (11.81)% | 2.90% | 10.49% | -% | (13.33)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 2.29%H | 2.27% | 2.27% | 2.31% | 2.29% | 2.28% |
| Expenses net of fee waivers, if any | 2.29%H | 2.27% | 2.27% | 2.30% | 2.29% | 2.28% |
| Expenses net of all reductions | 2.29%H | 2.26% | 2.27% | 2.25% | 2.23% | 2.22% |
| Net investment income (loss) | (1.15)%H | (.47)% | (.49)% | (.37)% | .32% | .17% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $43,004 | $46,595 | $64,026 | $62,532 | $65,598 | $80,855 |
| Portfolio turnover rateI | 91%H | 110% | 97% | 121% | 177% | 122% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Markets Fund Class I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| April 30, | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.83 | $23.50 | $22.73 | $20.61 | $20.63 | $23.87 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.01) | .14 | .14 | .15 | .28 | .29 |
| Net realized and unrealized gain (loss) | .04 | (2.67) | .76 | 2.25 | (.06) | (3.21) |
| Total from investment operations | .03 | (2.53) | .90 | 2.40 | .22 | (2.92) |
| Distributions from net investment income | (.04) | (.11) | (.12) | (.28) | (.24) | (.20) |
| Distributions from net realized gain | – | (.03) | (.01) | – | – | (.13) |
| Total distributions | (.04) | (.14) | (.13) | (.28) | (.24) | (.33) |
| Redemption fees added to paid in capitalA | –B | –B | –B | –B | –B | .01 |
| Net asset value, end of period | $20.82 | $20.83 | $23.50 | $22.73 | $20.61 | $20.63 |
| Total ReturnC,D | .14% | (10.83)% | 4.00% | 11.73% | 1.08% | (12.41)% |
| Ratios to Average Net AssetsE,F | | | | | | |
| Expenses before reductions | 1.19%G | 1.17% | 1.18% | 1.23% | 1.22% | 1.21% |
| Expenses net of fee waivers, if any | 1.19%G | 1.17% | 1.18% | 1.22% | 1.22% | 1.21% |
| Expenses net of all reductions | 1.19%G | 1.16% | 1.18% | 1.18% | 1.16% | 1.14% |
| Net investment income (loss) | (.05)%G | .63% | .60% | .71% | 1.39% | 1.25% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $218,790 | $209,270 | $199,098 | $150,576 | $145,782 | $138,312 |
| Portfolio turnover rateH | 91%G | 110% | 97% | 121% | 177% | 122% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Markets Fund Class Z
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | |
| April 30, | 2016 | 2015 | 2014 | 2013 A |
| Selected Per–Share Data | | | | |
| Net asset value, beginning of period | $20.83 | $23.50 | $22.73 | $21.33 |
| Income from Investment Operations | | | | |
| Net investment income (loss)B | .01 | .17 | .18 | .03 |
| Net realized and unrealized gain (loss) | .03 | (2.66) | .76 | 1.37 |
| Total from investment operations | .04 | (2.49) | .94 | 1.40 |
| Distributions from net investment income | (.07) | (.14) | (.16) | – |
| Distributions from net realized gain | – | (.03) | (.01) | – |
| Total distributions | (.07) | (.18)C | (.17) | – |
| Redemption fees added to paid in capitalB,D | – | – | – | – |
| Net asset value, end of period | $20.80 | $20.83 | $23.50 | $22.73 |
| Total ReturnE,F | .19% | (10.68)% | 4.19% | 6.56% |
| Ratios to Average Net AssetsG,H | | | | |
| Expenses before reductions | 1.03%I | 1.02% | 1.02% | 1.05%I |
| Expenses net of fee waivers, if any | 1.03%I | 1.02% | 1.02% | 1.05%I |
| Expenses net of all reductions | 1.03%I | 1.00% | 1.02% | 1.00%I |
| Net investment income (loss) | .10%I | .78% | .77% | .62%I |
| Supplemental Data | | | | |
| Net assets, end of period (000 omitted) | $5,974 | $6,114 | $5,544 | $107 |
| Portfolio turnover rateJ | 91%I | 110% | 97% | 121% |
A For the period August 13, 2013 (commencement of sale of shares) to October 31, 2013.
B Calculated based on average shares outstanding during the period.
C Total distributions of $.18 per share is comprised of distributions from net investment income of $.143 and distributions from net realized gain of $.033 per share.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2016
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, Class I and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a maximum holding period of seven years from the initial date of purchase. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective on or about July 1, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 �� unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of April 30, 2016, including information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), 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 | $46,138,355 |
| Gross unrealized depreciation | (23,211,711) |
| Net unrealized appreciation (depreciation) on securities | $22,926,644 |
| Tax cost | $401,530,903 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2017 | $(47,911,843) |
| Total with expiration | $(47,911,843) |
| No expiration | |
| Short-term | $(12,456,052) |
| Total no expiration | $(12,456,052) |
| Total capital loss carryforward | $(60,367,895) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.50% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $181,903,642 and $184,169,805, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .55% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .80% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares, except for the Class I. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
| Class A | -% | .25% | $131,354 | $222 |
| Class T | .25% | .25% | 100,958 | – |
| Class B | .75% | .25% | 12,991 | 9,743 |
| Class C | .75% | .25% | 212,064 | 16,361 |
| | | | $457,367 | $26,326 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $16,692 |
| Class T | 4,608 |
| Class B(a) | 1,041 |
| Class C(a) | 2,066 |
| | $24,407 |
(a) When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| | Amount | % of
Class-Level Average
Net Assets(a) |
| Class A | $159,384 | .30 |
| Class T | 63,712 | .32 |
| Class B | 3,939 | .30 |
| Class C | 64,561 | .30 |
| Class I | 204,569 | .20 |
| Class Z | 1,331 | .05 |
| | $497,496 | |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $695 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $348 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $39,758, including $525 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $4,176 for the period.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $22.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $1,450.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| From net investment income | | |
| Class A | $– | $115,150 |
| Class I | 377,257 | 898,042 |
| Class Z | 19,895 | 33,409 |
| Total | $397,152 | $1,046,601 |
| From net realized gain | | |
| Class A | $– | $199,998 |
| Class I | – | 279,579 |
| Class Z | – | 7,710 |
| Total | $– | $487,287 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| Class A | | | | |
| Shares sold | 649,337 | 1,093,525 | $12,767,711 | $24,402,020 |
| Reinvestment of distributions | – | 13,163 | – | 302,357 |
| Shares redeemed | (842,924) | (1,715,077) | (16,542,384) | (37,830,400) |
| Net increase (decrease) | (193,587) | (608,389) | $(3,774,673) | $(13,126,023) |
| Class T | | | | |
| Shares sold | 182,219 | 305,389 | $3,546,032 | $6,786,919 |
| Shares redeemed | (267,048) | (537,767) | (5,159,406) | (11,710,693) |
| Net increase (decrease) | (84,829) | (232,378) | $(1,613,374) | $(4,923,774) |
| Class B | | | | |
| Shares sold | 1,396 | 2,482 | $25,071 | $54,329 |
| Shares redeemed | (51,892) | (171,894) | (985,523) | (3,727,701) |
| Net increase (decrease) | (50,496) | (169,412) | $(960,452) | $(3,673,372) |
| Class C | | | | |
| Shares sold | 131,744 | 365,122 | $2,512,301 | $7,912,445 |
| Shares redeemed | (301,615) | (858,213) | (5,692,128) | (18,293,083) |
| Net increase (decrease) | (169,871) | (493,091) | $(3,179,827) | $(10,380,638) |
| Class I | | | | |
| Shares sold | 1,061,826 | 3,524,595 | $21,307,705 | $77,404,353 |
| Reinvestment of distributions | 17,692 | 49,091 | 362,855 | 1,129,581 |
| Shares redeemed | (614,601) | (1,999,205) | (12,159,604) | (44,250,238) |
| Net increase (decrease) | 464,917 | 1,574,481 | $9,510,956 | $34,283,696 |
| Class Z | | | | |
| Shares sold | 21,209 | 119,541 | $423,468 | $2,670,833 |
| Reinvestment of distributions | 971 | 1,789 | 19,895 | 41,119 |
| Shares redeemed | (28,451) | (63,727) | (563,426) | (1,390,718) |
| Net increase (decrease) | (6,271) | 57,603 | $(120,063) | $1,321,234 |
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.
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, 2015 to April 30, 2016).
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.
| | Annualized Expense Ratio-A | Beginning
Account Value
November 1, 2015 | Ending
Account Value
April 30, 2016 | Expenses Paid
During Period-B
November 1, 2015
to April 30, 2016 |
| Class A | 1.54% | | | |
| Actual | | $1,000.00 | $999.50 | $7.66 |
| Hypothetical-C | | $1,000.00 | $1,017.21 | $7.72 |
| Class T | 1.80% | | | |
| Actual | | $1,000.00 | $998.10 | $8.94 |
| Hypothetical-C | | $1,000.00 | $1,015.91 | $9.02 |
| Class B | 2.29% | | | |
| Actual | | $1,000.00 | $995.50 | $11.36 |
| Hypothetical-C | | $1,000.00 | $1,013.48 | $11.46 |
| Class C | 2.29% | | | |
| Actual | | $1,000.00 | $995.50 | $11.36 |
| Hypothetical-C | | $1,000.00 | $1,013.48 | $11.46 |
| Class I | 1.19% | | | |
| Actual | | $1,000.00 | $1,001.40 | $5.92 |
| Hypothetical-C | | $1,000.00 | $1,018.95 | $5.97 |
| Class Z | 1.03% | | | |
| Actual | | $1,000.00 | $1,001.90 | $5.13 |
| Hypothetical-C | | $1,000.00 | $1,019.74 | $5.17 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
C 5% return per year before expenses
FAEMI-SANN-0616
1.800641.112
Fidelity Advisor® Emerging Asia Fund
Class I
Semi-Annual Report April 30, 2016 |
|
Contents
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. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Samsung Electronics Co. Ltd. | 5.0 | 6.3 |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 4.4 | 4.1 |
| Tencent Holdings Ltd. | 4.0 | 3.7 |
| AIA Group Ltd. | 2.8 | 2.9 |
| China Construction Bank Corp. (H Shares) | 2.4 | 2.7 |
| Alibaba Group Holding Ltd. sponsored ADR | 2.1 | 0.8 |
| Hon Hai Precision Industry Co. Ltd. (Foxconn) | 1.8 | 1.9 |
| Industrial & Commercial Bank of China Ltd. (H Shares) | 1.7 | 1.9 |
| CNOOC Ltd. sponsored ADR | 1.5 | 1.4 |
| China Mobile Ltd. | 1.4 | 1.6 |
| | 27.1 | |
Top Five Market Sectors as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Financials | 31.6 | 35.3 |
| Information Technology | 23.0 | 22.1 |
| Consumer Discretionary | 9.4 | 9.0 |
| Industrials | 6.1 | 5.5 |
| Telecommunication Services | 5.9 | 7.1 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2016 |
| | Stocks | 99.7% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 0.3% |
| As of October 31, 2015 |
| | Stocks | 98.4% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 1.6% |
Investments April 30, 2016 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 99.7% | | | |
| | | Shares | Value |
| Australia - 0.2% | | | |
| Beacon Lighting Group Ltd. | | 122,049 | $168,896 |
| Sino Gas & Energy Ltd. (a) | | 1,335,338 | 90,364 |
| Woodside Petroleum Ltd. | | 12,043 | 259,506 |
|
| TOTAL AUSTRALIA | | | 518,766 |
|
| Bermuda - 2.8% | | | |
| Brilliance China Automotive Holdings Ltd. | | 782,000 | 771,322 |
| BW LPG Ltd. | | 9,210 | 55,362 |
| Cheung Kong Infrastructure Holdings Ltd. | | 86,000 | 811,618 |
| CSI Properties Ltd. | | 8,640,000 | 262,433 |
| Digital China Holdings Ltd. (H Shares) | | 308,000 | 212,638 |
| Great Eagle Holdings Ltd. | | 39,000 | 157,978 |
| Hongkong Land Holdings Ltd. | | 172,700 | 1,096,645 |
| Joy City Property Ltd. | | 760,000 | 110,257 |
| Kerry Logistics Network Ltd. | | 423,000 | 595,483 |
| PAX Global Technology Ltd. | | 610,000 | 525,345 |
| Shenzhen International Holdings Ltd. | | 550,000 | 897,528 |
| Skyworth Digital Holdings Ltd. | | 1,455,448 | 947,222 |
| Summit Ascent Holdings Ltd. (a) | | 270,000 | 57,895 |
| Tai Cheung Holdings Ltd. | | 67,000 | 51,255 |
|
| TOTAL BERMUDA | | | 6,552,981 |
|
| Cayman Islands - 15.4% | | | |
| 58.com, Inc. ADR (a) | | 15,800 | 863,470 |
| Alibaba Group Holding Ltd. sponsored ADR (a) | | 61,500 | 4,731,810 |
| AMVIG Holdings Ltd. | | 348,000 | 143,292 |
| Belle International Holdings Ltd. | | 713,000 | 434,827 |
| Bitauto Holdings Ltd. ADR (a) | | 11,000 | 274,560 |
| Cheung Kong Property Holdings Ltd. | | 418,500 | 2,858,142 |
| China Modern Dairy Holdings Ltd. | | 1,792,000 | 328,889 |
| China Resources Cement Holdings Ltd. | | 2,469,972 | 812,753 |
| China State Construction International Holdings Ltd. | | 634,000 | 987,585 |
| ChinaCache International Holdings Ltd. sponsored ADR (a) | | 12,300 | 101,721 |
| CK Hutchison Holdings Ltd. | | 252,000 | 3,014,833 |
| Cosmo Lady (China) Holdings Co. Ltd. | | 154,000 | 119,520 |
| Ctrip.com International Ltd. ADR (a) | | 21,500 | 937,615 |
| Daqo New Energy Corp. ADR (a) | | 5,551 | 144,048 |
| ENN Energy Holdings Ltd. | | 238,000 | 1,160,878 |
| Greatview Aseptic Pack Co. Ltd. | | 661,000 | 334,748 |
| Haitian International Holdings Ltd. | | 144,000 | 245,687 |
| iKang Healthcare Group, Inc. sponsored ADR (a) | | 5,300 | 113,844 |
| International Housewares Retail Co. Ltd. | | 1,909,000 | 312,007 |
| JD.com, Inc. sponsored ADR (a) | | 33,800 | 863,928 |
| KWG Property Holding Ltd. | | 373,000 | 241,332 |
| Lee & Man Paper Manufacturing Ltd. | | 1,299,000 | 851,396 |
| Lee's Pharmaceutical Holdings Ltd. | | 93,000 | 75,250 |
| Longfor Properties Co. Ltd. | | 791,000 | 1,109,706 |
| MGM China Holdings Ltd. | | 1,046,000 | 1,465,515 |
| New Oriental Education & Technology Group, Inc. sponsored ADR | | 16,500 | 646,140 |
| Pico Far East Holdings Ltd. | | 650,000 | 176,227 |
| Samson Holding Ltd. | | 1,152,000 | 132,030 |
| SITC International Holdings Co. Ltd. | | 809,000 | 437,241 |
| Sitoy Group Holdings Ltd. | | 303,000 | 110,015 |
| SOHO China Ltd. | | 745,000 | 374,556 |
| Stella International Holdings Ltd. | | 108,500 | 273,727 |
| TAL Education Group ADR (a) | | 10,700 | 619,102 |
| TCC International Holdings Ltd. | | 586,000 | 117,444 |
| Tencent Holdings Ltd. | | 451,500 | 9,187,265 |
| Uni-President China Holdings Ltd. | | 658,000 | 612,775 |
| Xingda International Holdings Ltd. | | 606,000 | 126,816 |
| Zhen Ding Technology Holding Ltd. | | 80,000 | 168,158 |
|
| TOTAL CAYMAN ISLANDS | | | 35,508,852 |
|
| China - 13.9% | | | |
| Anhui Conch Cement Co. Ltd. (H Shares) | | 255,500 | 673,260 |
| BBMG Corp. (H Shares) | | 1,141,500 | 834,240 |
| Beijing Jingneng Clean Energy Co. Ltd. (H Shares) | | 774,000 | 244,204 |
| Beijing Urban Consolidated & Development Group Ltd. (H Shares) | | 435,000 | 251,260 |
| China Construction Bank Corp. (H Shares) | | 8,847,000 | 5,618,969 |
| China Pacific Insurance (Group) Co. Ltd. (H Shares) | | 536,000 | 1,879,455 |
| China Petroleum & Chemical Corp. (H Shares) | | 3,166,000 | 2,231,032 |
| China Railway Construction Corp. Ltd. (H Shares) | | 899,000 | 1,142,892 |
| China Shipping Development Co. Ltd. (H Shares) | | 496,000 | 352,190 |
| China Telecom Corp. Ltd. (H Shares) | | 4,554,000 | 2,254,532 |
| China Vanke Co. Ltd. (H Shares) | | 484,100 | 1,208,326 |
| Chongqing Changan Automobile Co. Ltd. (B Shares) | | 177,600 | 307,261 |
| Huadian Fuxin Energy Corp. Ltd. (H Shares) | | 1,836,000 | 399,940 |
| Huadian Power International Corp. Ltd. (H Shares) | | 1,120,000 | 574,300 |
| Huaneng Renewables Corp. Ltd. (H Shares) | | 3,438,000 | 1,014,500 |
| Huangshan Tourism Development Co. Ltd. | | 78,700 | 165,113 |
| Industrial & Commercial Bank of China Ltd. (H Shares) | | 7,392,000 | 3,957,684 |
| Jiangling Motors Corp. Ltd. (B Shares) | | 84,001 | 231,637 |
| Jiangsu Hengrui Medicine Co. Ltd. | | 128,121 | 923,794 |
| Kweichow Moutai Co. Ltd. | | 34,683 | 1,345,737 |
| PICC Property & Casualty Co. Ltd. (H Shares) | | 765,060 | 1,391,704 |
| Ping An Insurance (Group) Co. of China Ltd. (H Shares) | | 655,000 | 3,073,970 |
| SAIC Motor Corp. Ltd. | | 108,951 | 342,299 |
| Shenzhen Expressway Co. (H Shares) | | 970,000 | 860,880 |
| Tong Ren Tang Technologies Co. Ltd. (H Shares) | | 173,000 | 271,015 |
| TravelSky Technology Ltd. (H Shares) | | 230,000 | 427,416 |
|
| TOTAL CHINA | | | 31,977,610 |
|
| Hong Kong - 12.4% | | | |
| AIA Group Ltd. | | 1,090,200 | 6,524,417 |
| China Everbright Ltd. | | 426,000 | 840,949 |
| China Mobile Ltd. | | 284,000 | 3,260,539 |
| China Resources Beer Holdings Co. Ltd. | | 366,000 | 804,252 |
| China Resources Power Holdings Co. Ltd. | | 406,904 | 685,328 |
| CNOOC Ltd. sponsored ADR | | 27,800 | 3,431,354 |
| Dah Sing Banking Group Ltd. | | 156,400 | 278,249 |
| Far East Horizon Ltd. | | 696,000 | 552,469 |
| Hang Lung Properties Ltd. | | 529,000 | 1,053,331 |
| HKT Trust/HKT Ltd. unit | | 800,500 | 1,150,671 |
| Hysan Development Co. Ltd. | | 300,000 | 1,325,540 |
| Lenovo Group Ltd. | | 1,554,000 | 1,229,357 |
| Magnificent Hotel Investment L | | 1,896,000 | 46,848 |
| PCCW Ltd. | | 2,945,000 | 1,993,422 |
| Power Assets Holdings Ltd. | | 164,500 | 1,565,068 |
| Sino Land Ltd. | | 930,000 | 1,460,049 |
| Techtronic Industries Co. Ltd. | | 335,500 | 1,257,679 |
| Wheelock and Co. Ltd. | | 243,000 | 1,124,994 |
|
| TOTAL HONG KONG | | | 28,584,516 |
|
| India - 10.0% | | | |
| Adani Ports & Special Economic Zone | | 105,877 | 379,672 |
| Apollo Tyres Ltd. | | 376,894 | 908,681 |
| Bajaj Finserv Ltd. | | 23,752 | 670,576 |
| Bharat Petroleum Corp. Ltd. (a) | | 54,797 | 806,791 |
| Bharti Infratel Ltd. | | 97,958 | 552,941 |
| Cox & Kings India Ltd. (a) | | 186,142 | 523,884 |
| Edelweiss Financial Services Ltd. | | 582,303 | 508,881 |
| Exide Industries Ltd. (a) | | 58,385 | 129,426 |
| HCL Technologies Ltd. | | 79,888 | 902,364 |
| Hexaware Technologies Ltd. | | 147,520 | 535,665 |
| IL&FS Transportation Networks Ltd. | | 92,782 | 104,130 |
| Indian Oil Corp. Ltd. (a) | | 165,622 | 1,080,244 |
| Jain Irrigation Systems Ltd. (a) | | 131,603 | 121,052 |
| JK Tyre & Industries Ltd. (a) | | 343,022 | 434,293 |
| Just Dial Ltd. | | 16,345 | 208,282 |
| LIC Housing Finance Ltd. (a) | | 38,856 | 270,425 |
| Mahindra & Mahindra Ltd. (a) | | 78,993 | 1,582,762 |
| McLeod Russel India Ltd. (a) | | 94,682 | 271,180 |
| NTPC Ltd. | | 475,579 | 997,330 |
| Petronet LNG Ltd. | | 269,968 | 1,071,126 |
| Power Finance Corp. Ltd. | | 208,039 | 561,709 |
| Power Grid Corp. of India Ltd. | | 165,050 | 356,312 |
| Redington India Ltd. (a) | | 147,398 | 240,983 |
| Reliance Capital Ltd. (a) | | 20,100 | 122,415 |
| Reliance Industries Ltd. | | 197,600 | 2,923,298 |
| Shriram City Union Finance Ltd. | | 9,151 | 226,889 |
| Sun Pharmaceutical Industries Ltd. | | 133,254 | 1,627,522 |
| Suzlon Energy Ltd. (a) | | 2,328,254 | 524,007 |
| The Jammu & Kashmir Bank Ltd. | | 305,332 | 315,787 |
| Torrent Pharmaceuticals Ltd. | | 32,031 | 689,680 |
| UPL Ltd. | | 101,887 | 825,060 |
| Vakrangee Ltd. (a) | | 44,068 | 131,025 |
| VST Industries Ltd. (a) | | 11,571 | 284,583 |
| Yes Bank Ltd. (a) | | 145,155 | 2,060,563 |
|
| TOTAL INDIA | | | 22,949,538 |
|
| Indonesia - 1.9% | | | |
| PT ACE Hardware Indonesia Tbk | | 3,485,600 | 244,478 |
| PT Bank Rakyat Indonesia Tbk | | 2,849,200 | 2,236,065 |
| PT Gudang Garam Tbk | | 225,100 | 1,181,997 |
| PT Indofood Sukses Makmur Tbk | | 1,373,100 | 741,836 |
|
| TOTAL INDONESIA | | | 4,404,376 |
|
| Israel - 0.1% | | | |
| Sarine Technologies Ltd. | | 96,600 | 118,519 |
| Japan - 0.8% | | | |
| KDDI Corp. | | 38,900 | 1,120,543 |
| NGK Insulators Ltd. | | 38,000 | 780,389 |
|
| TOTAL JAPAN | | | 1,900,932 |
|
| Korea (South) - 18.4% | | | |
| AMOREPACIFIC Corp. | | 5,313 | 1,889,757 |
| AMOREPACIFIC Group, Inc. | | 7,820 | 1,146,713 |
| BGFretail Co. Ltd. | | 1,360 | 220,796 |
| Daelim Industrial Co. | | 10,094 | 799,115 |
| DGB Financial Group Co. Ltd. | | 71,954 | 575,921 |
| Dongbu Insurance Co. Ltd. | | 25,554 | 1,563,563 |
| Duksan Hi-Metal Co. Ltd. (a) | | 19,218 | 159,021 |
| Fila Korea Ltd. | | 1,381 | 125,362 |
| Hana Financial Group, Inc. | | 29,919 | 669,843 |
| Hyosung Corp. | | 7,775 | 831,333 |
| Hyundai Fire & Marine Insurance Co. Ltd. | | 21,440 | 595,101 |
| Hyundai Mobis | | 8,762 | 1,992,276 |
| Hyundai Motor Co. | | 25,267 | 3,164,785 |
| Hyundai Steel Co. | | 29,547 | 1,622,193 |
| KB Financial Group, Inc. | | 57,114 | 1,737,952 |
| Kiwoom Securities Co. Ltd. | | 5,750 | 340,782 |
| Korea Electric Power Corp. | | 35,446 | 1,914,837 |
| Korea Petro Chemical Industries Co. Ltd. | | 6,662 | 1,369,412 |
| Korea Zinc Co. Ltd. | | 3,080 | 1,332,088 |
| LG Chemical Ltd. | | 6,812 | 1,765,914 |
| LG Household & Health Care Ltd. | | 2,070 | 1,819,443 |
| LS Industrial Systems Ltd. | | 13,820 | 630,882 |
| Poongsan Corp. | | 12,000 | 333,602 |
| Samsung Card Co. Ltd. | | 15,092 | 511,113 |
| Samsung Electronics Co. Ltd. | | 10,594 | 11,512,450 |
| Shinhan Financial Group Co. Ltd. | | 84,306 | 3,074,228 |
| SK Telecom Co. Ltd. | | 3,468 | 626,337 |
|
| TOTAL KOREA (SOUTH) | | | 42,324,819 |
|
| Malaysia - 1.9% | | | |
| AEON Credit Service Bhd | | 45,500 | 153,511 |
| Cahya Mata Sarawak Bhd | | 185,000 | 181,851 |
| Glomac Bhd | | 439,300 | 91,650 |
| Media Prima Bhd | | 965,200 | 348,376 |
| MISC Bhd | | 196,800 | 425,691 |
| Sunway Bhd | | 314,300 | 251,826 |
| Tenaga Nasional Bhd | | 562,400 | 2,067,340 |
| Top Glove Corp. Bhd | | 137,300 | 174,327 |
| YTL Power International Bhd | | 1,972,800 | 757,507 |
|
| TOTAL MALAYSIA | | | 4,452,079 |
|
| Netherlands - 0.2% | | | |
| Gree Electric Appliances, Inc. of Zhuhai ELS (BNP Paribas Warrants Program) (A Shares)warrants 11/24/16 (a)(b) | | 147,900 | 439,082 |
| Hangzhou Hikvision Digital Technology Co. Ltd. ELS (BNP Paribas Warrant Program) warrants 11/27/17 (a)(b) | | 26,600 | 125,192 |
|
| TOTAL NETHERLANDS | | | 564,274 |
|
| Philippines - 1.0% | | | |
| ABS CBN Broadcasting Corp. (depositary receipt) | | 97,800 | 120,600 |
| LT Group, Inc. | | 337,300 | 110,437 |
| Metro Pacific Investments Corp. | | 3,647,600 | 449,794 |
| Metropolitan Bank & Trust Co. | | 626,360 | 1,081,997 |
| Security Bank Corp. | | 135,766 | 490,703 |
|
| TOTAL PHILIPPINES | | | 2,253,531 |
|
| Singapore - 3.8% | | | |
| Boustead Singapore Ltd. | | 178,048 | 103,266 |
| CapitaLand Ltd. | | 410,000 | 948,135 |
| Centurion Corp. Ltd. | | 254,500 | 70,965 |
| CWT Ltd. | | 83,600 | 128,678 |
| Frasers Centrepoint Ltd. | | 120,000 | 149,013 |
| Hyflux Ltd. | | 277,200 | 127,794 |
| Mapletree Industrial (REIT) | | 707,893 | 844,829 |
| Singapore Telecommunications Ltd. | | 729,100 | 2,092,669 |
| United Overseas Bank Ltd. | | 187,700 | 2,595,992 |
| UOL Group Ltd. | | 165,000 | 753,318 |
| Wing Tai Holdings Ltd. | | 540,900 | 754,127 |
| Yoma Strategic Holdings Ltd. (a) | | 357,300 | 143,467 |
|
| TOTAL SINGAPORE | | | 8,712,253 |
|
| Taiwan - 13.6% | | | |
| Advanced Semiconductor Engineering, Inc. | | 1,499,000 | 1,440,158 |
| ASUSTeK Computer, Inc. | | 111,000 | 974,166 |
| Cathay Financial Holding Co. Ltd. | | 1,715,000 | 1,924,550 |
| China Life Insurance Co. Ltd. | | 728,000 | 548,766 |
| E.SUN Financial Holdings Co. Ltd. | | 3,271,748 | 1,812,968 |
| Fubon Financial Holding Co. Ltd. | | 1,640,000 | 1,992,694 |
| Hon Hai Precision Industry Co. Ltd. (Foxconn) | | 1,695,850 | 4,047,613 |
| Mega Financial Holding Co. Ltd. | | 1,224,000 | 867,709 |
| Nanya Technology Corp. | | 90,000 | 105,037 |
| Nien Made Enterprise Co. Ltd. | | 16,852 | 132,508 |
| Novatek Microelectronics Corp. | | 106,000 | 370,801 |
| PChome Online, Inc. | | 23,814 | 252,493 |
| Pegatron Corp. | | 914,000 | 1,932,520 |
| Pou Chen Corp. | | 749,000 | 943,699 |
| Powertech Technology, Inc. | | 176,000 | 356,326 |
| Taiwan Semiconductor Manufacturing Co. Ltd. | | 2,226,393 | 10,213,040 |
| Unified-President Enterprises Corp. | | 860,000 | 1,549,454 |
| Vanguard International Semiconductor Corp. | | 386,000 | 590,896 |
| Wistron NeWeb Corp. | | 173,700 | 451,686 |
| Yuanta Financial Holding Co. Ltd. | | 2,172,321 | 716,194 |
|
| TOTAL TAIWAN | | | 31,223,278 |
|
| Thailand - 2.3% | | | |
| Asian Property Development PCL (For. Reg.) | | 3,487,500 | 599,227 |
| Bangkok Expressway and Metro PCL | | 3,490,714 | 594,781 |
| Intouch Holdings PCL: | | | |
| (For. Reg.) | | 322,401 | 487,018 |
| NVDR | | 38,500 | 58,158 |
| Kasikornbank PCL (For. Reg.) | | 451,900 | 2,161,148 |
| Preuksa Real Estate PCL (For. Reg.) | | 643,800 | 474,738 |
| Thai Beverage PCL | | 1,779,300 | 985,670 |
|
| TOTAL THAILAND | | | 5,360,740 |
|
| United Kingdom - 0.3% | | | |
| Standard Chartered PLC (United Kingdom) | | 77,871 | 628,186 |
| United States of America - 0.7% | | | |
| China Biologic Products, Inc. (a) | | 6,400 | 748,800 |
| Cognizant Technology Solutions Corp. Class A (a) | | 7,700 | 449,449 |
| Las Vegas Sands Corp. | | 11,100 | 501,165 |
|
| TOTAL UNITED STATES OF AMERICA | | | 1,699,414 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $212,919,010) | | | 229,734,664 |
| | | Principal Amount(c) | Value |
|
| Nonconvertible Bonds - 0.0% | | | |
| India - 0.0% | | | |
NTPC Ltd. 8.49% 3/25/25
(Cost $123,312) | | 615,670 | 118,710 |
| | | Shares | Value |
|
| Money Market Funds - 0.3% | | | |
| Fidelity Cash Central Fund, 0.38% (d) | | | |
| (Cost $646,248) | | 646,248 | 646,248 |
| TOTAL INVESTMENT PORTFOLIO - 100.0% | | | |
| (Cost $213,688,570) | | | 230,499,622 |
| NET OTHER ASSETS (LIABILITIES) - 0.0% | | | (72,139) |
| NET ASSETS - 100% | | | $230,427,483 |
Currency Abbreviations
INR – Indian rupee
Security Type Abbreviations
ELS – Equity-Linked Security
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) 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 $564,274 or 0.2% of net assets.
(c) Amount is stated in United States dollars unless otherwise noted.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $1,319 |
| Fidelity Securities Lending Cash Central Fund | 4,325 |
| Total | $5,644 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2016, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Consumer Discretionary | $21,679,006 | $15,505,251 | $6,173,755 | $-- |
| Consumer Staples | 13,183,082 | 11,437,166 | 1,745,916 | -- |
| Energy | 12,052,343 | 9,821,311 | 2,231,032 | -- |
| Financials | 73,593,039 | 32,760,820 | 40,832,219 | -- |
| Health Care | 4,624,232 | 4,277,967 | 346,265 | -- |
| Industrials | 13,742,678 | 4,118,815 | 9,623,863 | -- |
| Information Technology | 52,739,763 | 29,504,544 | 23,235,219 | -- |
| Materials | 11,846,735 | 8,079,602 | 3,767,133 | -- |
| Telecommunication Services | 13,596,830 | 3,190,786 | 10,406,044 | -- |
| Utilities | 12,676,956 | 4,306,283 | 8,370,673 | -- |
| Corporate Bonds | 118,710 | -- | 118,710 | -- |
| Money Market Funds | 646,248 | 646,248 | -- | -- |
| Total Investments in Securities: | $230,499,622 | $123,648,793 | $106,850,829 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2016. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
| Transfers | Total |
| Level 1 to Level 2 | $0 |
| Level 2 to Level 1 | $48,737,769 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | April 30, 2016 (Unaudited) |
| Assets | | |
Investment in securities, at value — See accompanying schedule:
Unaffiliated issuers (cost $213,042,322) | $229,853,374 | |
| Fidelity Central Funds (cost $646,248) | 646,248 | |
| Total Investments (cost $213,688,570) | | $230,499,622 |
| Cash | | 16,992 |
| Foreign currency held at value (cost $72,174) | | 72,413 |
| Receivable for investments sold | | 117,408 |
| Receivable for fund shares sold | | 55,098 |
| Dividends receivable | | 178,609 |
| Interest receivable | | 80 |
| Distributions receivable from Fidelity Central Funds | | 106 |
| Prepaid expenses | | 214 |
| Other receivables | | 136,685 |
| Total assets | | 231,077,227 |
| Liabilities | | |
| Payable for fund shares redeemed | $320,736 | |
| Accrued management fee | 136,449 | |
| Transfer agent fee payable | 49,110 | |
| Distribution and service plan fees payable | 76,871 | |
| Other affiliated payables | 10,107 | |
| Audit fee payable | 37,530 | |
| Other payables and accrued expenses | 18,941 | |
| Total liabilities | | 649,744 |
| Net Assets | | $230,427,483 |
| Net Assets consist of: | | |
| Paid in capital | | $221,048,271 |
| Accumulated net investment loss | | (586,010) |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (6,789,211) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 16,754,433 |
| Net Assets | | $230,427,483 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($111,289,402 ÷ 4,045,838 shares) | | $27.51 |
| Maximum offering price per share (100/94.25 of $27.51) | | $29.19 |
| Class T: | | |
| Net Asset Value and redemption price per share ($33,990,662 ÷ 1,270,089 shares) | | $26.76 |
| Maximum offering price per share (100/96.50 of $26.76) | | $27.73 |
| Class B: | | |
| Net Asset Value and offering price per share ($2,658,035 ÷ 104,293 shares)(a) | | $25.49 |
| Class C: | | |
| Net Asset Value and offering price per share ($43,350,455 ÷ 1,726,044 shares)(a) | | $25.12 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($39,138,929 ÷ 1,382,319 shares) | | $28.31 |
(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.
Statement of Operations
| | | Six months ended April 30, 2016 (Unaudited) |
| Investment Income | | |
| Dividends | | $1,917,733 |
| Interest | | 9,519 |
| Income from Fidelity Central Funds | | 5,644 |
| Income before foreign taxes withheld | | 1,932,896 |
| Less foreign taxes withheld | | (184,341) |
| Total income | | 1,748,555 |
| Expenses | | |
| Management fee | $827,429 | |
| Transfer agent fees | 308,586 | |
| Distribution and service plan fees | 464,410 | |
| Accounting and security lending fees | 61,547 | |
| Custodian fees and expenses | 87,429 | |
| Independent trustees' compensation | 531 | |
| Registration fees | 63,254 | |
| Audit | 60,896 | |
| Legal | 367 | |
| Miscellaneous | 878 | |
| Total expenses before reductions | 1,875,327 | |
| Expense reductions | (1,871) | 1,873,456 |
| Net investment income (loss) | | (124,901) |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (6,229,670) | |
| Foreign currency transactions | (8,979) | |
| Total net realized gain (loss) | | (6,238,649) |
Change in net unrealized appreciation (depreciation) on:
Investment securities (net of decrease in deferred foreign taxes of $234) | (2,620,181) | |
| Assets and liabilities in foreign currencies | (1,134) | |
| Total change in net unrealized appreciation (depreciation) | | (2,621,315) |
| Net gain (loss) | | (8,859,964) |
| Net increase (decrease) in net assets resulting from operations | | $(8,984,865) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended April 30, 2016 (Unaudited) | Year ended October 31, 2015 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $(124,901) | $2,639,231 |
| Net realized gain (loss) | (6,238,649) | 3,695,951 |
| Change in net unrealized appreciation (depreciation) | (2,621,315) | (25,581,869) |
| Net increase (decrease) in net assets resulting from operations | (8,984,865) | (19,246,687) |
| Distributions to shareholders from net investment income | (1,665,857) | (1,398,621) |
| Distributions to shareholders from net realized gain | (2,157,468) | (15,842,060) |
| Total distributions | (3,823,325) | (17,240,681) |
| Share transactions - net increase (decrease) | (26,827,173) | 4,069,053 |
| Redemption fees | 9,137 | 145,305 |
| Total increase (decrease) in net assets | (39,626,226) | (32,273,010) |
| Net Assets | | |
| Beginning of period | 270,053,709 | 302,326,719 |
| End of period (including accumulated net investment loss of $586,010 and undistributed net investment income of $1,204,748, respectively) | $230,427,483 | $270,053,709 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Asia Fund Class A
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| April 30, | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $28.75 | $32.05 | $31.34 | $28.87 | $28.70 | $32.97 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | –B | .31 | .30 | .30 | .34 | .35 |
| Net realized and unrealized gain (loss) | (.79) | (1.76) | 2.00C | 2.59 | 1.37 | (2.62) |
| Total from investment operations | (.79) | (1.45) | 2.30 | 2.89 | 1.71 | (2.27) |
| Distributions from net investment income | (.22) | (.18) | (.26) | (.33) | (.31) | (.20) |
| Distributions from net realized gain | (.23) | (1.67) | (1.33) | (.09) | (1.23) | (1.81) |
| Total distributions | (.45) | (1.86)D | (1.59) | (.42) | (1.54) | (2.01) |
| Redemption fees added to paid in capitalA | –B | .01 | –B | –B | –B | .01 |
| Net asset value, end of period | $27.51 | $28.75 | $32.05 | $31.34 | $28.87 | $28.70 |
| Total ReturnE,F,G | (2.77)% | (4.78)% | 7.70%C | 10.10% | 6.36% | (7.44)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.45%J | 1.37% | 1.42% | 1.41% | 1.42% | 1.39% |
| Expenses net of fee waivers, if any | 1.45%J | 1.37% | 1.42% | 1.41% | 1.42% | 1.39% |
| Expenses net of all reductions | 1.45%J | 1.36% | 1.42% | 1.38% | 1.38% | 1.35% |
| Net investment income (loss) | .03%J | 1.00% | .96% | .99% | 1.24% | 1.12% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $111,289 | $125,528 | $145,184 | $155,104 | $160,427 | $179,346 |
| Portfolio turnover rateK | 51%J | 70% | 91% | 95% | 95% | 119% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C In 2014, a change to the Indian tax rules invalidated a prior ruling that had exempted the Fund from taxes on realized gains. As a result, the fund recorded a tax liability which resulted in a decrease to realized and unrealized gain (loss) per share of $.18 at period end. Excluding this amount, the total return would have been 8.29%.
D Total distributions of $1.86 per share is comprised of distributions from net investment income of $.183 and distributions from net realized gain of $1.674 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Asia Fund Class T
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $27.93 | $31.17 | $30.53 | $28.13 | $27.98 | $32.20 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.04) | .21 | .20 | .20 | .25 | .25 |
| Net realized and unrealized gain (loss) | (.77) | (1.71) | 1.94B | 2.54 | 1.33 | (2.55) |
| Total from investment operations | (.81) | (1.50) | 2.14 | 2.74 | 1.58 | (2.30) |
| Distributions from net investment income | (.13) | (.08) | (.17) | (.25) | (.20) | (.12) |
| Distributions from net realized gain | (.23) | (1.67) | (1.33) | (.09) | (1.23) | (1.81) |
| Total distributions | (.36) | (1.75) | (1.50) | (.34) | (1.43) | (1.93) |
| Redemption fees added to paid in capitalA | –C | .01 | –C | –C | –C | .01 |
| Net asset value, end of period | $26.76 | $27.93 | $31.17 | $30.53 | $28.13 | $27.98 |
| Total ReturnD,E,F | (2.92)% | (5.05)% | 7.34%B | 9.80% | 6.04% | (7.70)% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 1.75%I | 1.68% | 1.73% | 1.70% | 1.70% | 1.70% |
| Expenses net of fee waivers, if any | 1.75%I | 1.68% | 1.73% | 1.70% | 1.70% | 1.69% |
| Expenses net of all reductions | 1.75%I | 1.67% | 1.73% | 1.67% | 1.67% | 1.65% |
| Net investment income (loss) | (.27)%I | .69% | .66% | .70% | .95% | .82% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $33,991 | $37,720 | $44,563 | $47,620 | $49,359 | $55,452 |
| Portfolio turnover rateJ | 51%I | 70% | 91% | 95% | 95% | 119% |
A Calculated based on average shares outstanding during the period.
B In 2014, a change to the Indian tax rules invalidated a prior ruling that had exempted the Fund from taxes on realized gains. As a result, the fund recorded a tax liability which resulted in a decrease to realized and unrealized gain (loss) per share of $.18 at period end. Excluding this amount, the total return would have been 7.93%.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Asia Fund Class B
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $26.56 | $29.63 | $29.06 | $26.77 | $26.62 | $30.72 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.09) | .05 | .05 | .06 | .12 | .10 |
| Net realized and unrealized gain (loss) | (.75) | (1.61) | 1.85B | 2.41 | 1.26 | (2.44) |
| Total from investment operations | (.84) | (1.56) | 1.90 | 2.47 | 1.38 | (2.34) |
| Distributions from net investment income | – | – | – | (.09) | – | – |
| Distributions from net realized gain | (.23) | (1.52) | (1.33) | (.09) | (1.23) | (1.77) |
| Total distributions | (.23) | (1.52) | (1.33) | (.18) | (1.23) | (1.77) |
| Redemption fees added to paid in capitalA | –C | .01 | –C | –C | –C | .01 |
| Net asset value, end of period | $25.49 | $26.56 | $29.63 | $29.06 | $26.77 | $26.62 |
| Total ReturnD,E,F | (3.18)% | (5.51)% | 6.84%B | 9.27% | 5.51% | (8.16)% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 2.23%I | 2.18% | 2.22% | 2.20% | 2.19% | 2.19% |
| Expenses net of fee waivers, if any | 2.23%I | 2.18% | 2.22% | 2.20% | 2.19% | 2.18% |
| Expenses net of all reductions | 2.23%I | 2.18% | 2.22% | 2.17% | 2.16% | 2.15% |
| Net investment income (loss) | (.76)%I | .19% | .16% | .20% | .46% | .32% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $2,658 | $3,585 | $6,661 | $10,194 | $15,823 | $20,831 |
| Portfolio turnover rateJ | 51%I | 70% | 91% | 95% | 95% | 119% |
A Calculated based on average shares outstanding during the period.
B In 2014, a change to the Indian tax rules invalidated a prior ruling that had exempted the Fund from taxes on realized gains. As a result, the fund recorded a tax liability which resulted in a decrease to realized and unrealized gain (loss) per share of $.17 at period end. Excluding this amount, the total return would have been 7.43%.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Asia Fund Class C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $26.17 | $29.30 | $28.78 | $26.53 | $26.44 | $30.58 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.09) | .07 | .06 | .07 | .13 | .11 |
| Net realized and unrealized gain (loss) | (.72) | (1.59) | 1.82B | 2.39 | 1.25 | (2.41) |
| Total from investment operations | (.81) | (1.52) | 1.88 | 2.46 | 1.38 | (2.30) |
| Distributions from net investment income | (.01) | – | (.03) | (.12) | (.06) | (.04) |
| Distributions from net realized gain | (.23) | (1.62) | (1.33) | (.09) | (1.23) | (1.81) |
| Total distributions | (.24) | (1.62) | (1.36) | (.21) | (1.29) | (1.85) |
| Redemption fees added to paid in capitalA | –C | .01 | –C | –C | –C | .01 |
| Net asset value, end of period | $25.12 | $26.17 | $29.30 | $28.78 | $26.53 | $26.44 |
| Total ReturnD,E,F | (3.12)% | (5.46)% | 6.85%B | 9.33% | 5.57% | (8.10)% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 2.18%I | 2.11% | 2.17% | 2.16% | 2.16% | 2.13% |
| Expenses net of fee waivers, if any | 2.18%I | 2.11% | 2.17% | 2.16% | 2.16% | 2.13% |
| Expenses net of all reductions | 2.18%I | 2.10% | 2.17% | 2.12% | 2.13% | 2.10% |
| Net investment income (loss) | (.71)%I | .26% | .22% | .24% | .49% | .37% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $43,350 | $51,651 | $57,226 | $61,824 | $67,074 | $78,939 |
| Portfolio turnover rateJ | 51%I | 70% | 91% | 95% | 95% | 119% |
A Calculated based on average shares outstanding during the period.
B In 2014, a change to the Indian tax rules invalidated a prior ruling that had exempted the Fund from taxes on realized gains. As a result, the fund recorded a tax liability which resulted in a decrease to realized and unrealized gain (loss) per share of $.17 at period end. Excluding this amount, the total return would have been 7.44%.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Asia Fund Class I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $29.63 | $33.00 | $32.24 | $29.67 | $29.49 | $33.80 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .05 | .41 | .40 | .40 | .44 | .46 |
| Net realized and unrealized gain (loss) | (.82) | (1.81) | 2.04B | 2.68 | 1.39 | (2.69) |
| Total from investment operations | (.77) | (1.40) | 2.44 | 3.08 | 1.83 | (2.23) |
| Distributions from net investment income | (.32) | (.31) | (.35) | (.41) | (.42) | (.29) |
| Distributions from net realized gain | (.23) | (1.67) | (1.33) | (.09) | (1.23) | (1.81) |
| Total distributions | (.55) | (1.98) | (1.68) | (.51)C | (1.65) | (2.09)D |
| Redemption fees added to paid in capitalA | –E | .01 | –E | –E | –E | .01 |
| Net asset value, end of period | $28.31 | $29.63 | $33.00 | $32.24 | $29.67 | $29.49 |
| Total ReturnF,G | (2.63)% | (4.47)% | 7.98%B | 10.47% | 6.64% | (7.13)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.13%J | 1.07% | 1.12% | 1.11% | 1.11% | 1.10% |
| Expenses net of fee waivers, if any | 1.13%J | 1.07% | 1.12% | 1.11% | 1.11% | 1.10% |
| Expenses net of all reductions | 1.13%J | 1.06% | 1.12% | 1.08% | 1.08% | 1.06% |
| Net investment income (loss) | .34%J | 1.30% | 1.26% | 1.29% | 1.54% | 1.41% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $39,139 | $51,569 | $48,693 | $36,310 | $40,026 | $49,888 |
| Portfolio turnover rateK | 51%J | 70% | 91% | 95% | 95% | 119% |
A Calculated based on average shares outstanding during the period.
B In 2014, a change to the Indian tax rules invalidated a prior ruling that had exempted the Fund from taxes on realized gains. As a result, the fund recorded a tax liability which resulted in a decrease to realized and unrealized gain (loss) per share of $.19 at period end. Excluding this amount, the total return would have been 8.57%.
C Total distributions of $.51 per share is comprised of distributions from net investment income of $.413 and distributions from net realized gain of $.092 per share.
D 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.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2016
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 Class I shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a maximum holding period of seven years from the initial date of purchase. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective on or about July 1, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of April 30, 2016, including information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to certain foreign taxes, passive foreign investment companies (PFIC) and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
| Gross unrealized appreciation | $40,693,195 |
| Gross unrealized depreciation | (24,056,952) |
| Net unrealized appreciation (depreciation) on securities | $16,636,243 |
| Tax cost | $213,863,379 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.50% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $60,431,417 and $87,373,839, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .70% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
| Class A | -% | .25% | $140,033 | $– |
| Class T | .25% | .25% | 85,586 | – |
| Class B | .75% | .25% | 14,987 | 11,240 |
| Class C | .75% | .25% | 223,804 | 14,916 |
| | | | $464,410 | $26,156 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $8,257 |
| Class T | 2,581 |
| Class B(a) | 1,039 |
| Class C(a) | 2,011 |
| | $13,888 |
(a) When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| | Amount | % of
Class-Level Average
Net Assets(a) |
| Class A | $149,546 | .27 |
| Class T | 54,398 | .32 |
| Class B | 4,551 | .30 |
| Class C | 56,930 | .25 |
| Class I | 43,161 | .20 |
| | $ 308,586 | |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $140 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $212 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $4,325. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $968 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $903.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| From net investment income | | |
| Class A | $942,866 | $822,279 |
| Class T | 171,419 | 110,077 |
| Class C | 15,517 | – |
| Class I | 536,055 | 466,265 |
| Total | $1,665,857 | $1,398,621 |
| From net realized gain | | |
| Class A | $985,723 | $7,521,830 |
| Class T | 305,631 | 2,362,422 |
| Class B | 29,826 | 322,901 |
| Class C | 446,122 | 3,108,927 |
| Class I | 390,166 | 2,525,980 |
| Total | $2,157,468 | $15,842,060 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| Class A | | | | |
| Shares sold | 136,114 | 687,127 | $3,637,496 | $21,712,763 |
| Reinvestment of distributions | 63,044 | 249,985 | 1,757,041 | 7,544,560 |
| Shares redeemed | (519,254) | (1,101,494) | (13,926,667) | (33,216,845) |
| Net increase (decrease) | (320,096) | (164,382) | $(8,532,130) | $(3,959,522) |
| Class T | | | | |
| Shares sold | 39,660 | 134,384 | $1,031,290 | $4,095,325 |
| Reinvestment of distributions | 17,276 | 82,920 | 469,050 | 2,437,846 |
| Shares redeemed | (137,302) | (296,419) | (3,553,002) | (8,755,323) |
| Net increase (decrease) | (80,366) | (79,115) | $(2,052,662) | $(2,222,152) |
| Class B | | | | |
| Shares sold | 862 | 4,883 | $22,474 | $142,572 |
| Reinvestment of distributions | 1,009 | 10,090 | 26,127 | 283,216 |
| Shares redeemed | (32,557) | (104,780) | (808,389) | (2,930,407) |
| Net increase (decrease) | (30,686) | (89,807) | $(759,788) | $(2,504,619) |
| Class C | | | | |
| Shares sold | 57,428 | 485,886 | $1,427,970 | $14,051,553 |
| Reinvestment of distributions | 15,928 | 98,091 | 406,480 | 2,712,206 |
| Shares redeemed | (321,034) | (563,292) | (7,758,326) | (15,169,240) |
| Net increase (decrease) | (247,678) | 20,685 | $(5,923,876) | $1,594,519 |
| Class I | | | | |
| Shares sold | 181,641 | 1,486,922 | $4,981,851 | $48,941,250 |
| Reinvestment of distributions | 25,883 | 81,888 | 741,553 | 2,540,162 |
| Shares redeemed | (565,765) | (1,303,858) | (15,282,121) | (40,320,585) |
| Net increase (decrease) | (358,241) | 264,952 | $(9,558,717) | $11,160,827 |
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.
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, 2015 to April 30, 2016).
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.
| | Annualized Expense Ratio-A | Beginning
Account Value
November 1, 2015 | Ending
Account Value
April 30, 2016 | Expenses Paid
During Period-B
November 1, 2015
to April 30, 2016 |
| Class A | 1.45% | | | |
| Actual | | $1,000.00 | $972.30 | $7.11 |
| Hypothetical-C | | $1,000.00 | $1,017.65 | $7.27 |
| Class T | 1.75% | | | |
| Actual | | $1,000.00 | $970.80 | $8.58 |
| Hypothetical-C | | $1,000.00 | $1,016.16 | $8.77 |
| Class B | 2.23% | | | |
| Actual | | $1,000.00 | $968.20 | $10.91 |
| Hypothetical-C | | $1,000.00 | $1,013.77 | $11.17 |
| Class C | 2.18% | | | |
| Actual | | $1,000.00 | $968.80 | $10.67 |
| Hypothetical-C | | $1,000.00 | $1,014.02 | $10.92 |
| Class I | 1.13% | | | |
| Actual | | $1,000.00 | $973.70 | $5.55 |
| Hypothetical-C | | $1,000.00 | $1,019.24 | $5.67 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
C 5% return per year before expenses
AEAI-SANN-0616
1.741954.116
Fidelity Advisor® International Capital Appreciation Fund
Class A, Class T, Class B and Class C
Semi-Annual Report April 30, 2016 |
|
Contents
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. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Five Stocks as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Nestle SA (Switzerland, Food Products) | 1.8 | 0.0 |
| British American Tobacco PLC (United Kingdom) (United Kingdom, Tobacco) | 1.2 | 0.0 |
| Unilever PLC (United Kingdom, Personal Products) | 1.2 | 0.0 |
| Novo Nordisk A/S Series B sponsored ADR (Denmark, Pharmaceuticals) | 1.1 | 1.1 |
| Tencent Holdings Ltd. (Cayman Islands, Internet Software & Services) | 1.1 | 1.0 |
| | 6.4 | |
Top Five Market Sectors as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Information Technology | 18.7 | 17.2 |
| Consumer Staples | 16.8 | 4.3 |
| Industrials | 14.8 | 17.5 |
| Consumer Discretionary | 14.4 | 23.4 |
| Health Care | 11.6 | 16.9 |
Top Five Countries as of April 30, 2016
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| United States of America | 20.6 | 18.4 |
| United Kingdom | 14.6 | 17.2 |
| Japan | 9.4 | 6.5 |
| Germany | 8.8 | 6.4 |
| Ireland | 4.4 | 4.2 |
Percentages are adjusted for the effect of futures contracts, if applicable.
Asset Allocation (% of fund's net assets)
| As of April 30, 2016 |
| | Stocks | 97.2% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 2.8% |
| As of October 31, 2015 |
| | Stocks | 98.7% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 1.3% |
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments April 30, 2016 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 96.8% | | | |
| | | Shares | Value |
| Australia - 3.1% | | | |
| Amcor Ltd. (a) | | 129,219 | $1,513,076 |
| CSL Ltd. | | 20,646 | 1,651,135 |
| Ramsay Health Care Ltd. | | 26,314 | 1,299,510 |
| realestate.com.au Ltd. | | 29,111 | 1,127,091 |
| Sydney Airport unit | | 234,084 | 1,212,083 |
| Transurban Group unit | | 157,645 | 1,388,041 |
|
| TOTAL AUSTRALIA | | | 8,190,936 |
|
| Bailiwick of Jersey - 1.7% | | | |
| Experian PLC | | 83,800 | 1,531,779 |
| Wolseley PLC | | 24,084 | 1,348,995 |
| WPP PLC | | 70,100 | 1,637,717 |
|
| TOTAL BAILIWICK OF JERSEY | | | 4,518,491 |
|
| Belgium - 1.1% | | | |
| Anheuser-Busch InBev SA NV | | 22,820 | 2,824,657 |
| Bermuda - 0.9% | | | |
| Axalta Coating Systems (a) | | 44,060 | 1,254,388 |
| Markit Ltd. (a) | | 35,600 | 1,242,084 |
|
| TOTAL BERMUDA | | | 2,496,472 |
|
| Canada - 2.2% | | | |
| Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | | 30,560 | 1,339,603 |
| Canadian National Railway Co. | | 30,070 | 1,851,605 |
| CCL Industries, Inc. Class B | | 7,390 | 1,353,194 |
| Constellation Software, Inc. | | 3,510 | 1,371,717 |
|
| TOTAL CANADA | | | 5,916,119 |
|
| Cayman Islands - 2.4% | | | |
| Alibaba Group Holding Ltd. sponsored ADR (a) | | 24,130 | 1,856,562 |
| Baidu.com, Inc. sponsored ADR (a) | | 8,260 | 1,604,918 |
| Tencent Holdings Ltd. | | 139,600 | 2,840,625 |
|
| TOTAL CAYMAN ISLANDS | | | 6,302,105 |
|
| Denmark - 1.6% | | | |
| Coloplast A/S Series B | | 16,830 | 1,260,828 |
| Novo Nordisk A/S Series B sponsored ADR | | 52,780 | 2,944,596 |
|
| TOTAL DENMARK | | | 4,205,424 |
|
| Finland - 0.5% | | | |
| Sampo Oyj (A Shares) | | 33,600 | 1,467,001 |
| France - 3.4% | | | |
| Capgemini SA | | 14,900 | 1,391,003 |
| Dassault Systemes SA | | 16,900 | 1,321,697 |
| Essilor International SA | | 11,840 | 1,532,663 |
| L'Oreal SA (b) | | 10,100 | 1,832,475 |
| Sodexo SA | | 12,460 | 1,258,235 |
| VINCI SA | | 23,500 | 1,755,522 |
|
| TOTAL FRANCE | | | 9,091,595 |
|
| Germany - 8.4% | | | |
| adidas AG | | 13,700 | 1,766,377 |
| Axel Springer Verlag AG | | 23,000 | 1,284,151 |
| Bayer AG | | 23,520 | 2,713,356 |
| CTS Eventim AG | | 38,021 | 1,331,765 |
| Fresenius Medical Care AG & Co. KGaA | | 16,100 | 1,401,297 |
| Fresenius SE & Co. KGaA | | 23,600 | 1,716,512 |
| Henkel AG & Co. KGaA | | 16,213 | 1,647,245 |
| ProSiebenSat.1 Media AG | | 26,590 | 1,355,495 |
| SAP AG | | 30,142 | 2,364,973 |
| Scout24 Holding GmbH (a) | | 37,200 | 1,363,706 |
| Stroer Out-of-Home Media AG (b) | | 25,800 | 1,270,318 |
| Symrise AG | | 20,500 | 1,358,178 |
| United Internet AG | | 26,889 | 1,312,700 |
| Wirecard AG (b) | | 35,000 | 1,511,495 |
|
| TOTAL GERMANY | | | 22,397,568 |
|
| Hong Kong - 1.4% | | | |
| AIA Group Ltd. | | 403,600 | 2,415,387 |
| Techtronic Industries Co. Ltd. | | 333,500 | 1,250,181 |
|
| TOTAL HONG KONG | | | 3,665,568 |
|
| India - 2.9% | | | |
| Amara Raja Batteries Ltd. | | 79,686 | 1,146,666 |
| Asian Paints India Ltd. | | 94,690 | 1,234,845 |
| GlaxoSmithKline Consumer Healthcare Ltd. (a) | | 12,839 | 1,139,913 |
| HDFC Bank Ltd. (a) | | 58,721 | 1,193,612 |
| Housing Development Finance Corp. Ltd. | | 99,724 | 1,634,080 |
| Tata Consultancy Services Ltd. | | 37,398 | 1,427,503 |
|
| TOTAL INDIA | | | 7,776,619 |
|
| Indonesia - 0.5% | | | |
| PT Bank Central Asia Tbk | | 1,359,800 | 1,345,571 |
| Ireland - 4.4% | | | |
| Accenture PLC Class A | | 11,110 | 1,254,541 |
| Allegion PLC | | 19,050 | 1,246,823 |
| Allergan PLC (a) | | 5,860 | 1,269,042 |
| CRH PLC | | 56,100 | 1,632,673 |
| Kerry Group PLC Class A | | 14,120 | 1,259,010 |
| Kingspan Group PLC (Ireland) | | 52,760 | 1,389,495 |
| Medtronic PLC | | 15,680 | 1,241,072 |
| Paddy Power PLC (Ireland) | | 10,862 | 1,455,813 |
| Ryanair Holdings PLC sponsored ADR | | 14,249 | 1,153,457 |
|
| TOTAL IRELAND | | | 11,901,926 |
|
| Isle of Man - 0.5% | | | |
| Playtech Ltd. | | 110,196 | 1,295,349 |
| Israel - 0.5% | | | |
| Frutarom Industries Ltd. | | 24,300 | 1,245,420 |
| Italy - 1.0% | | | |
| Atlantia SpA | | 51,388 | 1,431,033 |
| Recordati SpA | | 48,021 | 1,220,149 |
|
| TOTAL ITALY | | | 2,651,182 |
|
| Japan - 9.4% | | | |
| Astellas Pharma, Inc. | | 126,400 | 1,704,200 |
| Daito Trust Construction Co. Ltd. | | 9,400 | 1,329,463 |
| Dentsu, Inc. | | 29,900 | 1,519,189 |
| Hoya Corp. | | 37,600 | 1,439,865 |
| Japan Tobacco, Inc. | | 45,500 | 1,859,036 |
| Kansai Paint Co. Ltd. | | 76,300 | 1,334,461 |
| Kao Corp. | | 28,900 | 1,598,661 |
| KDDI Corp. | | 74,000 | 2,131,624 |
| Keyence Corp. | | 2,897 | 1,736,442 |
| Misumi Group, Inc. | | 85,700 | 1,183,498 |
| Nippon Paint Holdings Co. Ltd. | | 52,100 | 1,367,984 |
| Nippon Telegraph & Telephone Corp. | | 39,000 | 1,745,263 |
| OBIC Co. Ltd. | | 23,700 | 1,245,694 |
| Olympus Corp. | | 35,200 | 1,371,273 |
| Sundrug Co. Ltd. | | 15,900 | 1,129,787 |
| Tsuruha Holdings, Inc. | | 12,500 | 1,198,945 |
| Unicharm Corp. | | 59,400 | 1,227,862 |
|
| TOTAL JAPAN | | | 25,123,247 |
|
| Korea (South) - 0.5% | | | |
| LG Household & Health Care Ltd. | | 1,617 | 1,421,275 |
| Luxembourg - 0.5% | | | |
| Eurofins Scientific SA | | 3,620 | 1,343,214 |
| Mexico - 1.9% | | | |
| Grupo Aeroportuario del Pacifico S.A.B. de CV Series B | | 141,500 | 1,333,195 |
| Grupo Aeroportuario del Sureste S.A.B. de CV Series B | | 80,845 | 1,241,528 |
| Grupo Aeroportuario Norte S.A.B. de CV | | 221,003 | 1,278,902 |
| Megacable Holdings S.A.B. de CV unit | | 265,400 | 1,225,601 |
|
| TOTAL MEXICO | | | 5,079,226 |
|
| Netherlands - 1.1% | | | |
| Koninklijke Ahold NV | | 62,536 | 1,360,530 |
| RELX NV | | 97,378 | 1,634,072 |
|
| TOTAL NETHERLANDS | | | 2,994,602 |
|
| Philippines - 2.3% | | | |
| Ayala Corp. | | 78,460 | 1,286,120 |
| Ayala Land, Inc. | | 1,648,100 | 1,214,131 |
| GT Capital Holdings, Inc. | | 40,490 | 1,176,780 |
| SM Investments Corp. | | 62,515 | 1,254,686 |
| SM Prime Holdings, Inc. | | 2,558,000 | 1,231,821 |
|
| TOTAL PHILIPPINES | | | 6,163,538 |
|
| South Africa - 0.8% | | | |
| Naspers Ltd. Class N | | 14,980 | 2,055,407 |
| Spain - 1.6% | | | |
| Aena SA (a) | | 10,030 | 1,430,438 |
| Amadeus IT Holding SA Class A | | 34,960 | 1,590,830 |
| Grifols SA ADR | | 82,310 | 1,293,913 |
|
| TOTAL SPAIN | | | 4,315,181 |
|
| Sweden - 1.7% | | | |
| ASSA ABLOY AB (B Shares) | | 79,818 | 1,673,798 |
| Hexagon AB (B Shares) | | 37,000 | 1,475,310 |
| Svenska Cellulosa AB (SCA) (B Shares) | | 44,200 | 1,391,974 |
|
| TOTAL SWEDEN | | | 4,541,082 |
|
| Switzerland - 3.9% | | | |
| Geberit AG (Reg.) | | 3,680 | 1,412,847 |
| Givaudan SA | | 705 | 1,388,982 |
| Nestle SA | | 64,949 | 4,847,770 |
| Partners Group Holding AG | | 3,350 | 1,379,391 |
| Sika AG | | 354 | 1,506,705 |
|
| TOTAL SWITZERLAND | | | 10,535,695 |
|
| Taiwan - 1.0% | | | |
| Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | | 115,880 | 2,733,609 |
| Thailand - 0.4% | | | |
| Airports of Thailand PCL (For. Reg.) | | 102,800 | 1,153,998 |
| United Kingdom - 14.6% | | | |
| Aon PLC | | 11,750 | 1,235,160 |
| Auto Trader Group PLC | | 258,100 | 1,414,211 |
| British American Tobacco PLC (United Kingdom) | | 51,500 | 3,140,063 |
| Bunzl PLC | | 45,400 | 1,352,595 |
| Compass Group PLC | | 89,241 | 1,589,238 |
| Dignity PLC | | 34,967 | 1,246,646 |
| Diploma PLC | | 107,590 | 1,149,956 |
| Essentra PLC | | 103,500 | 1,227,980 |
| Halma PLC | | 92,200 | 1,201,685 |
| Hargreaves Lansdown PLC | | 66,400 | 1,247,682 |
| Howden Joinery Group PLC | | 210,303 | 1,517,984 |
| Imperial Tobacco Group PLC | | 38,333 | 2,082,742 |
| Intertek Group PLC | | 29,500 | 1,403,895 |
| ITV PLC | | 424,000 | 1,395,176 |
| London Stock Exchange Group PLC | | 33,863 | 1,342,363 |
| Moneysupermarket.com Group PLC | | 291,200 | 1,335,603 |
| Persimmon PLC | | 50,400 | 1,463,266 |
| Provident Financial PLC | | 31,000 | 1,319,915 |
| Prudential PLC | | 101,366 | 2,000,918 |
| Reckitt Benckiser Group PLC | | 22,130 | 2,155,880 |
| Rightmove PLC | | 22,430 | 1,264,405 |
| Sage Group PLC | | 145,100 | 1,255,116 |
| St. James's Place Capital PLC | | 104,419 | 1,322,798 |
| Unilever PLC | | 69,800 | 3,115,232 |
| Worldpay Group PLC (a) | | 366,200 | 1,428,110 |
|
| TOTAL UNITED KINGDOM | | | 39,208,619 |
|
| United States of America - 20.6% | | | |
| A.O. Smith Corp. | | 16,197 | 1,250,732 |
| Acuity Brands, Inc. | | 5,020 | 1,224,328 |
| Adobe Systems, Inc. (a) | | 12,800 | 1,206,016 |
| Alphabet, Inc. Class C | | 1,670 | 1,157,327 |
| Altria Group, Inc. | | 20,270 | 1,271,132 |
| Amazon.com, Inc. (a) | | 2,110 | 1,391,735 |
| Amphenol Corp. Class A | | 21,278 | 1,187,951 |
| AutoZone, Inc. (a) | | 1,441 | 1,102,696 |
| Cerner Corp. (a) | | 22,100 | 1,240,694 |
| Constellation Brands, Inc. Class A (sub. vtg.) | | 8,080 | 1,260,965 |
| Danaher Corp. | | 12,400 | 1,199,700 |
| Domino's Pizza, Inc. | | 8,610 | 1,040,777 |
| Ecolab, Inc. | | 11,400 | 1,310,772 |
| Equifax, Inc. | | 10,400 | 1,250,600 |
| Estee Lauder Companies, Inc. Class A | | 11,480 | 1,100,588 |
| Facebook, Inc. Class A (a) | | 11,000 | 1,293,380 |
| FactSet Research Systems, Inc. | | 8,180 | 1,233,135 |
| Fiserv, Inc. (a) | | 10,909 | 1,066,027 |
| FleetCor Technologies, Inc. (a) | | 8,520 | 1,317,874 |
| Gartner, Inc. Class A (a) | | 14,210 | 1,238,686 |
| HEICO Corp. Class A | | 26,580 | 1,360,364 |
| Henry Schein, Inc. (a) | | 6,350 | 1,071,245 |
| Home Depot, Inc. | | 9,140 | 1,223,755 |
| International Flavors & Fragrances, Inc. | | 10,460 | 1,249,656 |
| Kimberly-Clark Corp. | | 9,700 | 1,214,343 |
| MasterCard, Inc. Class A | | 13,700 | 1,328,763 |
| McGraw Hill Financial, Inc. | | 12,794 | 1,367,039 |
| Mettler-Toledo International, Inc. (a) | | 3,530 | 1,263,564 |
| Molson Coors Brewing Co. Class B | | 12,340 | 1,180,074 |
| Moody's Corp. | | 12,480 | 1,194,586 |
| MSCI, Inc. Class A | | 17,360 | 1,318,318 |
| NIKE, Inc. Class B | | 21,330 | 1,257,190 |
| O'Reilly Automotive, Inc. (a) | | 4,330 | 1,137,404 |
| Philip Morris International, Inc. | | 11,480 | 1,126,418 |
| PPG Industries, Inc. | | 11,440 | 1,262,862 |
| Reynolds American, Inc. | | 25,590 | 1,269,264 |
| ServiceMaster Global Holdings, Inc. (a) | | 33,380 | 1,279,122 |
| Sherwin-Williams Co. | | 4,120 | 1,183,717 |
| SS&C Technologies Holdings, Inc. | | 19,870 | 1,215,051 |
| Starbucks Corp. | | 20,550 | 1,155,527 |
| The Walt Disney Co. | | 12,643 | 1,305,516 |
| Thermo Fisher Scientific, Inc. | | 8,300 | 1,197,275 |
| TransDigm Group, Inc. (a) | | 5,050 | 1,150,744 |
| Verisk Analytics, Inc. (a) | | 15,710 | 1,218,782 |
| Visa, Inc. Class A | | 16,520 | 1,276,005 |
|
| TOTAL UNITED STATES OF AMERICA | | | 55,151,699 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $239,586,488) | | | 259,112,395 |
|
| Nonconvertible Preferred Stocks - 0.4% | | | |
| Germany - 0.4% | | | |
| Sartorius AG (non-vtg.) | | | |
| (Cost $809,758) | | 4,797 | 1,183,425 |
|
| Money Market Funds - 3.8% | | | |
| Fidelity Cash Central Fund, 0.38% (c) | | 6,134,825 | 6,134,825 |
| Fidelity Securities Lending Cash Central Fund, 0.42% (c)(d) | | 4,002,365 | 4,002,365 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $10,137,190) | | | 10,137,190 |
| TOTAL INVESTMENT PORTFOLIO - 101.0% | | | |
| (Cost $250,533,436) | | | 270,433,010 |
| NET OTHER ASSETS (LIABILITIES) - (1.0)% | | | (2,725,826) |
| NET ASSETS - 100% | | | $267,707,184 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
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 | $4,260 |
| Fidelity Securities Lending Cash Central Fund | 34,527 |
| Total | $38,787 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2016, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Consumer Discretionary | $38,277,444 | $32,281,119 | $5,996,325 | $-- |
| Consumer Staples | 44,995,444 | 27,837,440 | 17,158,004 | -- |
| Financials | 30,497,355 | 23,557,975 | 6,939,380 | -- |
| Health Care | 31,358,828 | 24,181,365 | 7,177,463 | -- |
| Industrials | 39,980,085 | 37,447,592 | 2,532,493 | -- |
| Information Technology | 49,884,884 | 41,697,150 | 8,187,734 | -- |
| Materials | 21,424,893 | 17,089,775 | 4,335,118 | -- |
| Telecommunication Services | 3,876,887 | -- | 3,876,887 | -- |
| Money Market Funds | 10,137,190 | 10,137,190 | -- | -- |
| Total Investments in Securities: | $270,433,010 | $214,229,606 | $56,203,404 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2016. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
| Transfers | Total |
| Level 1 to Level 2 | $1,135,724 |
| Level 2 to Level 1 | $20,318,074 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | April 30, 2016 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $3,729,287) — See accompanying schedule:
Unaffiliated issuers (cost $240,396,246) | $260,295,820 | |
| Fidelity Central Funds (cost $10,137,190) | 10,137,190 | |
| Total Investments (cost $250,533,436) | | $270,433,010 |
| Foreign currency held at value (cost $21,454) | | 21,859 |
| Receivable for fund shares sold | | 883,659 |
| Dividends receivable | | 972,570 |
| Distributions receivable from Fidelity Central Funds | | 21,531 |
| Prepaid expenses | | 105 |
| Receivable from investment adviser for expense reductions | | 6,558 |
| Other receivables | | 291,493 |
| Total assets | | 272,630,785 |
| Liabilities | | |
| Payable for fund shares redeemed | 525,361 | |
| Accrued management fee | 184,452 | |
| Distribution and service plan fees payable | 75,853 | |
| Other affiliated payables | 59,147 | |
| Other payables and accrued expenses | 76,423 | |
| Collateral on securities loaned, at value | 4,002,365 | |
| Total liabilities | | 4,923,601 |
| Net Assets | | $267,707,184 |
| Net Assets consist of: | | |
| Paid in capital | | $320,463,510 |
| Undistributed net investment income | | 206,906 |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (72,764,138) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 19,800,906 |
| Net Assets | | $267,707,184 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($94,008,554 ÷ 6,179,026 shares) | | $15.21 |
| Maximum offering price per share (100/94.25 of $15.21) | | $16.14 |
| Class T: | | |
| Net Asset Value and redemption price per share ($62,076,038 ÷ 4,168,775 shares) | | $14.89 |
| Maximum offering price per share (100/96.50 of $14.89) | | $15.43 |
| Class B: | | |
| Net Asset Value and offering price per share ($659,051 ÷ 48,227 shares)(a) | | $13.67 |
| Class C: | | |
| Net Asset Value and offering price per share ($36,437,936 ÷ 2,676,696 shares)(a) | | $13.61 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($74,525,605 ÷ 4,593,378 shares) | | $16.22 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| | | Six months ended April 30, 2016 (Unaudited) |
| Investment Income | | |
| Dividends | | $2,325,139 |
| Income from Fidelity Central Funds | | 38,787 |
| Income before foreign taxes withheld | | 2,363,926 |
| Less foreign taxes withheld | | (179,889) |
| Total income | | 2,184,037 |
| Expenses | | |
| Management fee | | |
| Basic fee | $889,864 | |
| Performance adjustment | 176,359 | |
| Transfer agent fees | 290,393 | |
| Distribution and service plan fees | 438,097 | |
| Accounting and security lending fees | 66,161 | |
| Custodian fees and expenses | 119,080 | |
| Independent trustees' compensation | 550 | |
| Registration fees | 54,243 | |
| Audit | 54,783 | |
| Legal | 1,197 | |
| Interest | 658 | |
| Miscellaneous | 850 | |
| Total expenses before reductions | 2,092,235 | |
| Expense reductions | (134,547) | 1,957,688 |
| Net investment income (loss) | | 226,349 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (7,255,430) | |
| Foreign currency transactions | (34,977) | |
| Total net realized gain (loss) | | (7,290,407) |
Change in net unrealized appreciation (depreciation) on:
Investment securities (net of increase in deferred foreign taxes of $5,776) | 5,542,067 | |
| Assets and liabilities in foreign currencies | 17,077 | |
| Total change in net unrealized appreciation (depreciation) | | 5,559,144 |
| Net gain (loss) | | (1,731,263) |
| Net increase (decrease) in net assets resulting from operations | | $(1,504,914) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended April 30, 2016 (Unaudited) | Year ended October 31, 2015 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $226,349 | $404,279 |
| Net realized gain (loss) | (7,290,407) | 3,579,204 |
| Change in net unrealized appreciation (depreciation) | 5,559,144 | 743,867 |
| Net increase (decrease) in net assets resulting from operations | (1,504,914) | 4,727,350 |
| Distributions to shareholders from net investment income | (237,879) | (176,462) |
| Share transactions - net increase (decrease) | 9,424,526 | 104,495,853 |
| Redemption fees | 6,243 | 14,747 |
| Total increase (decrease) in net assets | 7,687,976 | 109,061,488 |
| Net Assets | | |
| Beginning of period | 260,019,208 | 150,957,720 |
| End of period (including undistributed net investment income of $206,906 and undistributed net investment income of $218,436, respectively) | $267,707,184 | $260,019,208 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor International Capital Appreciation Fund Class A
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $15.25 | $14.77 | $13.96 | $11.25 | $10.21 | $10.85 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .02 | .05 | .06 | .07 | .08 | .08B |
| Net realized and unrealized gain (loss) | (.05) | .46 | .82 | 2.73 | 1.05 | (.53) |
| Total from investment operations | (.03) | .51 | .88 | 2.80 | 1.13 | (.45) |
| Distributions from net investment income | (.01) | (.03) | (.07) | (.09) | (.09) | (.08) |
| Distributions from net realized gain | – | – | – | – | (.01) | (.12) |
| Total distributions | (.01) | (.03) | (.07) | (.09) | (.09)C | (.19)D |
| Redemption fees added to paid in capitalA,E | – | – | – | – | – | – |
| Net asset value, end of period | $15.21 | $15.25 | $14.77 | $13.96 | $11.25 | $10.21 |
| Total ReturnF,G,H | (.21)% | 3.46% | 6.31% | 24.99% | 11.19% | (4.25)% |
| Ratios to Average Net AssetsI,J | | | | | | |
| Expenses before reductions | 1.56%K | 1.58% | 1.73% | 1.74% | 1.78% | 1.64% |
| Expenses net of fee waivers, if any | 1.45%K | 1.45% | 1.45% | 1.45% | 1.45% | 1.45% |
| Expenses net of all reductions | 1.44%K | 1.42% | 1.44% | 1.39% | 1.41% | 1.38% |
| Net investment income (loss) | .27%K | .30% | .42% | .58% | .73% | .74%B |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $94,009 | $89,753 | $51,567 | $49,797 | $40,624 | $40,364 |
| Portfolio turnover rateL | 178%K | 176% | 197% | 138% | 142% | 254% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .49%.
C Total distributions of $.09 per share is comprised of distributions from net investment income of $.085 and distributions from net realized gain of $.005 per share.
D 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.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the sales charges.
I 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.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor International Capital Appreciation Fund Class T
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $14.94 | $14.47 | $13.68 | $11.03 | $10.00 | $10.63 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | –B | .01 | .02 | .04 | .05 | .05C |
| Net realized and unrealized gain (loss) | (.05) | .46 | .81 | 2.66 | 1.04 | (.52) |
| Total from investment operations | (.05) | .47 | .83 | 2.70 | 1.09 | (.47) |
| Distributions from net investment income | – | – | (.04) | (.05) | (.06) | (.05) |
| Distributions from net realized gain | – | – | – | – | (.01) | (.12) |
| Total distributions | – | – | (.04) | (.05) | (.06)D | (.16)E |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $14.89 | $14.94 | $14.47 | $13.68 | $11.03 | $10.00 |
| Total ReturnF,G,H | (.33)% | 3.25% | 6.07% | 24.57% | 10.99% | (4.51)% |
| Ratios to Average Net AssetsI,J | | | | | | |
| Expenses before reductions | 1.81%K | 1.86% | 1.94% | 1.96% | 2.03% | 1.88% |
| Expenses net of fee waivers, if any | 1.70%K | 1.70% | 1.70% | 1.70% | 1.70% | 1.70% |
| Expenses net of all reductions | 1.69%K | 1.67% | 1.69% | 1.64% | 1.66% | 1.62% |
| Net investment income (loss) | .02%K | .05% | .17% | .33% | .48% | .49%C |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $62,076 | $60,293 | $58,454 | $60,152 | $53,835 | $59,914 |
| Portfolio turnover rateL | 178%K | 176% | 197% | 138% | 142% | 254% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .24%.
D Total distributions of $.06 per share is comprised of distributions from net investment income of $.056 and distributions from net realized gain of $.005 per share.
E 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.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the sales charges.
I 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.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor International Capital Appreciation Fund Class B
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $13.75 | $13.38 | $12.68 | $10.22 | $9.26 | $9.84 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.03) | (.06) | (.04) | (.02) | –B | –B,C |
| Net realized and unrealized gain (loss) | (.05) | .43 | .74 | 2.48 | .96 | (.48) |
| Total from investment operations | (.08) | .37 | .70 | 2.46 | .96 | (.48) |
| Distributions from net investment income | – | – | – | – | – | (.01) |
| Distributions from net realized gain | – | – | – | – | – | (.09) |
| Total distributions | – | – | – | – | – | (.10) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $13.67 | $13.75 | $13.38 | $12.68 | $10.22 | $9.26 |
| Total ReturnD,E,F | (.58)% | 2.77% | 5.52% | 24.07% | 10.37% | (4.99)% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 2.37%I | 2.44% | 2.50% | 2.51% | 2.54% | 2.39% |
| Expenses net of fee waivers, if any | 2.20%I | 2.20% | 2.20% | 2.20% | 2.20% | 2.20% |
| Expenses net of all reductions | 2.20%I | 2.18% | 2.19% | 2.15% | 2.16% | 2.13% |
| Net investment income (loss) | (.48)%I | (.46)% | (.33)% | (.17)% | (.02)% | (.01)%C |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $659 | $1,061 | $1,577 | $2,228 | $2,745 | $4,241 |
| Portfolio turnover rateJ | 178%I | 176% | 197% | 138% | 142% | 254% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.26)%.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor International Capital Appreciation Fund Class C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $13.69 | $13.33 | $12.63 | $10.18 | $9.23 | $9.84 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.03) | (.06) | (.04) | (.02) | –B | –B,C |
| Net realized and unrealized gain (loss) | (.05) | .42 | .74 | 2.47 | .96 | (.49) |
| Total from investment operations | (.08) | .36 | .70 | 2.45 | .96 | (.49) |
| Distributions from net investment income | – | – | – | – | (.01) | (.01) |
| Distributions from net realized gain | – | – | – | – | (.01) | (.11) |
| Total distributions | – | – | – | – | (.01)D | (.12) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $13.61 | $13.69 | $13.33 | $12.63 | $10.18 | $9.23 |
| Total ReturnE,F,G | (.58)% | 2.70% | 5.54% | 24.07% | 10.41% | (5.07)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 2.31%J | 2.33% | 2.47% | 2.49% | 2.53% | 2.39% |
| Expenses net of fee waivers, if any | 2.20%J | 2.20% | 2.20% | 2.20% | 2.20% | 2.20% |
| Expenses net of all reductions | 2.19%J | 2.17% | 2.19% | 2.14% | 2.16% | 2.13% |
| Net investment income (loss) | (.48)%J | (.45)% | (.33)% | (.17)% | (.02)% | (.01)%C |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $36,438 | $36,491 | $20,910 | $21,334 | $18,090 | $19,619 |
| Portfolio turnover rateK | 178%J | 176% | 197% | 138% | 142% | 254% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.26)%.
D Total distributions of $.01 per share is comprised of distributions from net investment income of $.005 and distributions from net realized gain of $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor International Capital Appreciation Fund Class I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $16.28 | $15.75 | $14.87 | $11.99 | $10.87 | $11.54 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .04 | .09 | .10 | .11 | .11 | .12B |
| Net realized and unrealized gain (loss) | (.06) | .51 | .87 | 2.89 | 1.13 | (.57) |
| Total from investment operations | (.02) | .60 | .97 | 3.00 | 1.24 | (.45) |
| Distributions from net investment income | (.04) | (.07) | (.09) | (.12) | (.12) | (.11) |
| Distributions from net realized gain | – | – | – | – | (.01) | (.12) |
| Total distributions | (.04) | (.07) | (.09) | (.12) | (.12)C | (.22)D |
| Redemption fees added to paid in capitalA,E | – | – | – | – | – | – |
| Net asset value, end of period | $16.22 | $16.28 | $15.75 | $14.87 | $11.99 | $10.87 |
| Total ReturnF,G | (.13)% | 3.80% | 6.58% | 25.20% | 11.56% | (4.01)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.27%J | 1.27% | 1.38% | 1.39% | 1.48% | 1.35% |
| Expenses net of fee waivers, if any | 1.20%J | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% |
| Expenses net of all reductions | 1.19%J | 1.17% | 1.20% | 1.14% | 1.16% | 1.12% |
| Net investment income (loss) | .52%J | .55% | .67% | .83% | .98% | 1.00%B |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $74,526 | $72,421 | $18,449 | $7,768 | $4,568 | $4,335 |
| Portfolio turnover rateK | 178%J | 176% | 197% | 138% | 142% | 254% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividends, the ratio of net investment income (loss) to average net assets would have been .74%.
C Total distributions of $.12 per share is comprised of distributions from net investment income of $.115 and distributions from net realized gain of $.005 per share.
D 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.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2016
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 Class I shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a maximum holding period of seven years from the initial date of purchase. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective on or about July 1, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of April 30, 2016, including information on transfers between Levels 1 and 2 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), 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 | $22,726,834 |
| Gross unrealized depreciation | (4,271,634) |
| Net unrealized appreciation (depreciation) on securities | $18,455,200 |
| Tax cost | $251,977,810 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2016 | $(40,876,628) |
| 2017 | (23,967,872) |
| Total capital loss carryforward | $(64,844,500) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $231,743,226 and $226,308,855, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. 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 Class I of the Fund as compared to its benchmark index, the MSCI All Country World ex USA Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .84% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
| Class A | -% | .25% | $108,649 | $1,976 |
| Class T | .25% | .25% | 148,136 | – |
| Class B | .75% | .25% | 4,245 | 3,209 |
| Class C | .75% | .25% | 177,067 | 56,547 |
| | | | $438,097 | $61,732 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $13,766 |
| Class T | 4,714 |
| Class B(a) | 113 |
| Class C(a) | 3,424 |
| | $22,017 |
(a) When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| | Amount | % of
Class-Level Average
Net Assets(a) |
| Class A | $103,418 | .24 |
| Class T | 72,042 | .24 |
| Class B | 1,286 | .30 |
| Class C | 43,316 | .24 |
| Class I | 70,331 | .19 |
| | $ 290,393 | |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $973 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
| Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
| Borrower | $5,216,286 | .65% | $658 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $223 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $34,527. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
The investment adviser voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| | Expense
Limitations | Reimbursement |
| Class A | 1.45% | $47,026 |
| Class T | 1.70% | 33,393 |
| Class B | 2.20% | 725 |
| Class C | 2.20% | 20,247 |
| Class I | 1.20% | 23,411 |
| | | $124,802 |
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $8,790 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $955.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| From net investment income | | |
| Class A | $45,965 | $109,241 |
| Class I | 191,914 | 67,221 |
| Total | $237,879 | $176,462 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| Class A | | | | |
| Shares sold | 1,074,815 | 3,444,443 | $15,863,525 | $53,081,260 |
| Reinvestment of distributions | 2,811 | 6,822 | 43,093 | 102,609 |
| Shares redeemed | (782,715) | (1,059,333) | (11,598,267) | (16,101,792) |
| Net increase (decrease) | 294,911 | 2,391,932 | $4,308,351 | $37,082,077 |
| Class T | | | | |
| Shares sold | 507,039 | 689,717 | $7,323,288 | $10,301,883 |
| Shares redeemed | (373,948) | (694,037) | (5,380,558) | (10,349,650) |
| Net increase (decrease) | 133,091 | (4,320) | $1,942,730 | $(47,767) |
| Class B | | | | |
| Shares sold | 3,366 | 10,699 | $43,828 | $149,278 |
| Shares redeemed | (32,311) | (51,403) | (429,792) | (707,021) |
| Net increase (decrease) | (28,945) | (40,704) | $(385,964) | $(557,743) |
| Class C | | | | |
| Shares sold | 339,395 | 1,456,550 | $4,517,716 | $20,251,093 |
| Shares redeemed | (327,782) | (360,397) | (4,282,557) | (4,903,804) |
| Net increase (decrease) | 11,613 | 1,096,153 | $235,159 | $15,347,289 |
| Class I | | | | |
| Shares sold | 2,006,017 | 5,123,102 | $31,786,144 | $82,769,872 |
| Reinvestment of distributions | 8,426 | 3,912 | 137,601 | 62,664 |
| Shares redeemed | (1,870,519) | (1,848,914) | (28,599,495) | (30,160,539) |
| Net increase (decrease) | 143,924 | 3,278,100 | $3,324,250 | $52,671,997 |
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.
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, 2015 to April 30, 2016).
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.
| | Annualized Expense Ratio-A | Beginning
Account Value
November 1, 2015 | Ending
Account Value
April 30, 2016 | Expenses Paid
During Period-B
November 1, 2015
to April 30, 2016 |
| Class A | 1.45% | | | |
| Actual | | $1,000.00 | $997.90 | $7.20 |
| Hypothetical-C | | $1,000.00 | $1,017.65 | $7.27 |
| Class T | 1.70% | | | |
| Actual | | $1,000.00 | $996.70 | $8.44 |
| Hypothetical-C | | $1,000.00 | $1,016.41 | $8.52 |
| Class B | 2.20% | | | |
| Actual | | $1,000.00 | $994.20 | $10.91 |
| Hypothetical-C | | $1,000.00 | $1,013.92 | $11.02 |
| Class C | 2.20% | | | |
| Actual | | $1,000.00 | $994.20 | $10.91 |
| Hypothetical-C | | $1,000.00 | $1,013.92 | $11.02 |
| Class I | 1.20% | | | |
| Actual | | $1,000.00 | $998.70 | $5.96 |
| Hypothetical-C | | $1,000.00 | $1,018.90 | $6.02 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
C 5% return per year before expenses
AICAP-SANN-0616
1.703428.118
Fidelity Advisor® Global Capital Appreciation Fund
Class A, Class T, Class B and Class C
Semi-Annual Report April 30, 2016 |
|
Contents
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. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Five Stocks as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Medtronic PLC (Ireland, Health Care Equipment & Supplies) | 1.3 | 0.8 |
| Global Payments, Inc. (United States of America, IT Services) | 1.2 | 1.1 |
| Harman International Industries, Inc. (United States of America, Household Durables) | 1.2 | 0.0 |
| Amgen, Inc. (United States of America, Biotechnology) | 1.1 | 0.7 |
| First Republic Bank (United States of America, Banks) | 1.1 | 0.7 |
| | 5.9 | |
Top Five Market Sectors as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Consumer Discretionary | 17.6 | 21.9 |
| Health Care | 17.0 | 13.0 |
| Financials | 15.8 | 16.4 |
| Information Technology | 15.4 | 21.0 |
| Industrials | 13.4 | 12.0 |
Top Five Countries as of April 30, 2016
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| United States of America | 50.1 | 54.4 |
| Japan | 5.8 | 7.1 |
| Canada | 3.8 | 3.0 |
| Ireland | 2.7 | 1.8 |
| United Kingdom | 2.4 | 4.5 |
Percentages are adjusted for the effect of futures contracts, if applicable.
Asset Allocation (% of fund's net assets)
| As of April 30, 2016 |
| | Stocks | 92.5% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 7.5% |
| As of October 31, 2015 |
| | Stocks | 94.7% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 5.3% |
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments April 30, 2016 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 92.2% | | | |
| | | Shares | Value |
| Australia - 2.0% | | | |
| Altium Ltd. | | 86,364 | $403,851 |
| Ausdrill Ltd. | | 190,649 | 68,131 |
| Burson Group Ltd. | | 147,119 | 557,072 |
| Corporate Travel Managemnt Ltd. | | 40,551 | 439,678 |
| Imdex Ltd. (a) | | 192,909 | 30,069 |
| Japara Healthcare Ltd. | | 170,999 | 367,954 |
| NEXTDC Ltd. (a) | | 80,265 | 175,765 |
| Orora Ltd. | | 186,523 | 374,412 |
| Sonic Healthcare Ltd. | | 308 | 4,520 |
| The Star Entertainment Group Ltd. | | 103,003 | 442,499 |
|
| TOTAL AUSTRALIA | | | 2,863,951 |
|
| Austria - 0.3% | | | |
| CA Immobilien Anlagen AG | | 18,300 | 349,520 |
| IMMOFINANZ Immobilien Anlagen AG (a) | | 46,100 | 108,688 |
|
| TOTAL AUSTRIA | | | 458,208 |
|
| Bailiwick of Jersey - 0.4% | | | |
| Randgold Resources Ltd. sponsored ADR | | 5,300 | 532,650 |
| Belgium - 0.3% | | | |
| Ion Beam Applications SA | | 10,700 | 440,461 |
| Bermuda - 1.9% | | | |
| BW LPG Ltd. | | 6,900 | 41,476 |
| Essent Group Ltd. (a) | | 36,700 | 749,414 |
| Genpact Ltd. (a) | | 51,100 | 1,425,179 |
| Great Eagle Holdings Ltd. | | 34,590 | 140,114 |
| Man Wah Holdings Ltd. | | 274,800 | 320,469 |
|
| TOTAL BERMUDA | | | 2,676,652 |
|
| Brazil - 1.3% | | | |
| Cetip SA - Mercados Organizado | | 37,800 | 464,030 |
| Direcional Engenharia SA | | 57,600 | 102,999 |
| Fleury SA | | 62,100 | 451,045 |
| Lojas Renner SA | | 60,900 | 367,782 |
| Natura Cosmeticos SA | | 3,700 | 27,433 |
| Smiles SA | | 30,700 | 356,162 |
|
| TOTAL BRAZIL | | | 1,769,451 |
|
| British Virgin Islands - 0.0% | | | |
| Epic Gas Ltd. (a) | | 5,100 | 9,501 |
| Canada - 3.8% | | | |
| B2Gold Corp. (a) | | 99,000 | 220,140 |
| CCL Industries, Inc. Class B | | 400 | 73,245 |
| Cott Corp. | | 25,100 | 332,680 |
| FirstService Corp. | | 6,700 | 301,065 |
| Gluskin Sheff + Associates, Inc. | | 23,300 | 331,663 |
| Lions Gate Entertainment Corp. (b) | | 29,100 | 646,020 |
| New Gold, Inc. (a) | | 5,700 | 26,803 |
| North West Co., Inc. | | 14,300 | 317,866 |
| Pason Systems, Inc. | | 4,300 | 62,511 |
| PrairieSky Royalty Ltd. | | 32,600 | 686,453 |
| Premium Brands Holdings Corp. | | 26,500 | 1,143,046 |
| Suncor Energy, Inc. | | 30,900 | 907,027 |
| Winpak Ltd. | | 9,500 | 327,772 |
|
| TOTAL CANADA | | | 5,376,291 |
|
| Cayman Islands - 2.3% | | | |
| AAC Technology Holdings, Inc. | | 45,500 | 315,814 |
| Cheung Kong Property Holdings Ltd. | | 27,000 | 184,396 |
| Cogobuy Group (a) | | 238,000 | 344,412 |
| Fu Shou Yuan International Group Ltd. | | 554,000 | 388,682 |
| Greatview Aseptic Pack Co. Ltd. | | 206,000 | 104,324 |
| HKBN Ltd. | | 275,000 | 338,162 |
| New Oriental Education & Technology Group, Inc. sponsored ADR | | 10,600 | 415,096 |
| Sunny Optical Technology Group Co. Ltd. | | 135,000 | 416,374 |
| Tencent Holdings Ltd. | | 20,300 | 413,071 |
| Tongda Group Holdings Ltd. | | 1,670,000 | 343,041 |
|
| TOTAL CAYMAN ISLANDS | | | 3,263,372 |
|
| China - 0.4% | | | |
| Beijing Urban Consolidated & Development Group Ltd. (H Shares) | | 276,000 | 159,420 |
| Kweichow Moutai Co. Ltd. | | 10,226 | 396,780 |
|
| TOTAL CHINA | | | 556,200 |
|
| Colombia - 0.3% | | | |
| Cementos Argos SA | | 101,360 | 412,031 |
| Denmark - 1.7% | | | |
| Ambu A/S Series B | | 700 | 24,124 |
| Genmab A/S (a) | | 6,400 | 948,228 |
| Pandora A/S | | 2,600 | 337,616 |
| Vestas Wind Systems A/S | | 9,900 | 708,663 |
| William Demant Holding A/S (a) | | 3,400 | 349,432 |
|
| TOTAL DENMARK | | | 2,368,063 |
|
| France - 1.1% | | | |
| Compagnie Plastic Omnium | | 18,600 | 615,936 |
| Les Nouveaux Construct Investment SA | | 5,700 | 155,990 |
| Orpea | | 2,000 | 164,910 |
| Sartorius Stedim Biotech | | 600 | 229,125 |
| SR Teleperformance SA | | 4,500 | 403,974 |
|
| TOTAL FRANCE | | | 1,569,935 |
|
| Germany - 1.4% | | | |
| adidas AG | | 4,700 | 605,983 |
| BAUER AG | | 17,000 | 277,583 |
| DIC Asset AG | | 38,500 | 354,791 |
| LEG Immobilien AG | | 3,913 | 362,076 |
| MLP AG | | 12,800 | 49,891 |
| Nemetschek Se | | 3,700 | 206,750 |
| Rational AG | | 300 | 152,297 |
|
| TOTAL GERMANY | | | 2,009,371 |
|
| Greece - 0.1% | | | |
| Mytilineos Holdings SA | | 24,600 | 98,777 |
| Hong Kong - 1.1% | | | |
| Hang Lung Properties Ltd. | | 170,000 | 338,500 |
| Sino Land Ltd. | | 515,832 | 809,828 |
| Techtronic Industries Co. Ltd. | | 103,000 | 386,113 |
|
| TOTAL HONG KONG | | | 1,534,441 |
|
| India - 0.4% | | | |
| Kajaria Ceramics Ltd. (a) | | 11,303 | 178,626 |
| Tvs Motor Co. Ltd. | | 71,883 | 346,075 |
|
| TOTAL INDIA | | | 524,701 |
|
| Indonesia - 0.5% | | | |
| PT Astra International Tbk | | 11,100 | 5,660 |
| PT Bank Rakyat Indonesia Tbk | | 283,800 | 222,727 |
| Waskita Karya Persero Tbk PT | | 2,297,800 | 408,579 |
|
| TOTAL INDONESIA | | | 636,966 |
|
| Ireland - 2.7% | | | |
| Accenture PLC Class A | | 700 | 79,044 |
| C&C Group PLC | | 50,629 | 227,427 |
| CRH PLC | | 12,000 | 349,451 |
| Jazz Pharmaceuticals PLC (a) | | 8,700 | 1,311,090 |
| Medtronic PLC | | 23,400 | 1,852,110 |
|
| TOTAL IRELAND | | | 3,819,122 |
|
| Isle of Man - 0.0% | | | |
| Optimal Payments PLC (a) | | 3,900 | 21,723 |
| Israel - 0.9% | | | |
| Elbit Systems Ltd. (Israel) | | 4,300 | 430,178 |
| Frutarom Industries Ltd. | | 8,400 | 430,516 |
| Ituran Location & Control Ltd. | | 17,300 | 359,840 |
|
| TOTAL ISRAEL | | | 1,220,534 |
|
| Italy - 0.4% | | | |
| Mediaset SpA | | 34,100 | 153,452 |
| Reply SpA | | 2,417 | 344,011 |
|
| TOTAL ITALY | | | 497,463 |
|
| Japan - 5.8% | | | |
| Ariake Japan Co. Ltd. | | 7,900 | 437,679 |
| Asahi Co. Ltd. | | 68,800 | 1,020,460 |
| Astellas Pharma, Inc. | | 70,300 | 947,826 |
| Broadleaf Co. Ltd. | | 18,700 | 184,795 |
| Chodai Co. Ltd. | | 27,500 | 97,795 |
| Daiwa Industries Ltd. | | 42,900 | 367,736 |
| FJ Next Co. Ltd. | | 18,600 | 86,847 |
| Gulliver International Co. Ltd. (b) | | 37,200 | 365,665 |
| JK Holdings Co. Ltd. | | 16,200 | 69,362 |
| KDDI Corp. | | 15,000 | 432,086 |
| Kinugawa Rubber Industrial Co. Ltd. | | 82,000 | 570,958 |
| Koshidaka Holdings Co. Ltd. | | 15,200 | 298,889 |
| Makita Corp. | | 6,700 | 422,659 |
| Misumi Group, Inc. | | 22,800 | 314,863 |
| Monex Group, Inc. | | 132,300 | 341,297 |
| NEC Corp. | | 108,000 | 262,848 |
| Olympus Corp. | | 26,600 | 1,036,246 |
| Sakai Heavy Industries Ltd. | | 36,000 | 60,799 |
| Seikitokyu Kogyo Co. Ltd. | | 67,700 | 295,917 |
| Sohgo Security Services Co., Ltd. | | 4,400 | 244,332 |
| Sundrug Co. Ltd. | | 4,500 | 319,751 |
|
| TOTAL JAPAN | | | 8,178,810 |
|
| Korea (South) - 0.7% | | | |
| DuzonBizon Co. Ltd. | | 7,893 | 171,890 |
| Fila Korea Ltd. | | 1,480 | 134,349 |
| Osstem Implant Co. Ltd. (a) | | 6,209 | 388,037 |
| Vieworks Co. Ltd. | | 7,579 | 333,412 |
|
| TOTAL KOREA (SOUTH) | | | 1,027,688 |
|
| Luxembourg - 0.6% | | | |
| Stabilus SA (a) | | 17,500 | 874,675 |
| Malaysia - 0.4% | | | |
| My E.G.Services Bhd | | 1,052,600 | 541,591 |
| Marshall Islands - 0.1% | | | |
| StealthGas, Inc. (a) | | 46,700 | 182,597 |
| Mexico - 1.4% | | | |
| Gruma S.A.B. de CV Series B | | 21,900 | 319,921 |
| Grupo Aeroportuario del Pacifico S.A.B. de CV Series B | | 4,900 | 46,167 |
| Grupo Aeroportuario Norte S.A.B. de CV | | 63,200 | 365,726 |
| Grupo Bimbo S.A.B. de CV Series A | | 118,900 | 362,478 |
| Grupo Lala S.A.B. de CV | | 162,700 | 435,105 |
| Promotora y Operadora de Infraestructura S.A.B. de CV | | 30,500 | 386,802 |
|
| TOTAL MEXICO | | | 1,916,199 |
|
| Netherlands - 0.5% | | | |
| Grandvision NV | | 12,900 | 354,507 |
| Heijmans NV (Certificaten Van Aandelen) (a) | | 12,700 | 119,682 |
| Nsi NV | | 35,061 | 166,408 |
|
| TOTAL NETHERLANDS | | | 640,597 |
|
| New Zealand - 0.9% | | | |
| Fisher & Paykel Healthcare Corp. | | 19,592 | 125,173 |
| Ryman Healthcare Group Ltd. | | 58,266 | 363,310 |
| Sky City Entertainment Group Ltd. | | 112,308 | 383,469 |
| Summerset Group Holdings Ltd. | | 118,816 | 368,357 |
|
| TOTAL NEW ZEALAND | | | 1,240,309 |
|
| Panama - 0.2% | | | |
| Copa Holdings SA Class A | | 3,800 | 242,250 |
| Philippines - 0.2% | | | |
| GT Capital Holdings, Inc. | | 11,060 | 321,442 |
| Poland - 0.2% | | | |
| Kruk SA | | 6,900 | 344,372 |
| Singapore - 0.0% | | | |
| Broadcom Ltd. | | 169 | 24,632 |
| South Africa - 0.3% | | | |
| JSE Ltd. | | 34,600 | 401,071 |
| Sweden - 0.7% | | | |
| Attendo AB | | 38,200 | 380,552 |
| Indutrade AB | | 7,000 | 392,518 |
| ITAB Shop Concept AB | | 6,800 | 210,847 |
|
| TOTAL SWEDEN | | | 983,917 |
|
| Switzerland - 1.1% | | | |
| Chubb Ltd. | | 9,200 | 1,084,312 |
| Lonza Group AG | | 3,006 | 500,112 |
|
| TOTAL SWITZERLAND | | | 1,584,424 |
|
| Taiwan - 0.9% | | | |
| Aerospace Industries Development Corp. | | 4,000 | 5,448 |
| Ennoconn Corp. | | 27,000 | 344,364 |
| Hota Industrial Manufacturing Co. Ltd. | | 60,000 | 287,899 |
| Sunny Friend Environmental Technology Co. Ltd. | | 37,000 | 160,357 |
| Taiwan Paiho Ltd. | | 122,000 | 366,721 |
| Voltronic Power Technology Corp. | | 3,150 | 49,635 |
|
| TOTAL TAIWAN | | | 1,214,424 |
|
| Thailand - 1.9% | | | |
| Airports of Thailand PCL (For. Reg.) | | 39,300 | 441,168 |
| Bangkok Airways PCL | | 760,300 | 555,202 |
| Central Pattana PCL (For. Reg.) | | 236,000 | 356,501 |
| Eastern Polymer Group PCL | | 1,347,400 | 513,185 |
| Kasikornbank PCL (For. Reg.) | | 17,900 | 85,604 |
| KCE Electronics PCL | | 7,500 | 16,860 |
| MC Group PCL | | 11,400 | 4,375 |
| Muangthai Leasing PCL | | 647,100 | 370,619 |
| Srisawad Power 1979 PCL | | 309,857 | 374,899 |
|
| TOTAL THAILAND | | | 2,718,413 |
|
| Turkey - 0.5% | | | |
| Turk Tuborg Bira ve Malt Sanayii A/S (a) | | 165,000 | 374,464 |
| Ulker Biskuvi Sanayi A/S | | 46,000 | 366,290 |
|
| TOTAL TURKEY | | | 740,754 |
|
| United Kingdom - 2.4% | | | |
| Alliance Pharma PLC | | 642,800 | 422,652 |
| Ensco PLC Class A | | 19,700 | 235,612 |
| Lloyds Banking Group PLC | | 671,800 | 659,379 |
| Micro Focus International PLC | | 32,700 | 730,550 |
| Royal Mail PLC | | 55,700 | 396,269 |
| Steris PLC | | 10,900 | 770,303 |
| U & I Group PLC | | 26,800 | 77,828 |
| Virgin Money Holdings Uk PLC | | 16,200 | 86,421 |
|
| TOTAL UNITED KINGDOM | | | 3,379,014 |
|
| United States of America - 50.1% | | | |
| Abraxas Petroleum Corp. (a) | | 408,100 | 620,312 |
| Adobe Systems, Inc. (a) | | 1,800 | 169,596 |
| AFLAC, Inc. | | 5,500 | 379,335 |
| Air Lease Corp. Class A | | 5,300 | 161,544 |
| Albemarle Corp. U.S. | | 16,400 | 1,085,024 |
| Alphabet, Inc.: | | | |
| Class A | | 2,100 | 1,486,548 |
| Class C | | 1,259 | 872,500 |
| AMC Networks, Inc. Class A (a) | | 8,900 | 580,547 |
| American Tower Corp. | | 3,600 | 377,568 |
| Amgen, Inc. | | 10,000 | 1,583,000 |
| Amplify Snack Brands, Inc. (b) | | 31,500 | 485,415 |
| Apache Corp. | | 15,200 | 826,880 |
| AT&T, Inc. | | 9,500 | 368,790 |
| AutoZone, Inc. (a) | | 700 | 535,661 |
| Baker Hughes, Inc. | | 3,900 | 188,604 |
| Bank of America Corp. | | 41,600 | 605,696 |
| Becton, Dickinson & Co. | | 8,000 | 1,290,080 |
| Biogen, Inc. (a) | | 4,600 | 1,264,954 |
| Boise Cascade Co. (a) | | 8,400 | 175,308 |
| Boston Scientific Corp. (a) | | 68,300 | 1,497,136 |
| Cadence Design Systems, Inc. (a) | | 17,000 | 394,230 |
| Cambrex Corp. (a) | | 2,200 | 106,128 |
| Capital One Financial Corp. | | 12,200 | 883,158 |
| Catalent, Inc. (a) | | 43,100 | 1,272,743 |
| CDW Corp. | | 31,400 | 1,208,900 |
| CEB, Inc. | | 5,000 | 308,450 |
| CIT Group, Inc. | | 16,900 | 584,233 |
| Citigroup, Inc. | | 32,700 | 1,513,356 |
| Colfax Corp. (a) | | 12,600 | 408,618 |
| Continental Resources, Inc. (a)(b) | | 4,100 | 152,766 |
| Coty, Inc. Class A | | 500 | 15,200 |
| CPI Card Group (b) | | 38,000 | 301,340 |
| Cree, Inc. (a) | | 20,300 | 497,553 |
| Cummins, Inc. | | 3,100 | 362,793 |
| Dermira, Inc. (a) | | 3,100 | 78,399 |
| Discover Financial Services | | 9,300 | 523,311 |
| Eastman Chemical Co. | | 4,200 | 320,796 |
| Ethan Allen Interiors, Inc. | | 16,900 | 575,276 |
| Facebook, Inc. Class A (a) | | 6,200 | 728,996 |
| Fair Isaac Corp. | | 9,300 | 992,403 |
| First Republic Bank | | 21,900 | 1,540,008 |
| Fortune Brands Home & Security, Inc. | | 8,200 | 454,362 |
| Franklin Resources, Inc. | | 19,800 | 739,332 |
| Global Payments, Inc. | | 23,800 | 1,717,884 |
| Greenhill & Co., Inc. | | 5,400 | 118,908 |
| Halliburton Co. | | 18,300 | 755,973 |
| Harman International Industries, Inc. | | 22,000 | 1,688,720 |
| HealthSouth Corp. warrants 1/17/17 (a) | | 10 | 36 |
| Helmerich & Payne, Inc. | | 2,300 | 152,076 |
| Houghton Mifflin Harcourt Co. (a) | | 19,800 | 406,098 |
| Huron Consulting Group, Inc. (a) | | 1,700 | 94,537 |
| INC Research Holdings, Inc. Class A (a) | | 7,300 | 351,349 |
| Interpublic Group of Companies, Inc. | | 41,000 | 940,540 |
| Interval Leisure Group, Inc. (b) | | 6,400 | 90,368 |
| IPG Photonics Corp. (a) | | 5,800 | 502,686 |
| iRobot Corp. (a)(b) | | 11,000 | 411,180 |
| Johnson & Johnson | | 10,900 | 1,221,672 |
| Johnson Controls, Inc. | | 400 | 16,560 |
| Kate Spade & Co. (a) | | 17,400 | 447,702 |
| Keysight Technologies, Inc. (a) | | 16,800 | 438,144 |
| Ladder Capital Corp. Class A | | 8,419 | 100,270 |
| Lakeland Financial Corp. | | 11,100 | 524,919 |
| Las Vegas Sands Corp. | | 2,300 | 103,845 |
| Lennox International, Inc. | | 9,300 | 1,255,035 |
| M&T Bank Corp. | | 3,100 | 366,792 |
| Malibu Boats, Inc. Class A (a) | | 52,300 | 920,480 |
| Marsh & McLennan Companies, Inc. | | 2,700 | 170,505 |
| Maxim Integrated Products, Inc. | | 19,500 | 696,540 |
| Microchip Technology, Inc. | | 959 | 46,598 |
| NACCO Industries, Inc. Class A | | 15,400 | 916,608 |
| News Corp. Class A | | 900 | 11,178 |
| Northrop Grumman Corp. | | 4,800 | 990,048 |
| NVR, Inc. (a) | | 500 | 830,645 |
| Oaktree Capital Group LLC Class A | | 1,500 | 72,465 |
| Omega Flex, Inc. | | 23,679 | 779,986 |
| Omnicom Group, Inc. | | 5,500 | 456,335 |
| Oxford Industries, Inc. | | 1,600 | 106,272 |
| Pacira Pharmaceuticals, Inc. (a) | | 5,600 | 303,016 |
| PayPal Holdings, Inc. (a) | | 12,300 | 481,914 |
| PDC Energy, Inc. (a) | | 1,700 | 106,743 |
| Praxair, Inc. | | 3,100 | 364,126 |
| Procter & Gamble Co. | | 5,400 | 432,648 |
| Progressive Corp. | | 21,900 | 713,940 |
| PulteGroup, Inc. | | 60,300 | 1,108,917 |
| PVH Corp. | | 4,400 | 420,640 |
| Qualcomm, Inc. | | 12,400 | 626,448 |
| Regeneron Pharmaceuticals, Inc. (a) | | 300 | 113,013 |
| Regions Financial Corp. | | 41,800 | 392,084 |
| ResMed, Inc. | | 7,619 | 425,140 |
| Rexnord Corp. (a) | | 64,200 | 1,399,560 |
| Rockwell Collins, Inc. | | 4,400 | 388,036 |
| Ruth's Hospitality Group, Inc. | | 26,500 | 420,820 |
| Semtech Corp. (a) | | 6,900 | 149,316 |
| SLM Corp. (a) | | 79,000 | 534,830 |
| SM Energy Co. | | 10,200 | 317,832 |
| Southwestern Energy Co. (a)(b) | | 49,000 | 658,070 |
| Stanley Black & Decker, Inc. | | 3,700 | 414,104 |
| Store Capital Corp. | | 40,800 | 1,047,336 |
| Surgical Care Affiliates, Inc. (a) | | 9,900 | 478,665 |
| Synchrony Financial (a) | | 15,300 | 467,721 |
| Syntel, Inc. (a) | | 3,200 | 136,096 |
| Tenneco, Inc. (a) | | 4,900 | 261,170 |
| Thermo Fisher Scientific, Inc. | | 9,800 | 1,413,650 |
| TJX Companies, Inc. | | 5,600 | 424,592 |
| Toll Brothers, Inc. (a) | | 31,800 | 868,140 |
| Total System Services, Inc. | | 13,600 | 695,504 |
| TransUnion Holding Co., Inc. | | 11,900 | 356,405 |
| Twenty-First Century Fox, Inc. Class B | | 18,200 | 548,184 |
| U.S. Bancorp | | 10,900 | 465,321 |
| UMB Financial Corp. | | 13,000 | 724,750 |
| Vantiv, Inc. (a) | | 27,900 | 1,521,666 |
| Visa, Inc. Class A | | 8,800 | 679,712 |
| VSE Corp. | | 15,394 | 955,044 |
| WESCO International, Inc. (a) | | 7,800 | 458,562 |
| Western Digital Corp. | | 12,900 | 527,159 |
| WestRock Co. | | 11,300 | 472,905 |
| Wyndham Worldwide Corp. | | 4,700 | 333,465 |
| Xylem, Inc. | | 24,200 | 1,011,076 |
| Yum! Brands, Inc. | | 2,200 | 175,032 |
| Zimmer Biomet Holdings, Inc. | | 3,500 | 405,195 |
|
| TOTAL UNITED STATES OF AMERICA | | | 70,418,350 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $119,508,941) | | | 129,635,393 |
|
| Nonconvertible Preferred Stocks - 0.3% | | | |
| Brazil - 0.0% | | | |
| Banco do Estado Rio Grande do Sul SA | | 36,300 | 89,820 |
| Germany - 0.3% | | | |
| Sartorius AG (non-vtg.) | | 1,600 | 394,722 |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | | | |
| (Cost $317,351) | | | 484,542 |
| | | Principal Amount(c) | Value |
|
| Nonconvertible Bonds - 0.0% | | | |
| Canada - 0.0% | | | |
| Constellation Software, Inc. 7.6% 3/31/40 (d) | | | |
| (Cost $4,949) | | 5,600 | 4,859 |
| | | Shares | Value |
|
| Money Market Funds - 9.6% | | | |
| Fidelity Cash Central Fund, 0.38% (e) | | 10,341,455 | 10,341,455 |
| Fidelity Securities Lending Cash Central Fund, 0.42% (e)(f) | | 3,092,919 | 3,092,919 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $13,434,374) | | | 13,434,374 |
| TOTAL INVESTMENT PORTFOLIO - 102.1% | | | |
| (Cost $133,265,615) | | | 143,559,168 |
| NET OTHER ASSETS (LIABILITIES) - (2.1)% | | | (2,908,682) |
| NET ASSETS - 100% | | | $140,650,486 |
Currency Abbreviations
CAD – Canadian dollar
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Amount is stated in United States dollars unless otherwise noted.
(d) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(e) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
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 | $14,202 |
| Fidelity Securities Lending Cash Central Fund | 15,272 |
| Total | $29,474 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2016, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Consumer Discretionary | $24,304,820 | $20,522,325 | $3,782,495 | $-- |
| Consumer Staples | 5,994,183 | 5,236,753 | 757,430 | -- |
| Energy | 5,904,433 | 5,894,932 | -- | 9,501 |
| Financials | 22,553,136 | 20,079,622 | 2,473,514 | -- |
| Health Care | 23,977,877 | 21,989,285 | 1,988,592 | -- |
| Industrials | 18,705,820 | 15,964,274 | 2,741,546 | -- |
| Information Technology | 21,629,094 | 19,693,151 | 1,935,943 | -- |
| Materials | 5,911,534 | 5,358,982 | 552,552 | -- |
| Telecommunication Services | 1,139,038 | 368,790 | 770,248 | -- |
| Corporate Bonds | 4,859 | -- | 4,859 | -- |
| Money Market Funds | 13,434,374 | 13,434,374 | -- | -- |
| Total Investments in Securities: | $143,559,168 | $128,542,488 | $15,007,179 | $9,501 |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2016. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
| Transfers | Total |
| Level 1 to Level 2 | $113,066 |
| Level 2 to Level 1 | $2,934,482 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | April 30, 2016 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $3,014,507) — See accompanying schedule:
Unaffiliated issuers (cost $119,831,241) | $130,124,794 | |
| Fidelity Central Funds (cost $13,434,374) | 13,434,374 | |
| Total Investments (cost $133,265,615) | | $143,559,168 |
| Cash | | 46,827 |
| Foreign currency held at value (cost $2,179) | | 2,171 |
| Receivable for investments sold | | 838,884 |
| Receivable for fund shares sold | | 272,310 |
| Dividends receivable | | 172,432 |
| Interest receivable | | 29 |
| Distributions receivable from Fidelity Central Funds | | 8,599 |
| Prepaid expenses | | 80 |
| Receivable from investment adviser for expense reductions | | 5,601 |
| Other receivables | | 50,434 |
| Total assets | | 144,956,535 |
| Liabilities | | |
| Payable for investments purchased | $600,487 | |
| Payable for fund shares redeemed | 407,290 | |
| Accrued management fee | 101,582 | |
| Distribution and service plan fees payable | 35,187 | |
| Other affiliated payables | 28,238 | |
| Other payables and accrued expenses | 40,346 | |
| Collateral on securities loaned, at value | 3,092,919 | |
| Total liabilities | | 4,306,049 |
| Net Assets | | $140,650,486 |
| Net Assets consist of: | | |
| Paid in capital | | $133,122,043 |
| Accumulated net investment loss | | (151,316) |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (2,593,177) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 10,272,936 |
| Net Assets | | $140,650,486 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($40,529,046 ÷ 2,596,455 shares) | | $15.61 |
| Maximum offering price per share (100/94.25 of $15.61) | | $16.56 |
| Class T: | | |
| Net Asset Value and redemption price per share ($22,097,718 ÷ 1,470,368 shares) | | $15.03 |
| Maximum offering price per share (100/96.50 of $15.03) | | $15.58 |
| Class B: | | |
| Net Asset Value and offering price per share ($639,736 ÷ 46,187 shares)(a) | | $13.85 |
| Class C: | | |
| Net Asset Value and offering price per share ($20,375,646 ÷ 1,475,364 shares)(a) | | $13.81 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($57,008,340 ÷ 3,501,116 shares) | | $16.28 |
(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.
Statement of Operations
| | | Six months ended April 30, 2016 (Unaudited) |
| Investment Income | | |
| Dividends | | $951,020 |
| Income from Fidelity Central Funds | | 29,474 |
| Income before foreign taxes withheld | | 980,494 |
| Less foreign taxes withheld | | (37,018) |
| Total income | | 943,476 |
| Expenses | | |
| Management fee | | |
| Basic fee | $485,485 | |
| Performance adjustment | 114,993 | |
| Transfer agent fees | 146,216 | |
| Distribution and service plan fees | 210,369 | |
| Accounting and security lending fees | 27,177 | |
| Custodian fees and expenses | 13,476 | |
| Independent trustees' compensation | 303 | |
| Registration fees | 62,303 | |
| Audit | 54,244 | |
| Legal | 2,964 | |
| Miscellaneous | 494 | |
| Total expenses before reductions | 1,118,024 | |
| Expense reductions | (75,279) | 1,042,745 |
| Net investment income (loss) | | (99,269) |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (2,212,395) | |
| Foreign currency transactions | 1,967 | |
| Total net realized gain (loss) | | (2,210,428) |
Change in net unrealized appreciation (depreciation) on:
Investment securities | 266,974 | |
| Assets and liabilities in foreign currencies | 7,732 | |
| Total change in net unrealized appreciation (depreciation) | | 274,706 |
| Net gain (loss) | | (1,935,722) |
| Net increase (decrease) in net assets resulting from operations | | $(2,034,991) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended April 30, 2016 (Unaudited) | Year ended October 31, 2015 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $(99,269) | $(180,159) |
| Net realized gain (loss) | (2,210,428) | 1,861,188 |
| Change in net unrealized appreciation (depreciation) | 274,706 | 504,624 |
| Net increase (decrease) in net assets resulting from operations | (2,034,991) | 2,185,653 |
| Distributions to shareholders from net realized gain | (833,839) | – |
| Share transactions - net increase (decrease) | (2,907,901) | 31,147,206 |
| Redemption fees | 268 | 3,469 |
| Total increase (decrease) in net assets | (5,776,463) | 33,336,328 |
| Net Assets | | |
| Beginning of period | 146,426,949 | 113,090,621 |
| End of period (including accumulated net investment loss of $151,316 and accumulated net investment loss of $52,047, respectively) | $140,650,486 | $146,426,949 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Capital Appreciation Fund Class A
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $15.89 | $15.32 | $13.64 | $10.40 | $9.57 | $11.41 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.01) | (.01) | .01 | .04 | .02 | (.03) |
| Net realized and unrealized gain (loss) | (.18) | .58 | 1.76 | 3.20 | .81 | (1.76) |
| Total from investment operations | (.19) | .57 | 1.77 | 3.24 | .83 | (1.79) |
| Distributions from net investment income | – | – | (.02) | – | – | – |
| Distributions from net realized gain | (.09) | – | (.06) | – | – | (.05) |
| Total distributions | (.09) | – | (.09)B | – | – | (.05) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
| Net asset value, end of period | $15.61 | $15.89 | $15.32 | $13.64 | $10.40 | $9.57 |
| Total ReturnD,E,F | (1.22)% | 3.72% | 13.03% | 31.15% | 8.67% | (15.81)% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 1.58%I | 1.57% | 1.62% | 1.38% | 1.43% | 1.51% |
| Expenses net of fee waivers, if any | 1.45%I | 1.45% | 1.45% | 1.38% | 1.43% | 1.45% |
| Expenses net of all reductions | 1.45%I | 1.44% | 1.45% | 1.35% | 1.40% | 1.43% |
| Net investment income (loss) | (.09)%I | (.07)% | .07% | .33% | .22% | (.24)% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $40,529 | $41,225 | $35,987 | $33,694 | $26,961 | $36,367 |
| Portfolio turnover rateJ | 114%I | 176% | 249% | 211% | 155% | 140% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.09 per share is comprised of distributions from net investment income of $.024 and distributions from net realized gain of $.064 per share.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Capital Appreciation Fund Class T
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $15.32 | $14.81 | $13.19 | $10.09 | $9.31 | $11.11 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.02) | (.05) | (.03) | –B | –B | (.05) |
| Net realized and unrealized gain (loss) | (.18) | .56 | 1.71 | 3.10 | .78 | (1.72) |
| Total from investment operations | (.20) | .51 | 1.68 | 3.10 | .78 | (1.77) |
| Distributions from net realized gain | (.09) | – | (.06) | – | – | (.03) |
| Total distributions | (.09) | – | (.06) | – | – | (.03) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $15.03 | $15.32 | $14.81 | $13.19 | $10.09 | $9.31 |
| Total ReturnC,D,E | (1.33)% | 3.44% | 12.77% | 30.72% | 8.38% | (15.97)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 1.88%H | 1.89% | 1.93% | 1.68% | 1.71% | 1.80% |
| Expenses net of fee waivers, if any | 1.70%H | 1.70% | 1.70% | 1.68% | 1.70% | 1.70% |
| Expenses net of all reductions | 1.70%H | 1.69% | 1.70% | 1.64% | 1.68% | 1.68% |
| Net investment income (loss) | (.34)%H | (.32)% | (.17)% | .04% | (.05)% | (.49)% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $22,098 | $24,017 | $20,975 | $19,193 | $15,731 | $24,180 |
| Portfolio turnover rateI | 114%H | 176% | 249% | 211% | 155% | 140% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Capital Appreciation Fund Class B
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $14.16 | $13.75 | $12.27 | $9.43 | $8.74 | $10.46 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.06) | (.12) | (.09) | (.05) | (.05) | (.10) |
| Net realized and unrealized gain (loss) | (.16) | .53 | 1.58 | 2.89 | .74 | (1.62) |
| Total from investment operations | (.22) | .41 | 1.49 | 2.84 | .69 | (1.72) |
| Distributions from net realized gain | (.09) | – | (.01) | – | – | –B |
| Total distributions | (.09) | – | (.01) | – | – | – |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $13.85 | $14.16 | $13.75 | $12.27 | $9.43 | $8.74 |
| Total ReturnC,D,E | (1.58)% | 2.98% | 12.11% | 30.12% | 7.89% | (16.42)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 2.40%H | 2.44% | 2.44% | 2.17% | 2.19% | 2.32% |
| Expenses net of fee waivers, if any | 2.20%H | 2.20% | 2.20% | 2.17% | 2.19% | 2.20% |
| Expenses net of all reductions | 2.20%H | 2.19% | 2.20% | 2.13% | 2.17% | 2.18% |
| Net investment income (loss) | (.84)%H | (.82)% | (.68)% | (.45)% | (.54)% | (.99)% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $640 | $882 | $1,223 | $1,331 | $1,401 | $1,926 |
| Portfolio turnover rateI | 114%H | 176% | 249% | 211% | 155% | 140% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Capital Appreciation Fund Class C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $14.12 | $13.72 | $12.26 | $9.41 | $8.73 | $10.46 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.06) | (.12) | (.09) | (.05) | (.05) | (.10) |
| Net realized and unrealized gain (loss) | (.16) | .52 | 1.58 | 2.90 | .73 | (1.61) |
| Total from investment operations | (.22) | .40 | 1.49 | 2.85 | .68 | (1.71) |
| Distributions from net realized gain | (.09) | – | (.03) | – | – | (.02) |
| Total distributions | (.09) | – | (.03) | – | – | (.02) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $13.81 | $14.12 | $13.72 | $12.26 | $9.41 | $8.73 |
| Total ReturnC,D,E | (1.58)% | 2.92% | 12.13% | 30.29% | 7.79% | (16.38)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 2.34%H | 2.34% | 2.40% | 2.16% | 2.18% | 2.28% |
| Expenses net of fee waivers, if any | 2.20%H | 2.20% | 2.20% | 2.16% | 2.18% | 2.20% |
| Expenses net of all reductions | 2.20%H | 2.19% | 2.20% | 2.13% | 2.16% | 2.18% |
| Net investment income (loss) | (.84)%H | (.82)% | (.67)% | (.45)% | (.53)% | (.99)% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $20,376 | $21,186 | $15,747 | $13,055 | $9,421 | $11,632 |
| Portfolio turnover rateI | 114%H | 176% | 249% | 211% | 155% | 140% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Capital Appreciation Fund Class I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $16.55 | $15.92 | $14.18 | $10.78 | $9.88 | $11.76 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .01 | .03 | .05 | .09 | .06 | –B |
| Net realized and unrealized gain (loss) | (.19) | .60 | 1.82 | 3.33 | .84 | (1.82) |
| Total from investment operations | (.18) | .63 | 1.87 | 3.42 | .90 | (1.82) |
| Distributions from net investment income | – | – | (.06) | (.02) | – | – |
| Distributions from net realized gain | (.09) | – | (.06) | – | – | (.06) |
| Total distributions | (.09) | – | (.13)C | (.02) | – | (.06) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $16.28 | $16.55 | $15.92 | $14.18 | $10.78 | $9.88 |
| Total ReturnD,E | (1.11)% | 3.96% | 13.27% | 31.74% | 9.11% | (15.60)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 1.25%H | 1.26% | 1.29% | 1.02% | 1.06% | 1.18% |
| Expenses net of fee waivers, if any | 1.20%H | 1.20% | 1.20% | 1.02% | 1.06% | 1.17% |
| Expenses net of all reductions | 1.20%H | 1.19% | 1.20% | .99% | 1.03% | 1.15% |
| Net investment income (loss) | .16%H | .18% | .33% | .69% | .59% | .04% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $57,008 | $59,117 | $39,159 | $30,153 | $22,548 | $28,725 |
| Portfolio turnover rateI | 114%H | 176% | 249% | 211% | 155% | 140% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total distributions of $.13 per share is comprised of distributions from net investment income of $.064 and distributions from net realized gain of $.064 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2016
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 Class I shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a maximum holding period of seven years from the initial date of purchase. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective on or about July 1, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of April 30, 2016, including information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), partnerships, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
| Gross unrealized appreciation | $16,414,631 |
| Gross unrealized depreciation | (6,529,874) |
| Net unrealized appreciation (depreciation) on securities | $9,884,757 |
| Tax cost | $133,674,411 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $75,516,537 and $82,090,398, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to its benchmark index, the MSCI All Country World Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .86% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
| Class A | -% | .25% | $49,403 | $– |
| Class T | .25% | .25% | 56,128 | – |
| Class B | .75% | .25% | 3,745 | 2,809 |
| Class C | .75% | .25% | 101,093 | 20,614 |
| | | | $210,369 | $23,423 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $8,015 |
| Class T | 1,944 |
| Class B(a) | 71 |
| Class C(a) | 893 |
| | $10,923 |
(a) When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| | Amount | % of
Class-Level Average
Net Assets(a) |
| Class A | $45,513 | .23 |
| Class T | 32,421 | .29 |
| Class B | 1,134 | .30 |
| Class C | 24,445 | .24 |
| Class I | 42,703 | .15 |
| | $146,216 | |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1,145 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $123 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $103,090. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $15,272, including $1,875 from securities loaned to FCM.
8. Expense Reductions.
The investment adviser contractually agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. This reimbursement will remain in place through December 31, 2016. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| | Expense
Limitations | Reimbursement |
| Class A | 1.45% | $24,783 |
| Class T | 1.70% | 20,810 |
| Class B | 2.20% | 756 |
| Class C | 2.20% | 13,825 |
| Class I | 1.20% | 13,586 |
| | | $73,760 |
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $990 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $5.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund level operating expenses in the amount of $524.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| From net realized gain | | |
| Class A | $232,217 | $– |
| Class T | 141,812 | – |
| Class B | 5,345 | – |
| Class C | 134,701 | – |
| Class I | 319,764 | – |
| Total | $833,839 | $– |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| Class A | | | | |
| Shares sold | 246,810 | 1,624,998 | $3,728,112 | $27,021,428 |
| Reinvestment of distributions | 14,077 | – | 225,941 | – |
| Shares redeemed | (259,211) | (1,379,091) | (3,890,585) | (22,009,282) |
| Net increase (decrease) | 1,676 | 245,907 | $63,468 | $5,012,146 |
| Class T | | | | |
| Shares sold | 99,564 | 370,447 | $1,479,015 | $5,817,431 |
| Reinvestment of distributions | 9,033 | – | 139,646 | – |
| Shares redeemed | (206,046) | (219,006) | (2,936,172) | (3,388,077) |
| Net increase (decrease) | (97,449) | 151,441 | $(1,317,511) | $2,429,354 |
| Class B | | | | |
| Shares sold | 179 | 8,363 | $2,344 | $124,801 |
| Reinvestment of distributions | 351 | – | 5,016 | – |
| Shares redeemed | (16,620) | (35,011) | (220,477) | (502,734) |
| Net increase (decrease) | (16,090) | (26,648) | $(213,117) | $(377,933) |
| Class C | | | | |
| Shares sold | 109,969 | 572,578 | $1,489,253 | $8,431,576 |
| Reinvestment of distributions | 8,899 | – | 126,727 | – |
| Shares redeemed | (143,970) | (219,967) | (1,921,940) | (3,119,457) |
| Net increase (decrease) | (25,102) | 352,611 | $(305,960) | $5,312,119 |
| Class I | | | | |
| Shares sold | 262,748 | 1,401,232 | $4,181,938 | $23,612,800 |
| Reinvestment of distributions | 18,757 | – | 313,609 | – |
| Shares redeemed | (352,690) | (288,809) | (5,630,328) | (4,841,280) |
| Net increase (decrease) | (71,185) | 1,112,423 | $(1,134,781) | $18,771,520 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, Strategic Advisers International II Fund was the owner of record of approximately 17% of the total outstanding shares of the Fund.
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, 2015 to April 30, 2016).
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.
| | Annualized Expense Ratio-A | Beginning
Account Value
November 1, 2015 | Ending
Account Value
April 30, 2016 | Expenses Paid
During Period-B
November 1, 2015
to April 30, 2016 |
| Class A | 1.45% | | | |
| Actual | | $1,000.00 | $987.80 | $7.17 |
| Hypothetical-C | | $1,000.00 | $1,017.65 | $7.27 |
| Class T | 1.70% | | | |
| Actual | | $1,000.00 | $986.70 | $8.40 |
| Hypothetical-C | | $1,000.00 | $1,016.41 | $8.52 |
| Class B | 2.20% | | | |
| Actual | | $1,000.00 | $984.20 | $10.85 |
| Hypothetical-C | | $1,000.00 | $1,013.92 | $11.02 |
| Class C | 2.20% | | | |
| Actual | | $1,000.00 | $984.20 | $10.85 |
| Hypothetical-C | | $1,000.00 | $1,013.92 | $11.02 |
| Class I | 1.20% | | | |
| Actual | | $1,000.00 | $988.90 | $5.93 |
| Hypothetical-C | | $1,000.00 | $1,018.90 | $6.02 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
C 5% return per year before expenses
AGLO-SANN-0616
1.719689.117
Fidelity Advisor® Emerging Asia Fund
Class A, Class T, Class B and Class C
Semi-Annual Report April 30, 2016 |
|
Contents
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. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Samsung Electronics Co. Ltd. | 5.0 | 6.3 |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 4.4 | 4.1 |
| Tencent Holdings Ltd. | 4.0 | 3.7 |
| AIA Group Ltd. | 2.8 | 2.9 |
| China Construction Bank Corp. (H Shares) | 2.4 | 2.7 |
| Alibaba Group Holding Ltd. sponsored ADR | 2.1 | 0.8 |
| Hon Hai Precision Industry Co. Ltd. (Foxconn) | 1.8 | 1.9 |
| Industrial & Commercial Bank of China Ltd. (H Shares) | 1.7 | 1.9 |
| CNOOC Ltd. sponsored ADR | 1.5 | 1.4 |
| China Mobile Ltd. | 1.4 | 1.6 |
| | 27.1 | |
Top Five Market Sectors as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Financials | 31.6 | 35.3 |
| Information Technology | 23.0 | 22.1 |
| Consumer Discretionary | 9.4 | 9.0 |
| Industrials | 6.1 | 5.5 |
| Telecommunication Services | 5.9 | 7.1 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2016 |
| | Stocks | 99.7% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 0.3% |
| As of October 31, 2015 |
| | Stocks | 98.4% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 1.6% |
Investments April 30, 2016 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 99.7% | | | |
| | | Shares | Value |
| Australia - 0.2% | | | |
| Beacon Lighting Group Ltd. | | 122,049 | $168,896 |
| Sino Gas & Energy Ltd. (a) | | 1,335,338 | 90,364 |
| Woodside Petroleum Ltd. | | 12,043 | 259,506 |
|
| TOTAL AUSTRALIA | | | 518,766 |
|
| Bermuda - 2.8% | | | |
| Brilliance China Automotive Holdings Ltd. | | 782,000 | 771,322 |
| BW LPG Ltd. | | 9,210 | 55,362 |
| Cheung Kong Infrastructure Holdings Ltd. | | 86,000 | 811,618 |
| CSI Properties Ltd. | | 8,640,000 | 262,433 |
| Digital China Holdings Ltd. (H Shares) | | 308,000 | 212,638 |
| Great Eagle Holdings Ltd. | | 39,000 | 157,978 |
| Hongkong Land Holdings Ltd. | | 172,700 | 1,096,645 |
| Joy City Property Ltd. | | 760,000 | 110,257 |
| Kerry Logistics Network Ltd. | | 423,000 | 595,483 |
| PAX Global Technology Ltd. | | 610,000 | 525,345 |
| Shenzhen International Holdings Ltd. | | 550,000 | 897,528 |
| Skyworth Digital Holdings Ltd. | | 1,455,448 | 947,222 |
| Summit Ascent Holdings Ltd. (a) | | 270,000 | 57,895 |
| Tai Cheung Holdings Ltd. | | 67,000 | 51,255 |
|
| TOTAL BERMUDA | | | 6,552,981 |
|
| Cayman Islands - 15.4% | | | |
| 58.com, Inc. ADR (a) | | 15,800 | 863,470 |
| Alibaba Group Holding Ltd. sponsored ADR (a) | | 61,500 | 4,731,810 |
| AMVIG Holdings Ltd. | | 348,000 | 143,292 |
| Belle International Holdings Ltd. | | 713,000 | 434,827 |
| Bitauto Holdings Ltd. ADR (a) | | 11,000 | 274,560 |
| Cheung Kong Property Holdings Ltd. | | 418,500 | 2,858,142 |
| China Modern Dairy Holdings Ltd. | | 1,792,000 | 328,889 |
| China Resources Cement Holdings Ltd. | | 2,469,972 | 812,753 |
| China State Construction International Holdings Ltd. | | 634,000 | 987,585 |
| ChinaCache International Holdings Ltd. sponsored ADR (a) | | 12,300 | 101,721 |
| CK Hutchison Holdings Ltd. | | 252,000 | 3,014,833 |
| Cosmo Lady (China) Holdings Co. Ltd. | | 154,000 | 119,520 |
| Ctrip.com International Ltd. ADR (a) | | 21,500 | 937,615 |
| Daqo New Energy Corp. ADR (a) | | 5,551 | 144,048 |
| ENN Energy Holdings Ltd. | | 238,000 | 1,160,878 |
| Greatview Aseptic Pack Co. Ltd. | | 661,000 | 334,748 |
| Haitian International Holdings Ltd. | | 144,000 | 245,687 |
| iKang Healthcare Group, Inc. sponsored ADR (a) | | 5,300 | 113,844 |
| International Housewares Retail Co. Ltd. | | 1,909,000 | 312,007 |
| JD.com, Inc. sponsored ADR (a) | | 33,800 | 863,928 |
| KWG Property Holding Ltd. | | 373,000 | 241,332 |
| Lee & Man Paper Manufacturing Ltd. | | 1,299,000 | 851,396 |
| Lee's Pharmaceutical Holdings Ltd. | | 93,000 | 75,250 |
| Longfor Properties Co. Ltd. | | 791,000 | 1,109,706 |
| MGM China Holdings Ltd. | | 1,046,000 | 1,465,515 |
| New Oriental Education & Technology Group, Inc. sponsored ADR | | 16,500 | 646,140 |
| Pico Far East Holdings Ltd. | | 650,000 | 176,227 |
| Samson Holding Ltd. | | 1,152,000 | 132,030 |
| SITC International Holdings Co. Ltd. | | 809,000 | 437,241 |
| Sitoy Group Holdings Ltd. | | 303,000 | 110,015 |
| SOHO China Ltd. | | 745,000 | 374,556 |
| Stella International Holdings Ltd. | | 108,500 | 273,727 |
| TAL Education Group ADR (a) | | 10,700 | 619,102 |
| TCC International Holdings Ltd. | | 586,000 | 117,444 |
| Tencent Holdings Ltd. | | 451,500 | 9,187,265 |
| Uni-President China Holdings Ltd. | | 658,000 | 612,775 |
| Xingda International Holdings Ltd. | | 606,000 | 126,816 |
| Zhen Ding Technology Holding Ltd. | | 80,000 | 168,158 |
|
| TOTAL CAYMAN ISLANDS | | | 35,508,852 |
|
| China - 13.9% | | | |
| Anhui Conch Cement Co. Ltd. (H Shares) | | 255,500 | 673,260 |
| BBMG Corp. (H Shares) | | 1,141,500 | 834,240 |
| Beijing Jingneng Clean Energy Co. Ltd. (H Shares) | | 774,000 | 244,204 |
| Beijing Urban Consolidated & Development Group Ltd. (H Shares) | | 435,000 | 251,260 |
| China Construction Bank Corp. (H Shares) | | 8,847,000 | 5,618,969 |
| China Pacific Insurance (Group) Co. Ltd. (H Shares) | | 536,000 | 1,879,455 |
| China Petroleum & Chemical Corp. (H Shares) | | 3,166,000 | 2,231,032 |
| China Railway Construction Corp. Ltd. (H Shares) | | 899,000 | 1,142,892 |
| China Shipping Development Co. Ltd. (H Shares) | | 496,000 | 352,190 |
| China Telecom Corp. Ltd. (H Shares) | | 4,554,000 | 2,254,532 |
| China Vanke Co. Ltd. (H Shares) | | 484,100 | 1,208,326 |
| Chongqing Changan Automobile Co. Ltd. (B Shares) | | 177,600 | 307,261 |
| Huadian Fuxin Energy Corp. Ltd. (H Shares) | | 1,836,000 | 399,940 |
| Huadian Power International Corp. Ltd. (H Shares) | | 1,120,000 | 574,300 |
| Huaneng Renewables Corp. Ltd. (H Shares) | | 3,438,000 | 1,014,500 |
| Huangshan Tourism Development Co. Ltd. | | 78,700 | 165,113 |
| Industrial & Commercial Bank of China Ltd. (H Shares) | | 7,392,000 | 3,957,684 |
| Jiangling Motors Corp. Ltd. (B Shares) | | 84,001 | 231,637 |
| Jiangsu Hengrui Medicine Co. Ltd. | | 128,121 | 923,794 |
| Kweichow Moutai Co. Ltd. | | 34,683 | 1,345,737 |
| PICC Property & Casualty Co. Ltd. (H Shares) | | 765,060 | 1,391,704 |
| Ping An Insurance (Group) Co. of China Ltd. (H Shares) | | 655,000 | 3,073,970 |
| SAIC Motor Corp. Ltd. | | 108,951 | 342,299 |
| Shenzhen Expressway Co. (H Shares) | | 970,000 | 860,880 |
| Tong Ren Tang Technologies Co. Ltd. (H Shares) | | 173,000 | 271,015 |
| TravelSky Technology Ltd. (H Shares) | | 230,000 | 427,416 |
|
| TOTAL CHINA | | | 31,977,610 |
|
| Hong Kong - 12.4% | | | |
| AIA Group Ltd. | | 1,090,200 | 6,524,417 |
| China Everbright Ltd. | | 426,000 | 840,949 |
| China Mobile Ltd. | | 284,000 | 3,260,539 |
| China Resources Beer Holdings Co. Ltd. | | 366,000 | 804,252 |
| China Resources Power Holdings Co. Ltd. | | 406,904 | 685,328 |
| CNOOC Ltd. sponsored ADR | | 27,800 | 3,431,354 |
| Dah Sing Banking Group Ltd. | | 156,400 | 278,249 |
| Far East Horizon Ltd. | | 696,000 | 552,469 |
| Hang Lung Properties Ltd. | | 529,000 | 1,053,331 |
| HKT Trust/HKT Ltd. unit | | 800,500 | 1,150,671 |
| Hysan Development Co. Ltd. | | 300,000 | 1,325,540 |
| Lenovo Group Ltd. | | 1,554,000 | 1,229,357 |
| Magnificent Hotel Investment L | | 1,896,000 | 46,848 |
| PCCW Ltd. | | 2,945,000 | 1,993,422 |
| Power Assets Holdings Ltd. | | 164,500 | 1,565,068 |
| Sino Land Ltd. | | 930,000 | 1,460,049 |
| Techtronic Industries Co. Ltd. | | 335,500 | 1,257,679 |
| Wheelock and Co. Ltd. | | 243,000 | 1,124,994 |
|
| TOTAL HONG KONG | | | 28,584,516 |
|
| India - 10.0% | | | |
| Adani Ports & Special Economic Zone | | 105,877 | 379,672 |
| Apollo Tyres Ltd. | | 376,894 | 908,681 |
| Bajaj Finserv Ltd. | | 23,752 | 670,576 |
| Bharat Petroleum Corp. Ltd. (a) | | 54,797 | 806,791 |
| Bharti Infratel Ltd. | | 97,958 | 552,941 |
| Cox & Kings India Ltd. (a) | | 186,142 | 523,884 |
| Edelweiss Financial Services Ltd. | | 582,303 | 508,881 |
| Exide Industries Ltd. (a) | | 58,385 | 129,426 |
| HCL Technologies Ltd. | | 79,888 | 902,364 |
| Hexaware Technologies Ltd. | | 147,520 | 535,665 |
| IL&FS Transportation Networks Ltd. | | 92,782 | 104,130 |
| Indian Oil Corp. Ltd. (a) | | 165,622 | 1,080,244 |
| Jain Irrigation Systems Ltd. (a) | | 131,603 | 121,052 |
| JK Tyre & Industries Ltd. (a) | | 343,022 | 434,293 |
| Just Dial Ltd. | | 16,345 | 208,282 |
| LIC Housing Finance Ltd. (a) | | 38,856 | 270,425 |
| Mahindra & Mahindra Ltd. (a) | | 78,993 | 1,582,762 |
| McLeod Russel India Ltd. (a) | | 94,682 | 271,180 |
| NTPC Ltd. | | 475,579 | 997,330 |
| Petronet LNG Ltd. | | 269,968 | 1,071,126 |
| Power Finance Corp. Ltd. | | 208,039 | 561,709 |
| Power Grid Corp. of India Ltd. | | 165,050 | 356,312 |
| Redington India Ltd. (a) | | 147,398 | 240,983 |
| Reliance Capital Ltd. (a) | | 20,100 | 122,415 |
| Reliance Industries Ltd. | | 197,600 | 2,923,298 |
| Shriram City Union Finance Ltd. | | 9,151 | 226,889 |
| Sun Pharmaceutical Industries Ltd. | | 133,254 | 1,627,522 |
| Suzlon Energy Ltd. (a) | | 2,328,254 | 524,007 |
| The Jammu & Kashmir Bank Ltd. | | 305,332 | 315,787 |
| Torrent Pharmaceuticals Ltd. | | 32,031 | 689,680 |
| UPL Ltd. | | 101,887 | 825,060 |
| Vakrangee Ltd. (a) | | 44,068 | 131,025 |
| VST Industries Ltd. (a) | | 11,571 | 284,583 |
| Yes Bank Ltd. (a) | | 145,155 | 2,060,563 |
|
| TOTAL INDIA | | | 22,949,538 |
|
| Indonesia - 1.9% | | | |
| PT ACE Hardware Indonesia Tbk | | 3,485,600 | 244,478 |
| PT Bank Rakyat Indonesia Tbk | | 2,849,200 | 2,236,065 |
| PT Gudang Garam Tbk | | 225,100 | 1,181,997 |
| PT Indofood Sukses Makmur Tbk | | 1,373,100 | 741,836 |
|
| TOTAL INDONESIA | | | 4,404,376 |
|
| Israel - 0.1% | | | |
| Sarine Technologies Ltd. | | 96,600 | 118,519 |
| Japan - 0.8% | | | |
| KDDI Corp. | | 38,900 | 1,120,543 |
| NGK Insulators Ltd. | | 38,000 | 780,389 |
|
| TOTAL JAPAN | | | 1,900,932 |
|
| Korea (South) - 18.4% | | | |
| AMOREPACIFIC Corp. | | 5,313 | 1,889,757 |
| AMOREPACIFIC Group, Inc. | | 7,820 | 1,146,713 |
| BGFretail Co. Ltd. | | 1,360 | 220,796 |
| Daelim Industrial Co. | | 10,094 | 799,115 |
| DGB Financial Group Co. Ltd. | | 71,954 | 575,921 |
| Dongbu Insurance Co. Ltd. | | 25,554 | 1,563,563 |
| Duksan Hi-Metal Co. Ltd. (a) | | 19,218 | 159,021 |
| Fila Korea Ltd. | | 1,381 | 125,362 |
| Hana Financial Group, Inc. | | 29,919 | 669,843 |
| Hyosung Corp. | | 7,775 | 831,333 |
| Hyundai Fire & Marine Insurance Co. Ltd. | | 21,440 | 595,101 |
| Hyundai Mobis | | 8,762 | 1,992,276 |
| Hyundai Motor Co. | | 25,267 | 3,164,785 |
| Hyundai Steel Co. | | 29,547 | 1,622,193 |
| KB Financial Group, Inc. | | 57,114 | 1,737,952 |
| Kiwoom Securities Co. Ltd. | | 5,750 | 340,782 |
| Korea Electric Power Corp. | | 35,446 | 1,914,837 |
| Korea Petro Chemical Industries Co. Ltd. | | 6,662 | 1,369,412 |
| Korea Zinc Co. Ltd. | | 3,080 | 1,332,088 |
| LG Chemical Ltd. | | 6,812 | 1,765,914 |
| LG Household & Health Care Ltd. | | 2,070 | 1,819,443 |
| LS Industrial Systems Ltd. | | 13,820 | 630,882 |
| Poongsan Corp. | | 12,000 | 333,602 |
| Samsung Card Co. Ltd. | | 15,092 | 511,113 |
| Samsung Electronics Co. Ltd. | | 10,594 | 11,512,450 |
| Shinhan Financial Group Co. Ltd. | | 84,306 | 3,074,228 |
| SK Telecom Co. Ltd. | | 3,468 | 626,337 |
|
| TOTAL KOREA (SOUTH) | | | 42,324,819 |
|
| Malaysia - 1.9% | | | |
| AEON Credit Service Bhd | | 45,500 | 153,511 |
| Cahya Mata Sarawak Bhd | | 185,000 | 181,851 |
| Glomac Bhd | | 439,300 | 91,650 |
| Media Prima Bhd | | 965,200 | 348,376 |
| MISC Bhd | | 196,800 | 425,691 |
| Sunway Bhd | | 314,300 | 251,826 |
| Tenaga Nasional Bhd | | 562,400 | 2,067,340 |
| Top Glove Corp. Bhd | | 137,300 | 174,327 |
| YTL Power International Bhd | | 1,972,800 | 757,507 |
|
| TOTAL MALAYSIA | | | 4,452,079 |
|
| Netherlands - 0.2% | | | |
| Gree Electric Appliances, Inc. of Zhuhai ELS (BNP Paribas Warrants Program) (A Shares)warrants 11/24/16 (a)(b) | | 147,900 | 439,082 |
| Hangzhou Hikvision Digital Technology Co. Ltd. ELS (BNP Paribas Warrant Program) warrants 11/27/17 (a)(b) | | 26,600 | 125,192 |
|
| TOTAL NETHERLANDS | | | 564,274 |
|
| Philippines - 1.0% | | | |
| ABS CBN Broadcasting Corp. (depositary receipt) | | 97,800 | 120,600 |
| LT Group, Inc. | | 337,300 | 110,437 |
| Metro Pacific Investments Corp. | | 3,647,600 | 449,794 |
| Metropolitan Bank & Trust Co. | | 626,360 | 1,081,997 |
| Security Bank Corp. | | 135,766 | 490,703 |
|
| TOTAL PHILIPPINES | | | 2,253,531 |
|
| Singapore - 3.8% | | | |
| Boustead Singapore Ltd. | | 178,048 | 103,266 |
| CapitaLand Ltd. | | 410,000 | 948,135 |
| Centurion Corp. Ltd. | | 254,500 | 70,965 |
| CWT Ltd. | | 83,600 | 128,678 |
| Frasers Centrepoint Ltd. | | 120,000 | 149,013 |
| Hyflux Ltd. | | 277,200 | 127,794 |
| Mapletree Industrial (REIT) | | 707,893 | 844,829 |
| Singapore Telecommunications Ltd. | | 729,100 | 2,092,669 |
| United Overseas Bank Ltd. | | 187,700 | 2,595,992 |
| UOL Group Ltd. | | 165,000 | 753,318 |
| Wing Tai Holdings Ltd. | | 540,900 | 754,127 |
| Yoma Strategic Holdings Ltd. (a) | | 357,300 | 143,467 |
|
| TOTAL SINGAPORE | | | 8,712,253 |
|
| Taiwan - 13.6% | | | |
| Advanced Semiconductor Engineering, Inc. | | 1,499,000 | 1,440,158 |
| ASUSTeK Computer, Inc. | | 111,000 | 974,166 |
| Cathay Financial Holding Co. Ltd. | | 1,715,000 | 1,924,550 |
| China Life Insurance Co. Ltd. | | 728,000 | 548,766 |
| E.SUN Financial Holdings Co. Ltd. | | 3,271,748 | 1,812,968 |
| Fubon Financial Holding Co. Ltd. | | 1,640,000 | 1,992,694 |
| Hon Hai Precision Industry Co. Ltd. (Foxconn) | | 1,695,850 | 4,047,613 |
| Mega Financial Holding Co. Ltd. | | 1,224,000 | 867,709 |
| Nanya Technology Corp. | | 90,000 | 105,037 |
| Nien Made Enterprise Co. Ltd. | | 16,852 | 132,508 |
| Novatek Microelectronics Corp. | | 106,000 | 370,801 |
| PChome Online, Inc. | | 23,814 | 252,493 |
| Pegatron Corp. | | 914,000 | 1,932,520 |
| Pou Chen Corp. | | 749,000 | 943,699 |
| Powertech Technology, Inc. | | 176,000 | 356,326 |
| Taiwan Semiconductor Manufacturing Co. Ltd. | | 2,226,393 | 10,213,040 |
| Unified-President Enterprises Corp. | | 860,000 | 1,549,454 |
| Vanguard International Semiconductor Corp. | | 386,000 | 590,896 |
| Wistron NeWeb Corp. | | 173,700 | 451,686 |
| Yuanta Financial Holding Co. Ltd. | | 2,172,321 | 716,194 |
|
| TOTAL TAIWAN | | | 31,223,278 |
|
| Thailand - 2.3% | | | |
| Asian Property Development PCL (For. Reg.) | | 3,487,500 | 599,227 |
| Bangkok Expressway and Metro PCL | | 3,490,714 | 594,781 |
| Intouch Holdings PCL: | | | |
| (For. Reg.) | | 322,401 | 487,018 |
| NVDR | | 38,500 | 58,158 |
| Kasikornbank PCL (For. Reg.) | | 451,900 | 2,161,148 |
| Preuksa Real Estate PCL (For. Reg.) | | 643,800 | 474,738 |
| Thai Beverage PCL | | 1,779,300 | 985,670 |
|
| TOTAL THAILAND | | | 5,360,740 |
|
| United Kingdom - 0.3% | | | |
| Standard Chartered PLC (United Kingdom) | | 77,871 | 628,186 |
| United States of America - 0.7% | | | |
| China Biologic Products, Inc. (a) | | 6,400 | 748,800 |
| Cognizant Technology Solutions Corp. Class A (a) | | 7,700 | 449,449 |
| Las Vegas Sands Corp. | | 11,100 | 501,165 |
|
| TOTAL UNITED STATES OF AMERICA | | | 1,699,414 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $212,919,010) | | | 229,734,664 |
| | | Principal Amount(c) | Value |
|
| Nonconvertible Bonds - 0.0% | | | |
| India - 0.0% | | | |
NTPC Ltd. 8.49% 3/25/25
(Cost $123,312) | | 615,670 | 118,710 |
| | | Shares | Value |
|
| Money Market Funds - 0.3% | | | |
| Fidelity Cash Central Fund, 0.38% (d) | | | |
| (Cost $646,248) | | 646,248 | 646,248 |
| TOTAL INVESTMENT PORTFOLIO - 100.0% | | | |
| (Cost $213,688,570) | | | 230,499,622 |
| NET OTHER ASSETS (LIABILITIES) - 0.0% | | | (72,139) |
| NET ASSETS - 100% | | | $230,427,483 |
Currency Abbreviations
INR – Indian rupee
Security Type Abbreviations
ELS – Equity-Linked Security
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) 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 $564,274 or 0.2% of net assets.
(c) Amount is stated in United States dollars unless otherwise noted.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $1,319 |
| Fidelity Securities Lending Cash Central Fund | 4,325 |
| Total | $5,644 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2016, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Consumer Discretionary | $21,679,006 | $15,505,251 | $6,173,755 | $-- |
| Consumer Staples | 13,183,082 | 11,437,166 | 1,745,916 | -- |
| Energy | 12,052,343 | 9,821,311 | 2,231,032 | -- |
| Financials | 73,593,039 | 32,760,820 | 40,832,219 | -- |
| Health Care | 4,624,232 | 4,277,967 | 346,265 | -- |
| Industrials | 13,742,678 | 4,118,815 | 9,623,863 | -- |
| Information Technology | 52,739,763 | 29,504,544 | 23,235,219 | -- |
| Materials | 11,846,735 | 8,079,602 | 3,767,133 | -- |
| Telecommunication Services | 13,596,830 | 3,190,786 | 10,406,044 | -- |
| Utilities | 12,676,956 | 4,306,283 | 8,370,673 | -- |
| Corporate Bonds | 118,710 | -- | 118,710 | -- |
| Money Market Funds | 646,248 | 646,248 | -- | -- |
| Total Investments in Securities: | $230,499,622 | $123,648,793 | $106,850,829 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2016. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
| Transfers | Total |
| Level 1 to Level 2 | $0 |
| Level 2 to Level 1 | $48,737,769 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | April 30, 2016 (Unaudited) |
| Assets | | |
Investment in securities, at value — See accompanying schedule:
Unaffiliated issuers (cost $213,042,322) | $229,853,374 | |
| Fidelity Central Funds (cost $646,248) | 646,248 | |
| Total Investments (cost $213,688,570) | | $230,499,622 |
| Cash | | 16,992 |
| Foreign currency held at value (cost $72,174) | | 72,413 |
| Receivable for investments sold | | 117,408 |
| Receivable for fund shares sold | | 55,098 |
| Dividends receivable | | 178,609 |
| Interest receivable | | 80 |
| Distributions receivable from Fidelity Central Funds | | 106 |
| Prepaid expenses | | 214 |
| Other receivables | | 136,685 |
| Total assets | | 231,077,227 |
| Liabilities | | |
| Payable for fund shares redeemed | $320,736 | |
| Accrued management fee | 136,449 | |
| Transfer agent fee payable | 49,110 | |
| Distribution and service plan fees payable | 76,871 | |
| Other affiliated payables | 10,107 | |
| Audit fee payable | 37,530 | |
| Other payables and accrued expenses | 18,941 | |
| Total liabilities | | 649,744 |
| Net Assets | | $230,427,483 |
| Net Assets consist of: | | |
| Paid in capital | | $221,048,271 |
| Accumulated net investment loss | | (586,010) |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (6,789,211) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 16,754,433 |
| Net Assets | | $230,427,483 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($111,289,402 ÷ 4,045,838 shares) | | $27.51 |
| Maximum offering price per share (100/94.25 of $27.51) | | $29.19 |
| Class T: | | |
| Net Asset Value and redemption price per share ($33,990,662 ÷ 1,270,089 shares) | | $26.76 |
| Maximum offering price per share (100/96.50 of $26.76) | | $27.73 |
| Class B: | | |
| Net Asset Value and offering price per share ($2,658,035 ÷ 104,293 shares)(a) | | $25.49 |
| Class C: | | |
| Net Asset Value and offering price per share ($43,350,455 ÷ 1,726,044 shares)(a) | | $25.12 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($39,138,929 ÷ 1,382,319 shares) | | $28.31 |
(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.
Statement of Operations
| | | Six months ended April 30, 2016 (Unaudited) |
| Investment Income | | |
| Dividends | | $1,917,733 |
| Interest | | 9,519 |
| Income from Fidelity Central Funds | | 5,644 |
| Income before foreign taxes withheld | | 1,932,896 |
| Less foreign taxes withheld | | (184,341) |
| Total income | | 1,748,555 |
| Expenses | | |
| Management fee | $827,429 | |
| Transfer agent fees | 308,586 | |
| Distribution and service plan fees | 464,410 | |
| Accounting and security lending fees | 61,547 | |
| Custodian fees and expenses | 87,429 | |
| Independent trustees' compensation | 531 | |
| Registration fees | 63,254 | |
| Audit | 60,896 | |
| Legal | 367 | |
| Miscellaneous | 878 | |
| Total expenses before reductions | 1,875,327 | |
| Expense reductions | (1,871) | 1,873,456 |
| Net investment income (loss) | | (124,901) |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (6,229,670) | |
| Foreign currency transactions | (8,979) | |
| Total net realized gain (loss) | | (6,238,649) |
Change in net unrealized appreciation (depreciation) on:
Investment securities (net of decrease in deferred foreign taxes of $234) | (2,620,181) | |
| Assets and liabilities in foreign currencies | (1,134) | |
| Total change in net unrealized appreciation (depreciation) | | (2,621,315) |
| Net gain (loss) | | (8,859,964) |
| Net increase (decrease) in net assets resulting from operations | | $(8,984,865) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended April 30, 2016 (Unaudited) | Year ended October 31, 2015 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $(124,901) | $2,639,231 |
| Net realized gain (loss) | (6,238,649) | 3,695,951 |
| Change in net unrealized appreciation (depreciation) | (2,621,315) | (25,581,869) |
| Net increase (decrease) in net assets resulting from operations | (8,984,865) | (19,246,687) |
| Distributions to shareholders from net investment income | (1,665,857) | (1,398,621) |
| Distributions to shareholders from net realized gain | (2,157,468) | (15,842,060) |
| Total distributions | (3,823,325) | (17,240,681) |
| Share transactions - net increase (decrease) | (26,827,173) | 4,069,053 |
| Redemption fees | 9,137 | 145,305 |
| Total increase (decrease) in net assets | (39,626,226) | (32,273,010) |
| Net Assets | | |
| Beginning of period | 270,053,709 | 302,326,719 |
| End of period (including accumulated net investment loss of $586,010 and undistributed net investment income of $1,204,748, respectively) | $230,427,483 | $270,053,709 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Asia Fund Class A
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| April 30, | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $28.75 | $32.05 | $31.34 | $28.87 | $28.70 | $32.97 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | –B | .31 | .30 | .30 | .34 | .35 |
| Net realized and unrealized gain (loss) | (.79) | (1.76) | 2.00C | 2.59 | 1.37 | (2.62) |
| Total from investment operations | (.79) | (1.45) | 2.30 | 2.89 | 1.71 | (2.27) |
| Distributions from net investment income | (.22) | (.18) | (.26) | (.33) | (.31) | (.20) |
| Distributions from net realized gain | (.23) | (1.67) | (1.33) | (.09) | (1.23) | (1.81) |
| Total distributions | (.45) | (1.86)D | (1.59) | (.42) | (1.54) | (2.01) |
| Redemption fees added to paid in capitalA | –B | .01 | –B | –B | –B | .01 |
| Net asset value, end of period | $27.51 | $28.75 | $32.05 | $31.34 | $28.87 | $28.70 |
| Total ReturnE,F,G | (2.77)% | (4.78)% | 7.70%C | 10.10% | 6.36% | (7.44)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.45%J | 1.37% | 1.42% | 1.41% | 1.42% | 1.39% |
| Expenses net of fee waivers, if any | 1.45%J | 1.37% | 1.42% | 1.41% | 1.42% | 1.39% |
| Expenses net of all reductions | 1.45%J | 1.36% | 1.42% | 1.38% | 1.38% | 1.35% |
| Net investment income (loss) | .03%J | 1.00% | .96% | .99% | 1.24% | 1.12% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $111,289 | $125,528 | $145,184 | $155,104 | $160,427 | $179,346 |
| Portfolio turnover rateK | 51%J | 70% | 91% | 95% | 95% | 119% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C In 2014, a change to the Indian tax rules invalidated a prior ruling that had exempted the Fund from taxes on realized gains. As a result, the fund recorded a tax liability which resulted in a decrease to realized and unrealized gain (loss) per share of $.18 at period end. Excluding this amount, the total return would have been 8.29%.
D Total distributions of $1.86 per share is comprised of distributions from net investment income of $.183 and distributions from net realized gain of $1.674 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Asia Fund Class T
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $27.93 | $31.17 | $30.53 | $28.13 | $27.98 | $32.20 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.04) | .21 | .20 | .20 | .25 | .25 |
| Net realized and unrealized gain (loss) | (.77) | (1.71) | 1.94B | 2.54 | 1.33 | (2.55) |
| Total from investment operations | (.81) | (1.50) | 2.14 | 2.74 | 1.58 | (2.30) |
| Distributions from net investment income | (.13) | (.08) | (.17) | (.25) | (.20) | (.12) |
| Distributions from net realized gain | (.23) | (1.67) | (1.33) | (.09) | (1.23) | (1.81) |
| Total distributions | (.36) | (1.75) | (1.50) | (.34) | (1.43) | (1.93) |
| Redemption fees added to paid in capitalA | –C | .01 | –C | –C | –C | .01 |
| Net asset value, end of period | $26.76 | $27.93 | $31.17 | $30.53 | $28.13 | $27.98 |
| Total ReturnD,E,F | (2.92)% | (5.05)% | 7.34%B | 9.80% | 6.04% | (7.70)% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 1.75%I | 1.68% | 1.73% | 1.70% | 1.70% | 1.70% |
| Expenses net of fee waivers, if any | 1.75%I | 1.68% | 1.73% | 1.70% | 1.70% | 1.69% |
| Expenses net of all reductions | 1.75%I | 1.67% | 1.73% | 1.67% | 1.67% | 1.65% |
| Net investment income (loss) | (.27)%I | .69% | .66% | .70% | .95% | .82% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $33,991 | $37,720 | $44,563 | $47,620 | $49,359 | $55,452 |
| Portfolio turnover rateJ | 51%I | 70% | 91% | 95% | 95% | 119% |
A Calculated based on average shares outstanding during the period.
B In 2014, a change to the Indian tax rules invalidated a prior ruling that had exempted the Fund from taxes on realized gains. As a result, the fund recorded a tax liability which resulted in a decrease to realized and unrealized gain (loss) per share of $.18 at period end. Excluding this amount, the total return would have been 7.93%.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Asia Fund Class B
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $26.56 | $29.63 | $29.06 | $26.77 | $26.62 | $30.72 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.09) | .05 | .05 | .06 | .12 | .10 |
| Net realized and unrealized gain (loss) | (.75) | (1.61) | 1.85B | 2.41 | 1.26 | (2.44) |
| Total from investment operations | (.84) | (1.56) | 1.90 | 2.47 | 1.38 | (2.34) |
| Distributions from net investment income | – | – | – | (.09) | – | – |
| Distributions from net realized gain | (.23) | (1.52) | (1.33) | (.09) | (1.23) | (1.77) |
| Total distributions | (.23) | (1.52) | (1.33) | (.18) | (1.23) | (1.77) |
| Redemption fees added to paid in capitalA | –C | .01 | –C | –C | –C | .01 |
| Net asset value, end of period | $25.49 | $26.56 | $29.63 | $29.06 | $26.77 | $26.62 |
| Total ReturnD,E,F | (3.18)% | (5.51)% | 6.84%B | 9.27% | 5.51% | (8.16)% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 2.23%I | 2.18% | 2.22% | 2.20% | 2.19% | 2.19% |
| Expenses net of fee waivers, if any | 2.23%I | 2.18% | 2.22% | 2.20% | 2.19% | 2.18% |
| Expenses net of all reductions | 2.23%I | 2.18% | 2.22% | 2.17% | 2.16% | 2.15% |
| Net investment income (loss) | (.76)%I | .19% | .16% | .20% | .46% | .32% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $2,658 | $3,585 | $6,661 | $10,194 | $15,823 | $20,831 |
| Portfolio turnover rateJ | 51%I | 70% | 91% | 95% | 95% | 119% |
A Calculated based on average shares outstanding during the period.
B In 2014, a change to the Indian tax rules invalidated a prior ruling that had exempted the Fund from taxes on realized gains. As a result, the fund recorded a tax liability which resulted in a decrease to realized and unrealized gain (loss) per share of $.17 at period end. Excluding this amount, the total return would have been 7.43%.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Asia Fund Class C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $26.17 | $29.30 | $28.78 | $26.53 | $26.44 | $30.58 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.09) | .07 | .06 | .07 | .13 | .11 |
| Net realized and unrealized gain (loss) | (.72) | (1.59) | 1.82B | 2.39 | 1.25 | (2.41) |
| Total from investment operations | (.81) | (1.52) | 1.88 | 2.46 | 1.38 | (2.30) |
| Distributions from net investment income | (.01) | – | (.03) | (.12) | (.06) | (.04) |
| Distributions from net realized gain | (.23) | (1.62) | (1.33) | (.09) | (1.23) | (1.81) |
| Total distributions | (.24) | (1.62) | (1.36) | (.21) | (1.29) | (1.85) |
| Redemption fees added to paid in capitalA | –C | .01 | –C | –C | –C | .01 |
| Net asset value, end of period | $25.12 | $26.17 | $29.30 | $28.78 | $26.53 | $26.44 |
| Total ReturnD,E,F | (3.12)% | (5.46)% | 6.85%B | 9.33% | 5.57% | (8.10)% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 2.18%I | 2.11% | 2.17% | 2.16% | 2.16% | 2.13% |
| Expenses net of fee waivers, if any | 2.18%I | 2.11% | 2.17% | 2.16% | 2.16% | 2.13% |
| Expenses net of all reductions | 2.18%I | 2.10% | 2.17% | 2.12% | 2.13% | 2.10% |
| Net investment income (loss) | (.71)%I | .26% | .22% | .24% | .49% | .37% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $43,350 | $51,651 | $57,226 | $61,824 | $67,074 | $78,939 |
| Portfolio turnover rateJ | 51%I | 70% | 91% | 95% | 95% | 119% |
A Calculated based on average shares outstanding during the period.
B In 2014, a change to the Indian tax rules invalidated a prior ruling that had exempted the Fund from taxes on realized gains. As a result, the fund recorded a tax liability which resulted in a decrease to realized and unrealized gain (loss) per share of $.17 at period end. Excluding this amount, the total return would have been 7.44%.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Asia Fund Class I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $29.63 | $33.00 | $32.24 | $29.67 | $29.49 | $33.80 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .05 | .41 | .40 | .40 | .44 | .46 |
| Net realized and unrealized gain (loss) | (.82) | (1.81) | 2.04B | 2.68 | 1.39 | (2.69) |
| Total from investment operations | (.77) | (1.40) | 2.44 | 3.08 | 1.83 | (2.23) |
| Distributions from net investment income | (.32) | (.31) | (.35) | (.41) | (.42) | (.29) |
| Distributions from net realized gain | (.23) | (1.67) | (1.33) | (.09) | (1.23) | (1.81) |
| Total distributions | (.55) | (1.98) | (1.68) | (.51)C | (1.65) | (2.09)D |
| Redemption fees added to paid in capitalA | –E | .01 | –E | –E | –E | .01 |
| Net asset value, end of period | $28.31 | $29.63 | $33.00 | $32.24 | $29.67 | $29.49 |
| Total ReturnF,G | (2.63)% | (4.47)% | 7.98%B | 10.47% | 6.64% | (7.13)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.13%J | 1.07% | 1.12% | 1.11% | 1.11% | 1.10% |
| Expenses net of fee waivers, if any | 1.13%J | 1.07% | 1.12% | 1.11% | 1.11% | 1.10% |
| Expenses net of all reductions | 1.13%J | 1.06% | 1.12% | 1.08% | 1.08% | 1.06% |
| Net investment income (loss) | .34%J | 1.30% | 1.26% | 1.29% | 1.54% | 1.41% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $39,139 | $51,569 | $48,693 | $36,310 | $40,026 | $49,888 |
| Portfolio turnover rateK | 51%J | 70% | 91% | 95% | 95% | 119% |
A Calculated based on average shares outstanding during the period.
B In 2014, a change to the Indian tax rules invalidated a prior ruling that had exempted the Fund from taxes on realized gains. As a result, the fund recorded a tax liability which resulted in a decrease to realized and unrealized gain (loss) per share of $.19 at period end. Excluding this amount, the total return would have been 8.57%.
C Total distributions of $.51 per share is comprised of distributions from net investment income of $.413 and distributions from net realized gain of $.092 per share.
D 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.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2016
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 Class I shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a maximum holding period of seven years from the initial date of purchase. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective on or about July 1, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of April 30, 2016, including information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to certain foreign taxes, passive foreign investment companies (PFIC) and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
| Gross unrealized appreciation | $40,693,195 |
| Gross unrealized depreciation | (24,056,952) |
| Net unrealized appreciation (depreciation) on securities | $16,636,243 |
| Tax cost | $213,863,379 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.50% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $60,431,417 and $87,373,839, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .70% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
| Class A | -% | .25% | $140,033 | $– |
| Class T | .25% | .25% | 85,586 | – |
| Class B | .75% | .25% | 14,987 | 11,240 |
| Class C | .75% | .25% | 223,804 | 14,916 |
| | | | $464,410 | $26,156 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $8,257 |
| Class T | 2,581 |
| Class B(a) | 1,039 |
| Class C(a) | 2,011 |
| | $13,888 |
(a) When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| | Amount | % of
Class-Level Average
Net Assets(a) |
| Class A | $149,546 | .27 |
| Class T | 54,398 | .32 |
| Class B | 4,551 | .30 |
| Class C | 56,930 | .25 |
| Class I | 43,161 | .20 |
| | $ 308,586 | |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $140 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $212 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $4,325. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $968 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $903.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| From net investment income | | |
| Class A | $942,866 | $822,279 |
| Class T | 171,419 | 110,077 |
| Class C | 15,517 | – |
| Class I | 536,055 | 466,265 |
| Total | $1,665,857 | $1,398,621 |
| From net realized gain | | |
| Class A | $985,723 | $7,521,830 |
| Class T | 305,631 | 2,362,422 |
| Class B | 29,826 | 322,901 |
| Class C | 446,122 | 3,108,927 |
| Class I | 390,166 | 2,525,980 |
| Total | $2,157,468 | $15,842,060 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| Class A | | | | |
| Shares sold | 136,114 | 687,127 | $3,637,496 | $21,712,763 |
| Reinvestment of distributions | 63,044 | 249,985 | 1,757,041 | 7,544,560 |
| Shares redeemed | (519,254) | (1,101,494) | (13,926,667) | (33,216,845) |
| Net increase (decrease) | (320,096) | (164,382) | $(8,532,130) | $(3,959,522) |
| Class T | | | | |
| Shares sold | 39,660 | 134,384 | $1,031,290 | $4,095,325 |
| Reinvestment of distributions | 17,276 | 82,920 | 469,050 | 2,437,846 |
| Shares redeemed | (137,302) | (296,419) | (3,553,002) | (8,755,323) |
| Net increase (decrease) | (80,366) | (79,115) | $(2,052,662) | $(2,222,152) |
| Class B | | | | |
| Shares sold | 862 | 4,883 | $22,474 | $142,572 |
| Reinvestment of distributions | 1,009 | 10,090 | 26,127 | 283,216 |
| Shares redeemed | (32,557) | (104,780) | (808,389) | (2,930,407) |
| Net increase (decrease) | (30,686) | (89,807) | $(759,788) | $(2,504,619) |
| Class C | | | | |
| Shares sold | 57,428 | 485,886 | $1,427,970 | $14,051,553 |
| Reinvestment of distributions | 15,928 | 98,091 | 406,480 | 2,712,206 |
| Shares redeemed | (321,034) | (563,292) | (7,758,326) | (15,169,240) |
| Net increase (decrease) | (247,678) | 20,685 | $(5,923,876) | $1,594,519 |
| Class I | | | | |
| Shares sold | 181,641 | 1,486,922 | $4,981,851 | $48,941,250 |
| Reinvestment of distributions | 25,883 | 81,888 | 741,553 | 2,540,162 |
| Shares redeemed | (565,765) | (1,303,858) | (15,282,121) | (40,320,585) |
| Net increase (decrease) | (358,241) | 264,952 | $(9,558,717) | $11,160,827 |
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.
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, 2015 to April 30, 2016).
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.
| | Annualized Expense Ratio-A | Beginning
Account Value
November 1, 2015 | Ending
Account Value
April 30, 2016 | Expenses Paid
During Period-B
November 1, 2015
to April 30, 2016 |
| Class A | 1.45% | | | |
| Actual | | $1,000.00 | $972.30 | $7.11 |
| Hypothetical-C | | $1,000.00 | $1,017.65 | $7.27 |
| Class T | 1.75% | | | |
| Actual | | $1,000.00 | $970.80 | $8.58 |
| Hypothetical-C | | $1,000.00 | $1,016.16 | $8.77 |
| Class B | 2.23% | | | |
| Actual | | $1,000.00 | $968.20 | $10.91 |
| Hypothetical-C | | $1,000.00 | $1,013.77 | $11.17 |
| Class C | 2.18% | | | |
| Actual | | $1,000.00 | $968.80 | $10.67 |
| Hypothetical-C | | $1,000.00 | $1,014.02 | $10.92 |
| Class I | 1.13% | | | |
| Actual | | $1,000.00 | $973.70 | $5.55 |
| Hypothetical-C | | $1,000.00 | $1,019.24 | $5.67 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
C 5% return per year before expenses
AEA-SANN-0616
1.703637.118
Fidelity Advisor® Diversified International Fund
Class I
Semi-Annual Report April 30, 2016 |
|
Contents
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. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Five Stocks as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Novo Nordisk A/S Series B (Denmark, Pharmaceuticals) | 2.1 | 1.9 |
| Bayer AG (Germany, Pharmaceuticals) | 1.8 | 1.5 |
| ORIX Corp. (Japan, Diversified Financial Services) | 1.8 | 1.8 |
| Anheuser-Busch InBev SA NV (Belgium, Beverages) | 1.7 | 1.6 |
| Hoya Corp. (Japan, Health Care Equipment & Supplies) | 1.4 | 1.4 |
| | 8.8 | |
Top Five Market Sectors as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Financials | 20.6 | 21.4 |
| Health Care | 17.6 | 17.4 |
| Consumer Discretionary | 14.9 | 16.1 |
| Consumer Staples | 14.5 | 12.3 |
| Information Technology | 13.2 | 12.3 |
Top Five Countries as of April 30, 2016
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| United Kingdom | 15.0 | 18.2 |
| Japan | 14.1 | 14.5 |
| United States of America | 8.5 | 7.3 |
| Germany | 8.5 | 7.6 |
| Switzerland | 4.8 | 4.7 |
Percentages are adjusted for the effect of futures contracts, if applicable.
Asset Allocation (% of fund's net assets)
| As of April 30, 2016 |
| | Stocks and Equity Futures | 97.3% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 2.7% |
| As of October 31, 2015 |
| | Stocks and Equity Futures | 95.2% |
| | Other Investments | 0.1% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 4.7% |
Investments April 30, 2016 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 95.3% | | | |
| | | Shares | Value (000s) |
| Australia - 1.1% | | | |
| Ansell Ltd. (a) | | 258,534 | $3,918 |
| Australia & New Zealand Banking Group Ltd. | | 459,310 | 8,419 |
| CSL Ltd. | | 18,683 | 1,494 |
| Magellan Financial Group Ltd. | | 289,293 | 4,729 |
| Ramsay Health Care Ltd. | | 82,294 | 4,064 |
|
| TOTAL AUSTRALIA | | | 22,624 |
|
| Austria - 0.3% | | | |
| Andritz AG | | 65,400 | 3,663 |
| Zumtobel AG | | 174,600 | 2,273 |
|
| TOTAL AUSTRIA | | | 5,936 |
|
| Bailiwick of Jersey - 2.0% | | | |
| Integrated Diagnostics Holdings PLC | | 164,400 | 764 |
| Sanne Group PLC | | 333,100 | 2,148 |
| Shire PLC | | 229,800 | 14,340 |
| Wolseley PLC | | 226,863 | 12,707 |
| WPP PLC | | 435,324 | 10,170 |
|
| TOTAL BAILIWICK OF JERSEY | | | 40,129 |
|
| Belgium - 2.4% | | | |
| Anheuser-Busch InBev SA NV | | 267,831 | 33,152 |
| KBC Groep NV | | 265,798 | 14,922 |
|
| TOTAL BELGIUM | | | 48,074 |
|
| Canada - 4.2% | | | |
| Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | | 411,200 | 18,025 |
| AutoCanada, Inc. | | 122,300 | 2,001 |
| Canadian Energy Services & Technology Corp. | | 2,653,100 | 8,099 |
| Cenovus Energy, Inc. | | 235,800 | 3,738 |
| CGI Group, Inc. Class A (sub. vtg.) (a) | | 299,500 | 13,682 |
| Constellation Software, Inc. | | 22,400 | 8,754 |
| Fairfax India Holdings Corp. (a) | | 494,000 | 5,483 |
| Imperial Oil Ltd. | | 149,400 | 4,955 |
| Keyera Corp. (b) | | 98,200 | 3,163 |
| PrairieSky Royalty Ltd. | | 81,669 | 1,720 |
| Suncor Energy, Inc. | | 318,900 | 9,361 |
| Tourmaline Oil Corp.(a) | | 199,800 | 4,608 |
|
| TOTAL CANADA | | | 83,589 |
|
| Cayman Islands - 1.0% | | | |
| 58.com, Inc. ADR (a) | | 43,400 | 2,372 |
| Alibaba Group Holding Ltd. sponsored ADR (a) | | 200,800 | 15,450 |
| Lee's Pharmaceutical Holdings Ltd. | | 1,208,500 | 978 |
| Regina Miracle International Holdings Ltd. (a) | | 1,136,558 | 1,725 |
|
| TOTAL CAYMAN ISLANDS | | | 20,525 |
|
| China - 0.7% | | | |
| Inner Mongoli Yili Industries Co. Ltd. | | 497,608 | 1,155 |
| Kweichow Moutai Co. Ltd. | | 175,010 | 6,791 |
| Qingdao Haier Co. Ltd. | | 3,912,122 | 5,034 |
| Weifu High-Technology Co. Ltd. (B Shares) | | 239,500 | 506 |
|
| TOTAL CHINA | | | 13,486 |
|
| Curacao - 0.8% | | | |
| Schlumberger Ltd. | | 196,900 | 15,819 |
| Denmark - 2.9% | | | |
| Genmab A/S (a) | | 86,700 | 12,846 |
| NNIT A/S | | 139,682 | 3,804 |
| Novo Nordisk A/S Series B | | 740,740 | 41,354 |
|
| TOTAL DENMARK | | | 58,004 |
|
| Finland - 0.3% | | | |
| Sampo Oyj (A Shares) | | 113,300 | 4,947 |
| France - 4.3% | | | |
| Accor SA (b) | | 216,069 | 9,571 |
| Air Liquide SA | | 22,860 | 2,593 |
| ALTEN | | 36,200 | 2,238 |
| Amundi SA | | 199,404 | 9,176 |
| AXA SA | | 475,000 | 11,994 |
| Capgemini SA | | 46,900 | 4,378 |
| Danone SA | | 111,747 | 7,829 |
| Publicis Groupe SA | | 56,310 | 4,167 |
| Sanofi SA | | 317,468 | 26,168 |
| VINCI SA | | 55,200 | 4,124 |
| Worldline SA (a)(c) | | 124,824 | 3,496 |
|
| TOTAL FRANCE | | | 85,734 |
|
| Germany - 7.4% | | | |
| adidas AG | | 107,890 | 13,911 |
| Axel Springer Verlag AG | | 42,100 | 2,351 |
| Bayer AG | | 315,252 | 36,369 |
| Brenntag AG | | 75,600 | 4,433 |
| Continental AG | | 44,700 | 9,817 |
| Deutsche Boerse AG | | 44,000 | 3,612 |
| Deutsche Post AG | | 64,027 | 1,881 |
| Fresenius SE & Co. KGaA | | 349,300 | 25,406 |
| KION Group AG | | 108,500 | 5,911 |
| Nexus AG | | 95,900 | 1,680 |
| ProSiebenSat.1 Media AG | | 247,900 | 12,637 |
| Rational AG | | 1,000 | 508 |
| SAP AG | | 256,389 | 20,117 |
| Symrise AG | | 116,900 | 7,745 |
|
| TOTAL GERMANY | | | 146,378 |
|
| Hong Kong - 2.0% | | | |
| AIA Group Ltd. | | 4,732,000 | 28,319 |
| China Resources Beer Holdings Co. Ltd. | | 1,530,000 | 3,362 |
| Hang Seng Bank Ltd. | | 139,800 | 2,535 |
| Techtronic Industries Co. Ltd. | | 1,559,500 | 5,846 |
|
| TOTAL HONG KONG | | | 40,062 |
|
| India - 3.2% | | | |
| Apollo Hospitals Enterprise Ltd. | | 149,447 | 2,952 |
| Axis Bank Ltd. (a) | | 563,244 | 4,006 |
| Bharti Infratel Ltd. | | 1,488,127 | 8,400 |
| Edelweiss Financial Services Ltd. | | 2,655,200 | 2,320 |
| Exide Industries Ltd. (a) | | 1,136,771 | 2,520 |
| HCL Technologies Ltd. | | 325,087 | 3,672 |
| HDFC Bank Ltd. (a) | | 793,748 | 16,134 |
| Housing Development Finance Corp. Ltd. | | 724,211 | 11,867 |
| ITC Ltd. | | 1,552,545 | 7,595 |
| LIC Housing Finance Ltd. (a) | | 274,208 | 1,908 |
| Pidilite Industries Ltd. (a) | | 241,934 | 2,196 |
|
| TOTAL INDIA | | | 63,570 |
|
| Indonesia - 0.5% | | | |
| PT Bank Central Asia Tbk | | 4,553,100 | 4,505 |
| PT Bank Rakyat Indonesia Tbk | | 6,393,400 | 5,018 |
|
| TOTAL INDONESIA | | | 9,523 |
|
| Ireland - 3.2% | | | |
| Allergan PLC (a) | | 62,800 | 13,600 |
| DCC PLC (United Kingdom) | | 71,500 | 6,331 |
| Greencore Group PLC | | 919,621 | 4,848 |
| Horizon Pharma PLC (a) | | 218,400 | 3,357 |
| Kerry Group PLC Class A | | 94,800 | 8,453 |
| Medtronic PLC | | 132,300 | 10,472 |
| Ryanair Holdings PLC sponsored ADR | | 194,360 | 15,733 |
|
| TOTAL IRELAND | | | 62,794 |
|
| Isle of Man - 0.6% | | | |
| Optimal Payments PLC (a) | | 1,284,533 | 7,155 |
| Playtech Ltd. | | 483,525 | 5,684 |
|
| TOTAL ISLE OF MAN | | | 12,839 |
|
| Israel - 2.6% | | | |
| Cellcom Israel Ltd. (Israel) (a) | | 486,900 | 3,654 |
| Check Point Software Technologies Ltd. (a) | | 132,000 | 10,939 |
| Frutarom Industries Ltd. | | 132,000 | 6,765 |
| Partner Communications Co. Ltd. (a) | | 162,104 | 843 |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | | 523,200 | 28,488 |
|
| TOTAL ISRAEL | | | 50,689 |
|
| Italy - 0.7% | | | |
| Intesa Sanpaolo SpA | | 3,417,900 | 9,501 |
| Mediaset SpA | | 769,000 | 3,461 |
|
| TOTAL ITALY | | | 12,962 |
|
| Japan - 14.1% | | | |
| Ain Holdings, Inc. | | 77,700 | 3,775 |
| Astellas Pharma, Inc. | | 1,346,700 | 18,157 |
| Casio Computer Co. Ltd. (b) | | 228,500 | 4,348 |
| Daiichikosho Co. Ltd. | | 74,400 | 3,119 |
| Dentsu, Inc. | | 169,600 | 8,617 |
| Don Quijote Holdings Co. Ltd. | | 177,700 | 6,322 |
| Fast Retailing Co. Ltd. | | 9,200 | 2,422 |
| Glory Ltd. (d) | | 58,800 | 1,926 |
| Hoya Corp. | | 747,400 | 28,621 |
| Japan Exchange Group, Inc. | | 632,300 | 9,417 |
| Japan Tobacco, Inc. | | 474,200 | 19,375 |
| KDDI Corp. | | 607,800 | 17,508 |
| Keyence Corp. | | 37,400 | 22,417 |
| Kubota Corp. | | 71,800 | 1,046 |
| Minebea Mitsumi, Inc. | | 250,000 | 2,048 |
| Misumi Group, Inc. | | 194,300 | 2,683 |
| Mitsubishi UFJ Financial Group, Inc. | | 2,220,800 | 10,249 |
| NGK Spark Plug Co. Ltd. | | 139,300 | 2,778 |
| Nippon Paint Holdings Co. Ltd. | | 42,500 | 1,116 |
| Nitori Holdings Co. Ltd. | | 84,100 | 7,823 |
| NOF Corp. | | 282,000 | 2,220 |
| Olympus Corp. | | 211,100 | 8,224 |
| ORIX Corp. | | 2,507,100 | 35,463 |
| Rakuten, Inc. | | 864,500 | 9,398 |
| Seven & i Holdings Co. Ltd. | | 240,700 | 9,821 |
| SHIMANO, Inc. | | 53,500 | 7,676 |
| Shinsei Bank Ltd. | | 2,310,000 | 3,238 |
| SoftBank Corp. | | 154,300 | 8,297 |
| Suzuki Motor Corp. | | 141,400 | 3,875 |
| Tsuruha Holdings, Inc. | | 141,100 | 13,534 |
| Welcia Holdings Co. Ltd. | | 58,200 | 3,074 |
|
| TOTAL JAPAN | | | 278,587 |
|
| Korea (South) - 0.2% | | | |
| Orion Corp. | | 5,836 | 4,737 |
| Luxembourg - 0.7% | | | |
| Eurofins Scientific SA | | 36,500 | 13,543 |
| Netherlands - 4.0% | | | |
| AerCap Holdings NV (a) | | 162,700 | 6,510 |
| Altice NV: | | | |
| Class A (a) | | 837,674 | 12,709 |
| Class B (a) | | 282,992 | 4,324 |
| Gree Electric Appliances, Inc. of Zhuhai ELS (BNP Paribas Warrants Program) (A Shares)warrants 11/24/16 (a)(c) | | 144,800 | 430 |
| IMCD Group BV | | 135,500 | 5,471 |
| ING Groep NV (Certificaten Van Aandelen) | | 862,600 | 10,564 |
| NXP Semiconductors NV (a) | | 85,900 | 7,326 |
| RELX NV | | 691,942 | 11,611 |
| Unilever NV (Certificaten Van Aandelen) (Bearer) | | 478,600 | 21,025 |
|
| TOTAL NETHERLANDS | | | 79,970 |
|
| New Zealand - 0.1% | | | |
| Ryman Healthcare Group Ltd. | | 252,900 | 1,577 |
| Norway - 0.4% | | | |
| Statoil ASA | | 479,000 | 8,431 |
| Philippines - 0.2% | | | |
| Alliance Global Group, Inc. | | 12,852,154 | 3,962 |
| Singapore - 0.6% | | | |
| Broadcom Ltd. | | 39,500 | 5,757 |
| United Overseas Bank Ltd. | | 414,700 | 5,736 |
|
| TOTAL SINGAPORE | | | 11,493 |
|
| South Africa - 1.1% | | | |
| EOH Holdings Ltd. | | 427,200 | 4,158 |
| Naspers Ltd. Class N (d) | | 134,900 | 18,510 |
|
| TOTAL SOUTH AFRICA | | | 22,668 |
|
| Spain - 2.0% | | | |
| Amadeus IT Holding SA Class A | | 338,700 | 15,412 |
| Hispania Activos Inmobiliarios SA (a) | | 207,200 | 3,037 |
| Inditex SA | | 633,569 | 20,339 |
| Telepizza Group SAU | | 207,200 | 1,459 |
|
| TOTAL SPAIN | | | 40,247 |
|
| Sweden - 2.5% | | | |
| ASSA ABLOY AB (B Shares) | | 424,800 | 8,908 |
| Coor Service Management Holding AB | | 445,200 | 2,107 |
| HEXPOL AB (B Shares) (b) | | 146,900 | 1,518 |
| Nordea Bank AB | | 1,247,400 | 12,108 |
| Svenska Cellulosa AB (SCA) (B Shares) | | 571,900 | 18,011 |
| Svenska Handelsbanken AB (A Shares) (b) | | 560,400 | 7,476 |
|
| TOTAL SWEDEN | | | 50,128 |
|
| Switzerland - 4.8% | | | |
| Actelion Ltd. | | 58,435 | 9,442 |
| Compagnie Financiere Richemont SA Series A | | 51,033 | 3,403 |
| Credit Suisse Group AG | | 536,264 | 8,161 |
| GAM Holding Ltd. | | 84,407 | 1,100 |
| Julius Baer Group Ltd. | | 72,090 | 3,089 |
| Partners Group Holding AG | | 15,240 | 6,275 |
| Roche Holding AG (participation certificate) | | 59,287 | 15,000 |
| Sika AG | | 2,320 | 9,874 |
| Syngenta AG (Switzerland) | | 63,418 | 25,386 |
| UBS Group AG | | 784,733 | 13,579 |
|
| TOTAL SWITZERLAND | | | 95,309 |
|
| Taiwan - 1.1% | | | |
| Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | | 904,700 | 21,342 |
| Thailand - 0.2% | | | |
| Kasikornbank PCL (For. Reg.) | | 817,800 | 3,911 |
| United Kingdom - 15.0% | | | |
| AA PLC | | 502,320 | 2,045 |
| Associated British Foods PLC | | 157,700 | 7,060 |
| B&M European Value Retail S.A. | | 2,403,811 | 9,743 |
| British American Tobacco PLC sponsored ADR | | 75,500 | 9,222 |
| BT Group PLC | | 2,003,100 | 12,984 |
| Bunzl PLC | | 175,700 | 5,235 |
| Capita Group PLC | | 266,100 | 3,892 |
| Compass Group PLC | | 572,700 | 10,199 |
| Dignity PLC | | 17,100 | 610 |
| Diploma PLC | | 401,600 | 4,292 |
| Essentra PLC | | 1,189,500 | 14,113 |
| Halma PLC | | 119,100 | 1,552 |
| Howden Joinery Group PLC | | 548,200 | 3,957 |
| IMI PLC | | 164,400 | 2,246 |
| Imperial Tobacco Group PLC | | 255,232 | 13,867 |
| Indivior PLC | | 864,100 | 2,030 |
| ITV PLC | | 3,882,500 | 12,775 |
| Liberty Global PLC: | | | |
| Class A (a) | | 143,600 | 5,418 |
| Class C (a) | | 61,400 | 2,247 |
| Lloyds Banking Group PLC | | 27,782,700 | 27,269 |
| London Stock Exchange Group PLC | | 233,000 | 9,236 |
| Micro Focus International PLC | | 538,200 | 12,024 |
| Melrose Industries PLC | | 359,842 | 1,963 |
| Next PLC | | 163,200 | 12,126 |
| Poundland Group PLC | | 1,394,767 | 3,505 |
| Prudential PLC | | 1,189,532 | 23,481 |
| Reckitt Benckiser Group PLC | | 186,513 | 18,170 |
| Rio Tinto PLC | | 59,500 | 1,996 |
| Rolls-Royce Group PLC | | 735,400 | 7,194 |
| SABMiller PLC | | 183,500 | 11,221 |
| Schroders PLC | | 132,100 | 4,852 |
| Softcat PLC | | 490,700 | 2,287 |
| Sophos Group PLC | | 532,566 | 1,598 |
| Spectris PLC | | 150,900 | 4,015 |
| St. James's Place Capital PLC | | 1,188,700 | 15,059 |
| The Restaurant Group PLC | | 571,100 | 2,296 |
| Virgin Money Holdings Uk PLC | | 989,500 | 5,279 |
| Whitbread PLC | | 167,233 | 9,461 |
|
| TOTAL UNITED KINGDOM | | | 296,519 |
|
| United States of America - 8.1% | | | |
| Alphabet, Inc.: | | | |
| Class A | | 10,195 | 7,217 |
| Class C | | 19,149 | 13,270 |
| Amgen, Inc. | | 65,300 | 10,337 |
| Baxalta, Inc. | | 122,500 | 5,139 |
| Celgene Corp. (a) | | 66,400 | 6,866 |
| Coach, Inc. | | 48,700 | 1,961 |
| Cognizant Technology Solutions Corp. Class A (a) | | 98,700 | 5,761 |
| Coty, Inc. Class A (b) | | 306,400 | 9,315 |
| Fidelity National Information Services, Inc. | | 47,800 | 3,145 |
| Las Vegas Sands Corp. | | 179,800 | 8,118 |
| MasterCard, Inc. Class A | | 148,600 | 14,413 |
| McGraw Hill Financial, Inc. | | 206,500 | 22,065 |
| Mead Johnson Nutrition Co. Class A | | 23,500 | 2,048 |
| Molson Coors Brewing Co. Class B | | 59,900 | 5,728 |
| MSCI, Inc. Class A | | 27,500 | 2,088 |
| NJOY, Inc. (a)(e) | | 725,849 | 93 |
| Noble Energy, Inc. | | 88,700 | 3,203 |
| Oceaneering International, Inc. | | 114,100 | 4,182 |
| Phillips 66 Co. | | 51,100 | 4,196 |
| Qualcomm, Inc. | | 159,600 | 8,063 |
| Spectrum Brands Holdings, Inc. | | 23,700 | 2,692 |
| Verisk Analytics, Inc. (a) | | 25,800 | 2,002 |
| Visa, Inc. Class A | | 198,900 | 15,363 |
| Western Digital Corp. | | 64,700 | 2,644 |
|
| TOTAL UNITED STATES OF AMERICA | | | 159,909 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $1,608,687) | | | 1,890,017 |
|
| Nonconvertible Preferred Stocks - 1.6% | | | |
| Brazil - 0.5% | | | |
| Itau Unibanco Holding SA | | 1,027,300 | 9,818 |
| Germany - 1.1% | | | |
| Henkel AG & Co. KGaA | | 178,800 | 20,408 |
| Jungheinrich AG | | 12,800 | 1,207 |
|
| TOTAL GERMANY | | | 21,615 |
|
| United Kingdom - 0.0% | | | |
| Rolls-Royce Group PLC | | 52,213,400 | 76 |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | | | |
| (Cost $25,429) | | | 31,509 |
| | | Principal Amount (000s) | Value (000s) |
|
| Government Obligations - 0.0% | | | |
| United States of America - 0.0% | | | |
| U.S. Treasury Bills, yield at date of purchase 0.25% to 0.33% 5/26/16 to 7/28/16(f) | | | |
| (Cost $520) | | $520 | 520 |
| | | Shares | Value (000s) |
|
| Money Market Funds - 3.9% | | | |
| Fidelity Cash Central Fund, 0.38% (g) | | 51,741,019 | 51,741 |
| Fidelity Securities Lending Cash Central Fund, 0.42% (g)(h) | | 24,789,142 | 24,789 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $76,530) | | | 76,530 |
| TOTAL INVESTMENT PORTFOLIO - 100.8% | | | |
| (Cost $1,711,166) | | | 1,998,576 |
| NET OTHER ASSETS (LIABILITIES) - (0.8)% | | | (16,604) |
| NET ASSETS - 100% | | | $1,981,972 |
| Futures Contracts | | | |
| | Expiration Date | Underlying Face Amount at Value (000s) | Unrealized Appreciation/(Depreciation) (000s) |
| Purchased | | | |
| Equity Index Contracts | | | |
| 97 CME Nikkei 225 Index Contracts (United States) | June 2016 | 7,724 | $(527) |
The face value of futures purchased as a percentage of Net Assets is 0.4%
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $3,926,000 or 0.2% of net assets.
(d) A portion of the security sold on a delayed delivery basis.
(e) 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 $93,000 or 0.0% of net assets.
(f) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $520,000.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost (000s) |
| NJOY, Inc. | 6/7/13 - 2/14/14 | $808 |
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 | $120 |
| Fidelity Securities Lending Cash Central Fund | 143 |
| Total | $263 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2016, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | | | | |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Consumer Discretionary | $297,004 | $205,023 | $91,888 | $93 |
| Consumer Staples | 284,293 | 205,353 | 78,940 | -- |
| Energy | 71,475 | 63,044 | 8,431 | -- |
| Financials | 410,280 | 205,105 | 205,175 | -- |
| Health Care | 350,990 | 198,148 | 152,842 | -- |
| Industrials | 120,332 | 98,041 | 22,291 | -- |
| Information Technology | 259,944 | 217,410 | 42,534 | -- |
| Materials | 75,522 | 67,597 | 7,925 | -- |
| Telecommunication Services | 51,686 | 12,897 | 38,789 | -- |
| Government Obligations | 520 | -- | 520 | -- |
| Money Market Funds | 76,530 | 76,530 | -- | -- |
| Total Investments in Securities: | $1,998,576 | $1,349,148 | $649,335 | $93 |
| Derivative Instruments: | | | | |
| Liabilities | | | | |
| Futures Contracts | $(527) | $(527) | $-- | $-- |
| Total Liabilities | $(527) | $(527) | $-- | $-- |
| Total Derivative Instruments: | $(527) | $(527) | $-- | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2016. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
| Transfers | Total (000s) |
| Level 1 to Level 2 | $26,947 |
| Level 2 to Level 1 | $200,408 |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of April 30, 2016. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
| Primary Risk Exposure / Derivative Type | Value |
| (Amounts in thousands) | Asset | Liability |
| Equity Risk | | |
| Futures Contracts(a) | $0 | $(527) |
| Total Equity Risk | 0 | (527) |
| Total Value of Derivatives | $0 | $(527) |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin for derivative instruments, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | | April 30, 2016 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $23,407) — See accompanying schedule:
Unaffiliated issuers (cost $1,634,636) | $1,922,046 | |
| Fidelity Central Funds (cost $76,530) | 76,530 | |
| Total Investments (cost $1,711,166) | | $1,998,576 |
| Foreign currency held at value (cost $293) | | 293 |
| Receivable for investments sold | | |
| Regular delivery | | 5,501 |
| Delayed delivery | | 508 |
| Receivable for fund shares sold | | 1,748 |
| Dividends receivable | | 10,340 |
| Distributions receivable from Fidelity Central Funds | | 78 |
| Prepaid expenses | | 1 |
| Other receivables | | 198 |
| Total assets | | 2,017,243 |
| Liabilities | | |
| Payable for investments purchased | $5,254 | |
| Payable for fund shares redeemed | 2,844 | |
| Accrued management fee | 1,126 | |
| Distribution and service plan fees payable | 431 | |
| Payable for daily variation margin for derivative instruments | 199 | |
| Other affiliated payables | 424 | |
| Other payables and accrued expenses | 204 | |
| Collateral on securities loaned, at value | 24,789 | |
| Total liabilities | | 35,271 |
| Net Assets | | $1,981,972 |
| Net Assets consist of: | | |
| Paid in capital | | $4,321,905 |
| Undistributed net investment income | | 9,333 |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (2,636,280) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 287,014 |
| Net Assets | | $1,981,972 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($616,707 ÷ 32,029.5 shares) | | $19.25 |
| Maximum offering price per share (100/94.25 of $19.25) | | $20.42 |
| Class T: | | |
| Net Asset Value and redemption price per share ($246,458 ÷ 12,895.7 shares) | | $19.11 |
| Maximum offering price per share (100/96.50 of $19.11) | | $19.80 |
| Class B: | | |
| Net Asset Value and offering price per share ($7,411 ÷ 399.8 shares)(a) | | $18.54 |
| Class C: | | |
| Net Asset Value and offering price per share ($228,358 ÷ 12,393.1 shares)(a) | | $18.43 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($794,709 ÷ 40,606.7 shares) | | $19.57 |
| Class Z: | | |
| Net Asset Value, offering price and redemption price per share ($88,329 ÷ 4,515.7 shares) | | $19.56 |
(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.
Statement of Operations
| Amounts in thousands | | Six months ended April 30, 2016 (Unaudited) |
| Investment Income | | |
| Dividends | | $23,035 |
| Interest | | 4 |
| Income from Fidelity Central Funds | | 263 |
| Income before foreign taxes withheld | | 23,302 |
| Less foreign taxes withheld | | (1,688) |
| Total income | | 21,614 |
| Expenses | | |
| Management fee | $6,583 | |
| Transfer agent fees | 2,108 | |
| Distribution and service plan fees | 2,613 | |
| Accounting and security lending fees | 432 | |
| Custodian fees and expenses | 116 | |
| Independent trustees' compensation | 4 | |
| Registration fees | 106 | |
| Audit | 60 | |
| Legal | 6 | |
| Miscellaneous | 5 | |
| Total expenses before reductions | 12,033 | |
| Expense reductions | (21) | 12,012 |
| Net investment income (loss) | | 9,602 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (12,719) | |
| Foreign currency transactions | 176 | |
| Futures contracts | (468) | |
| Total net realized gain (loss) | | (13,011) |
Change in net unrealized appreciation (depreciation) on:
Investment securities (net of increase in deferred foreign taxes of $21) | (66,550) | |
| Assets and liabilities in foreign currencies | 113 | |
| Futures contracts | (966) | |
| Total change in net unrealized appreciation (depreciation) | | (67,403) |
| Net gain (loss) | | (80,414) |
| Net increase (decrease) in net assets resulting from operations | | $(70,812) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Six months ended April 30, 2016 (Unaudited) | Year ended October 31, 2015 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $9,602 | $14,320 |
| Net realized gain (loss) | (13,011) | 39,040 |
| Change in net unrealized appreciation (depreciation) | (67,403) | 18,118 |
| Net increase (decrease) in net assets resulting from operations | (70,812) | 71,478 |
| Distributions to shareholders from net investment income | (12,902) | (18,738) |
| Distributions to shareholders from net realized gain | – | (2,141) |
| Total distributions | (12,902) | (20,879) |
| Share transactions - net increase (decrease) | 40,304 | 63,265 |
| Redemption fees | 14 | 27 |
| Total increase (decrease) in net assets | (43,396) | 113,891 |
| Net Assets | | |
| Beginning of period | 2,025,368 | 1,911,477 |
| End of period (including undistributed net investment income of $9,333 and undistributed net investment income of $12,633, respectively) | $1,981,972 | $2,025,368 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Diversified International Fund Class A
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.10 | $19.56 | $19.47 | $15.63 | $14.61 | $15.63 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .09 | .15 | .27B | .19 | .18 | .22C |
| Net realized and unrealized gain (loss) | (.81) | .61 | .17 | 3.92 | 1.03 | (1.01) |
| Total from investment operations | (.72) | .76 | .44 | 4.11 | 1.21 | (.79) |
| Distributions from net investment income | (.13) | (.20) | (.18) | (.21) | (.19) | (.20) |
| Distributions from net realized gain | – | (.02) | (.17) | (.06) | – | (.03) |
| Total distributions | (.13) | (.22) | (.35) | (.27) | (.19) | (.23) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – | – |
| Net asset value, end of period | $19.25 | $20.10 | $19.56 | $19.47 | $15.63 | $14.61 |
| Total ReturnE,F,G | (3.62)% | 3.93% | 2.28% | 26.69% | 8.47% | (5.15)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.23%J | 1.22% | 1.26% | 1.31% | 1.32% | 1.31% |
| Expenses net of fee waivers, if any | 1.23%J | 1.22% | 1.26% | 1.30% | 1.32% | 1.31% |
| Expenses net of all reductions | 1.23%J | 1.21% | 1.26% | 1.28% | 1.31% | 1.29% |
| Net investment income (loss) | .98%J | .75% | 1.34%B | 1.08% | 1.20% | 1.38%C |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $617 | $662 | $693 | $756 | $762 | $916 |
| Portfolio turnover rateK | 24%J | 34% | 40% | 50% | 34% | 48% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .85%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .98%.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Diversified International Fund Class T
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $19.92 | $19.38 | $19.30 | $15.49 | $14.46 | $15.47 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .07 | .10 | .21B | .14 | .14 | .18C |
| Net realized and unrealized gain (loss) | (.81) | .61 | .18 | 3.89 | 1.03 | (.99) |
| Total from investment operations | (.74) | .71 | .39 | 4.03 | 1.17 | (.81) |
| Distributions from net investment income | (.07) | (.15) | (.14) | (.16) | (.14) | (.16) |
| Distributions from net realized gain | – | (.02) | (.17) | (.06) | – | (.03) |
| Total distributions | (.07) | (.17) | (.31) | (.22) | (.14) | (.20)D |
| Redemption fees added to paid in capitalA,E | – | – | – | – | – | – |
| Net asset value, end of period | $19.11 | $19.92 | $19.38 | $19.30 | $15.49 | $14.46 |
| Total ReturnF,G,H | (3.73)% | 3.67% | 2.04% | 26.37% | 8.17% | (5.35)% |
| Ratios to Average Net AssetsI,J | | | | | | |
| Expenses before reductions | 1.49%K | 1.48% | 1.51% | 1.55% | 1.58% | 1.55% |
| Expenses net of fee waivers, if any | 1.49%K | 1.48% | 1.51% | 1.55% | 1.58% | 1.55% |
| Expenses net of all reductions | 1.49%K | 1.47% | 1.51% | 1.53% | 1.57% | 1.53% |
| Net investment income (loss) | .72%K | .49% | 1.09%B | .83% | .94% | 1.14%C |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $246 | $271 | $284 | $319 | $304 | $404 |
| Portfolio turnover rateL | 24%K | 34% | 40% | 50% | 34% | 48% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .60%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .74%.
D 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.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the sales charges.
I 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.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Diversified International Fund Class B
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $19.31 | $18.75 | $18.65 | $14.95 | $13.91 | $14.91 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .01 | (.01) | .10B | .05 | .06 | .09C |
| Net realized and unrealized gain (loss) | (.78) | .59 | .17 | 3.77 | 1.00 | (.96) |
| Total from investment operations | (.77) | .58 | .27 | 3.82 | 1.06 | (.87) |
| Distributions from net investment income | – | – | – | (.06) | (.02) | (.10) |
| Distributions from net realized gain | – | (.02) | (.17) | (.06) | – | (.03) |
| Total distributions | – | (.02) | (.17) | (.12) | (.02) | (.13) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – | – |
| Net asset value, end of period | $18.54 | $19.31 | $18.75 | $18.65 | $14.95 | $13.91 |
| Total ReturnE,F,G | (3.99)% | 3.11% | 1.45% | 25.72% | 7.64% | (5.89)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 2.05%J | 2.05% | 2.07% | 2.08% | 2.08% | 2.08% |
| Expenses net of fee waivers, if any | 2.05%J | 2.05% | 2.07% | 2.08% | 2.08% | 2.08% |
| Expenses net of all reductions | 2.05%J | 2.04% | 2.07% | 2.06% | 2.07% | 2.06% |
| Net investment income (loss) | .16%J | (.08)% | .53%B | .30% | .44% | .61%C |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $7 | $11 | $19 | $36 | $59 | $94 |
| Portfolio turnover rateK | 24%J | 34% | 40% | 50% | 34% | 48% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .04%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .21%.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Diversified International Fund Class C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $19.19 | $18.68 | $18.63 | $14.97 | $13.95 | $14.95 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .02 | – | .11B | .06 | .06 | .10C |
| Net realized and unrealized gain (loss) | (.78) | .59 | .18 | 3.75 | 1.01 | (.96) |
| Total from investment operations | (.76) | .59 | .29 | 3.81 | 1.07 | (.86) |
| Distributions from net investment income | – | (.06) | (.07) | (.09) | (.05) | (.11) |
| Distributions from net realized gain | – | (.02) | (.17) | (.06) | – | (.03) |
| Total distributions | – | (.08) | (.24) | (.15) | (.05) | (.14) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – | – |
| Net asset value, end of period | $18.43 | $19.19 | $18.68 | $18.63 | $14.97 | $13.95 |
| Total ReturnE,F,G | (3.96)% | 3.15% | 1.58% | 25.71% | 7.71% | (5.83)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.98%J | 1.97% | 2.00% | 2.04% | 2.06% | 2.05% |
| Expenses net of fee waivers, if any | 1.98%J | 1.97% | 2.00% | 2.04% | 2.06% | 2.05% |
| Expenses net of all reductions | 1.98%J | 1.96% | 2.00% | 2.01% | 2.05% | 2.03% |
| Net investment income (loss) | .23%J | - %K | .60%B | .35% | .46% | .64%C |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $228 | $251 | $243 | $264 | $246 | $302 |
| Portfolio turnover rateL | 24%J | 34% | 40% | 50% | 34% | 48% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .11%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .24%.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H 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.
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 Annualized
K Amount represents less than .005%.
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Diversified International Fund Class I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.46 | $19.91 | $19.80 | $15.90 | $14.87 | $15.90 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .12 | .21 | .33B | .24 | .23 | .28C |
| Net realized and unrealized gain (loss) | (.82) | .63 | .18 | 3.98 | 1.05 | (1.03) |
| Total from investment operations | (.70) | .84 | .51 | 4.22 | 1.28 | (.75) |
| Distributions from net investment income | (.19) | (.26) | (.23) | (.26) | (.25) | (.25) |
| Distributions from net realized gain | – | (.02) | (.17) | (.06) | – | (.03) |
| Total distributions | (.19) | (.29)D | (.40) | (.32) | (.25) | (.28) |
| Redemption fees added to paid in capitalA,E | – | – | – | – | – | – |
| Net asset value, end of period | $19.57 | $20.46 | $19.91 | $19.80 | $15.90 | $14.87 |
| Total ReturnF,G | (3.48)% | 4.24% | 2.60% | 27.03% | 8.83% | (4.85)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | .95%J | .94% | .97% | .99% | 1.00% | .99% |
| Expenses net of fee waivers, if any | .95%J | .94% | .97% | .99% | 1.00% | .99% |
| Expenses net of all reductions | .95%J | .94% | .97% | .97% | .99% | .97% |
| Net investment income (loss) | 1.26%J | 1.03% | 1.63%B | 1.39% | 1.52% | 1.70%C |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $795 | $747 | $648 | $636 | $546 | $723 |
| Portfolio turnover rateK | 24%J | 34% | 40% | 50% | 34% | 48% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.14%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.30%.
D Total distributions of $.29 per share is comprised of distributions from net investment income of $.263 and distributions from net realized gain of $.022 per share.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Diversified International Fund Class Z
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | |
| | 2016 | 2015 | 2014 | 2013 A |
| Selected Per–Share Data | | | | |
| Net asset value, beginning of period | $20.46 | $19.93 | $19.81 | $18.54 |
| Income from Investment Operations | | | | |
| Net investment income (loss)B | .14 | .24 | .36C | .03 |
| Net realized and unrealized gain (loss) | (.82) | .61 | .19 | 1.24 |
| Total from investment operations | (.68) | .85 | .55 | 1.27 |
| Distributions from net investment income | (.22) | (.30) | (.26) | – |
| Distributions from net realized gain | – | (.02) | (.17) | – |
| Total distributions | (.22) | (.32) | (.43) | – |
| Redemption fees added to paid in capitalB | –D | –D | –D | – |
| Net asset value, end of period | $19.56 | $20.46 | $19.93 | $19.81 |
| Total ReturnE,F | (3.38)% | 4.34% | 2.81% | 6.85% |
| Ratios to Average Net AssetsG,H | | | | |
| Expenses before reductions | .79%I | .79% | .81% | .83%I |
| Expenses net of fee waivers, if any | .79%I | .79% | .81% | .83%I |
| Expenses net of all reductions | .79%I | .78% | .81% | .80%I |
| Net investment income (loss) | 1.42%I | 1.18% | 1.79%C | .77%I |
| Supplemental Data | | | | |
| Net assets, end of period (000 omitted) | $88,329 | $82,925 | $24,050 | $107 |
| Portfolio turnover rateJ | 24%I | 34% | 40% | 50% |
A For the period August 13, 2013 (commencement of sale of shares) to October 31, 2013.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.30%.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2016
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor Diversified International Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Class I and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a maximum holding period of seven years from the initial date of purchase.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective on or about July 1, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the other Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of April 30, 2016, including information on transfers between Levels 1 and 2 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, futures transactions, passive foreign investment companies (PFIC), market discount, 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 | $396,652 |
| Gross unrealized depreciation | (127,366) |
| Net unrealized appreciation (depreciation) on securities | $269,286 |
| Tax cost | $1,729,290 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2017 | $(2,606,019) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
| Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment.
|
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
During the period the Fund recognized net realized gain (loss) of $(468) and a change in net unrealized appreciation (depreciation) of $(966) related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $316,532 and $227,752, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .424% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .67% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
| Class A | -% | .25% | $778 | $– |
| Class T | .25% | .25% | 626 | – |
| Class B | .75% | .25% | 45 | 34 |
| Class C | .75% | .25% | 1,164 | 70 |
| | | | $2,613 | $104 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $43 |
| Class T | 11 |
| Class B(a) | 1 |
| Class C(a) | 6 |
| | $61 |
(a) When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| | Amount | % of
Class-Level Average
Net Assets(a) |
| Class A | $728 | .23 |
| Class T | 307 | .24 |
| Class B | 14 | .30 |
| Class C | 275 | .24 |
| Class I | 764 | .20 |
| Class Z | 20 | .05 |
| | $2,108 | |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $143. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $14 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $7.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| From net investment income | | |
| Class A | $4,188 | $7,030 |
| Class T | 941 | 2,091 |
| Class C | – | 706 |
| Class I | 6,836 | 8,555 |
| Class Z | 937 | 356 |
| Total | $12,902 | $18,738 |
| From net realized gain | | |
| Class A | $– | $727 |
| Class T | – | 317 |
| Class B | – | 21 |
| Class C | – | 280 |
| Class I | – | 770 |
| Class Z | – | 26 |
| Total | $– | $2,141 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| Class A | | | | |
| Shares sold | 2,734 | 6,331 | $52,492 | $128,828 |
| Reinvestment of distributions | 200 | 378 | 3,990 | 7,410 |
| Shares redeemed | (3,816) | (9,229) | (72,623) | (183,333) |
| Net increase (decrease) | (882) | (2,520) | $(16,141) | $(47,095) |
| Class T | | | | |
| Shares sold | 524 | 1,574 | $9,870 | $31,817 |
| Reinvestment of distributions | 46 | 120 | 909 | 2,332 |
| Shares redeemed | (1,301) | (2,697) | (24,515) | (53,711) |
| Net increase (decrease) | (731) | (1,003) | $(13,736) | $(19,562) |
| Class B | | | | |
| Shares sold | 3 | 20 | $56 | $400 |
| Reinvestment of distributions | – | 1 | – | 19 |
| Shares redeemed | (178) | (467) | (3,252) | (9,077) |
| Net increase (decrease) | (175) | (446) | $(3,196) | $(8,658) |
| Class C | | | | |
| Shares sold | 591 | 2,044 | $10,857 | $40,003 |
| Reinvestment of distributions | – | 44 | – | 826 |
| Shares redeemed | (1,284) | (2,036) | (23,333) | (39,156) |
| Net increase (decrease) | (693) | 52 | $(12,476) | $1,673 |
| Class I | | | | |
| Shares sold | 10,468 | 13,465 | $200,204 | $273,323 |
| Reinvestment of distributions | 284 | 415 | 5,760 | 8,253 |
| Shares redeemed | (6,665) | (9,912) | (129,454) | (200,987) |
| Net increase (decrease) | 4,087 | 3,968 | $76,510 | $80,589 |
| Class Z | | | | |
| Shares sold | 700 | 3,275 | $13,837 | $65,174 |
| Reinvestment of distributions | 46 | 19 | 937 | 382 |
| Shares redeemed | (282) | (449) | (5,431) | (9,238) |
| Net increase (decrease) | 464 | 2,845 | $9,343 | $56,318 |
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.
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, 2015 to April 30, 2016).
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.
| | Annualized Expense Ratio-A | Beginning
Account Value
November 1, 2015 | Ending
Account Value
April 30, 2016 | Expenses Paid
During Period-B
November 1, 2015
to April 30, 2016 |
| Class A | 1.23% | | | |
| Actual | | $1,000.00 | $963.80 | $6.01 |
| Hypothetical-C | | $1,000.00 | $1,018.75 | $6.17 |
| Class T | 1.49% | | | |
| Actual | | $1,000.00 | $962.70 | $7.27 |
| Hypothetical-C | | $1,000.00 | $1,017.45 | $7.47 |
| Class B | 2.05% | | | |
| Actual | | $1,000.00 | $960.10 | $9.99 |
| Hypothetical-C | | $1,000.00 | $1,014.67 | $10.27 |
| Class C | 1.98% | | | |
| Actual | | $1,000.00 | $960.40 | $9.65 |
| Hypothetical-C | | $1,000.00 | $1,015.02 | $9.92 |
| Class I | .95% | | | |
| Actual | | $1,000.00 | $965.20 | $4.64 |
| Hypothetical-C | | $1,000.00 | $1,020.14 | $4.77 |
| Class Z | .79% | | | |
| Actual | | $1,000.00 | $966.20 | $3.86 |
| Hypothetical-C | | $1,000.00 | $1,020.93 | $3.97 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
C 5% return per year before expenses
ADIFI-SANN-0616
1.720069.117
Fidelity Advisor® Overseas Fund
Class A, Class T, Class B and Class C
Semi-Annual Report April 30, 2016 |
|
Contents
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. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Five Stocks as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Nestle SA (Switzerland, Food Products) | 2.6 | 2.4 |
| Novo Nordisk A/S Series B (Denmark, Pharmaceuticals) | 2.1 | 1.9 |
| Sanofi SA (France, Pharmaceuticals) | 1.7 | 2.0 |
| Howden Joinery Group PLC (United Kingdom, Specialty Retail) | 1.7 | 1.8 |
| NEXT Co. Ltd. (Japan, Media) | 1.7 | 1.0 |
| | 9.8 | |
Top Five Market Sectors as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Consumer Discretionary | 27.1 | 29.7 |
| Information Technology | 17.2 | 12.9 |
| Financials | 14.2 | 16.5 |
| Health Care | 12.9 | 13.4 |
| Consumer Staples | 10.4 | 10.4 |
Top Five Countries as of April 30, 2016
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| Japan | 20.8 | 17.9 |
| United Kingdom | 18.4 | 22.9 |
| United States of America | 10.8 | 9.5 |
| France | 9.5 | 9.2 |
| Germany | 6.5 | 4.2 |
Percentages are adjusted for the effect of futures contracts, if applicable.
Asset Allocation (% of fund's net assets)
| As of April 30, 2016 |
| | Stocks | 99.3% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 0.7% |
| As of October 31, 2015 |
| | Stocks | 99.4% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 0.6% |
Investments April 30, 2016 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 98.3% | | | |
| | | Shares | Value (000s) |
| Australia - 1.7% | | | |
| AMP Ltd. | | 186,173 | $832 |
| BHP Billiton Ltd. | | 146,394 | 2,286 |
| Carsales.com Ltd. | | 597,678 | 5,344 |
| McMillan Shakespeare Ltd. | | 285,153 | 2,663 |
|
| TOTAL AUSTRALIA | | | 11,125 |
|
| Austria - 0.9% | | | |
| Wienerberger AG | | 304,300 | 6,012 |
| Bailiwick of Jersey - 2.3% | | | |
| Integrated Diagnostics Holdings PLC | | 95,400 | 444 |
| Shire PLC | | 66,000 | 4,119 |
| Wolseley PLC | | 196,467 | 11,005 |
|
| TOTAL BAILIWICK OF JERSEY | | | 15,568 |
|
| Belgium - 0.8% | | | |
| Ageas | | 35,290 | 1,384 |
| KBC Groep NV | | 36,411 | 2,044 |
| UCB SA | | 21,700 | 1,624 |
|
| TOTAL BELGIUM | | | 5,052 |
|
| Bermuda - 0.4% | | | |
| Oriental Watch Holdings Ltd. | | 2,992,000 | 362 |
| Signet Jewelers Ltd. | | 18,600 | 2,019 |
|
| TOTAL BERMUDA | | | 2,381 |
|
| Canada - 0.5% | | | |
| Entertainment One Ltd. | | 1,174,777 | 3,176 |
| Cayman Islands - 3.2% | | | |
| 58.com, Inc. ADR (a) | | 67,600 | 3,694 |
| Alibaba Group Holding Ltd. sponsored ADR (a) | | 79,400 | 6,109 |
| Autohome, Inc. ADR Class A (a) | | 37,000 | 1,094 |
| Bitauto Holdings Ltd. ADR (a) | | 18,300 | 457 |
| Fu Shou Yuan International Group Ltd. | | 1,020,000 | 716 |
| Goodbaby International Holdings Ltd. (a) | | 973,000 | 545 |
| New Oriental Education & Technology Group, Inc. sponsored ADR | | 43,900 | 1,719 |
| Tencent Holdings Ltd. | | 344,800 | 7,016 |
|
| TOTAL CAYMAN ISLANDS | | | 21,350 |
|
| China - 0.3% | | | |
| TravelSky Technology Ltd. (H Shares) | | 925,000 | 1,719 |
| Denmark - 2.6% | | | |
| Danske Bank A/S | | 74,564 | 2,109 |
| Novo Nordisk A/S: | | | |
| Series B | | 18,115 | 1,011 |
| Series B sponsored ADR (b) | | 229,400 | 12,798 |
| Scandinavian Tobacco Group A/S | | 62,255 | 990 |
|
| TOTAL DENMARK | | | 16,908 |
|
| France - 9.5% | | | |
| AXA SA | | 49,558 | 1,251 |
| AXA SA sponsored ADR | | 59,100 | 1,496 |
| BNP Paribas SA | | 79,616 | 4,215 |
| Compagnie de St. Gobain | | 126,500 | 5,793 |
| Havas SA | | 826,400 | 6,915 |
| Iliad SA | | 4,606 | 1,007 |
| Ipsen SA | | 42,800 | 2,590 |
| Orange SA | | 187,300 | 3,112 |
| Pernod Ricard SA | | 45,300 | 4,890 |
| Safran SA | | 25,600 | 1,764 |
| Sanofi SA | | 107,373 | 8,850 |
| Sanofi SA sponsored ADR | | 62,100 | 2,552 |
| Societe Generale Series A | | 49,362 | 1,942 |
| Total SA | | 153,455 | 7,756 |
| Ubisoft Entertainment SA (a) | | 93,324 | 2,711 |
| Vivendi SA (b) | | 290,500 | 5,581 |
|
| TOTAL FRANCE | | | 62,425 |
|
| Germany - 5.5% | | | |
| adidas AG | | 29,400 | 3,791 |
| Allianz SE | | 13,848 | 2,356 |
| Axel Springer Verlag AG | | 57,700 | 3,222 |
| Bayer AG | | 61,340 | 7,076 |
| CTS Eventim AG | | 116,482 | 4,080 |
| Deutsche Bank AG | | 31,560 | 595 |
| Deutsche Boerse AG | | 42,969 | 3,527 |
| Deutsche Telekom AG | | 228,800 | 4,016 |
| E.ON AG | | 97,992 | 1,016 |
| SAP AG | | 40,940 | 3,212 |
| SAP AG sponsored ADR | | 32,900 | 2,587 |
| Scout24 Holding GmbH (a) | | 29,400 | 1,078 |
|
| TOTAL GERMANY | | | 36,556 |
|
| Hong Kong - 0.4% | | | |
| Television Broadcasts Ltd. | | 644,200 | 2,403 |
| India - 0.4% | | | |
| Info Edge India Ltd. | | 214,247 | 2,425 |
| Just Dial Ltd. | | 25,947 | 331 |
|
| TOTAL INDIA | | | 2,756 |
|
| Ireland - 0.6% | | | |
| Paddy Power PLC (Ireland) | | 31,270 | 4,191 |
| Presbia PLC (a) | | 16,010 | 63 |
|
| TOTAL IRELAND | | | 4,254 |
|
| Isle of Man - 0.9% | | | |
| Playtech Ltd. | | 484,907 | 5,700 |
| Italy - 2.2% | | | |
| Brunello Cucinelli SpA | | 4,900 | 96 |
| DiaSorin S.p.A. | | 43,100 | 2,517 |
| Eni SpA | | 60,300 | 985 |
| Eni SpA sponsored ADR | | 22,300 | 731 |
| Intesa Sanpaolo SpA | | 2,295,700 | 6,382 |
| Mediaset SpA | | 843,600 | 3,796 |
|
| TOTAL ITALY | | | 14,507 |
|
| Japan - 20.8% | | | |
| Arcland Service Co. Ltd. | | 335,500 | 9,398 |
| Astellas Pharma, Inc. | | 734,500 | 9,903 |
| COLOPL, Inc. | | 168,300 | 3,325 |
| Daiwa Securities Group, Inc. | | 208,000 | 1,211 |
| Dentsu, Inc. | | 134,100 | 6,813 |
| Fuji Media Holdings, Inc. | | 68,900 | 780 |
| Fukuda Denshi Co. Ltd. | | 16,700 | 912 |
| Hitachi Ltd. | | 703,000 | 3,221 |
| Honda Motor Co. Ltd. | | 77,200 | 2,083 |
| Hoya Corp. | | 152,100 | 5,825 |
| Infomart Corp. (b) | | 46,400 | 415 |
| Japan Tobacco, Inc. | | 138,600 | 5,663 |
| Kakaku.com, Inc. | | 38,700 | 697 |
| Keyence Corp. | | 4,700 | 2,817 |
| Misumi Group, Inc. | | 427,000 | 5,897 |
| Mitsubishi UFJ Financial Group, Inc. | | 744,400 | 3,435 |
| MS&AD Insurance Group Holdings, Inc. | | 53,900 | 1,424 |
| Nakanishi, Inc. | | 17,900 | 587 |
| NEXT Co. Ltd. (b) | | 999,200 | 11,173 |
| Nintendo Co. Ltd. | | 17,600 | 2,383 |
| Nomura Holdings, Inc. | | 204,200 | 868 |
| Olympus Corp. | | 138,900 | 5,411 |
| ORIX Corp. | | 489,000 | 6,917 |
| Proto Corp. | | 36,500 | 479 |
| Rakuten, Inc. | | 722,400 | 7,853 |
| Recruit Holdings Co. Ltd. | | 174,800 | 5,401 |
| San-A Co. Ltd. | | 79,900 | 3,678 |
| SoftBank Corp. | | 79,300 | 4,264 |
| Sony Corp. | | 50,300 | 1,218 |
| Sony Corp. sponsored ADR | | 163,800 | 3,948 |
| Sumitomo Mitsui Financial Group, Inc. | | 70,100 | 2,109 |
| Sundrug Co. Ltd. | | 10,700 | 760 |
| Tokio Marine Holdings, Inc. | | 59,300 | 1,940 |
| Welcia Holdings Co. Ltd. | | 164,000 | 8,663 |
| Zojirushi Thermos (b) | | 374,700 | 5,589 |
|
| TOTAL JAPAN | | | 137,060 |
|
| Korea (South) - 0.7% | | | |
| LG Household & Health Care Ltd. | | 1,675 | 1,472 |
| Medy-Tox, Inc. | | 3,602 | 1,330 |
| NAVER Corp. | | 2,675 | 1,581 |
|
| TOTAL KOREA (SOUTH) | | | 4,383 |
|
| Malta - 0.8% | | | |
| Kambi Group PLC (a)(b) | | 238,000 | 4,105 |
| Unibet Group PLC unit | | 118,500 | 1,337 |
|
| TOTAL MALTA | | | 5,442 |
|
| Mauritius - 0.1% | | | |
| MakeMyTrip Ltd. (a)(b) | | 55,400 | 1,017 |
| Netherlands - 1.3% | | | |
| AEGON NV | | 109,900 | 632 |
| Arcadis NV | | 105,800 | 1,812 |
| ASML Holding NV | | 13,857 | 1,339 |
| ING Groep NV: | | | |
| (Certificaten Van Aandelen) | | 181,810 | 2,227 |
| sponsored ADR | | 59,300 | 728 |
| Koninklijke Wessanen NV | | 169,606 | 1,752 |
|
| TOTAL NETHERLANDS | | | 8,490 |
|
| New Zealand - 1.4% | | | |
| EBOS Group Ltd. | | 99,154 | 1,105 |
| Ryman Healthcare Group Ltd. | | 237,031 | 1,478 |
| Trade Maine Group Ltd. | | 2,104,509 | 6,701 |
|
| TOTAL NEW ZEALAND | | | 9,284 |
|
| Norway - 1.5% | | | |
| Schibsted ASA: | | | |
| (A Shares) | | 78,500 | 2,290 |
| (B Shares) | | 78,500 | 2,232 |
| Statoil ASA | | 70,900 | 1,248 |
| Statoil ASA sponsored ADR (b) | | 241,400 | 4,246 |
|
| TOTAL NORWAY | | | 10,016 |
|
| Philippines - 0.0% | | | |
| Melco Crown Philippines Resort (a) | | 7,218,600 | 353 |
| South Africa - 1.3% | | | |
| Naspers Ltd. Class N | | 60,900 | 8,356 |
| Spain - 1.9% | | | |
| Atresmedia Corporacion de Medios de Comunicacion SA (b) | | 293,000 | 3,815 |
| Banco Bilbao Vizcaya Argentaria SA | | 258,951 | 1,779 |
| Banco Santander SA (Spain) | | 184,604 | 935 |
| Mediaset Espana Comunicacion SA | | 279,417 | 3,628 |
| Melia Hotels International SA (b) | | 217,700 | 2,740 |
|
| TOTAL SPAIN | | | 12,897 |
|
| Sweden - 1.7% | | | |
| Arcam AB (a)(b) | | 25,600 | 558 |
| Getinge AB (B Shares) | | 99,300 | 2,100 |
| Nordea Bank AB | | 305,800 | 2,968 |
| Svenska Cellulosa AB (SCA) (B Shares) | | 145,100 | 4,570 |
| Swedbank AB (A Shares) | | 51,612 | 1,113 |
|
| TOTAL SWEDEN | | | 11,309 |
|
| Switzerland - 5.4% | | | |
| Credit Suisse Group AG | | 127,052 | 1,934 |
| Julius Baer Group Ltd. | | 15,170 | 650 |
| Nestle SA | | 230,437 | 17,196 |
| Roche Holding AG (participation certificate) | | 12,818 | 3,243 |
| Syngenta AG (Switzerland) | | 22,019 | 8,814 |
| UBS Group AG | | 208,359 | 3,606 |
|
| TOTAL SWITZERLAND | | | 35,443 |
|
| United Kingdom - 18.4% | | | |
| AstraZeneca PLC (United Kingdom) | | 69,873 | 4,009 |
| Barclays PLC | | 1,310,549 | 3,290 |
| BHP Billiton PLC | | 88,741 | 1,213 |
| BP PLC | | 368,700 | 2,031 |
| BP PLC sponsored ADR | | 50,191 | 1,685 |
| Brammer PLC (b) | | 85,132 | 217 |
| Dechra Pharmaceuticals PLC | | 73,200 | 1,183 |
| Diageo PLC | | 277,567 | 7,504 |
| Essentra PLC | | 192,525 | 2,284 |
| Foxtons Group PLC | | 470,700 | 994 |
| Howden Joinery Group PLC | | 1,560,600 | 11,265 |
| HSBC Holdings PLC: | | | |
| (United Kingdom) | | 469,000 | 3,108 |
| sponsored ADR | | 140,191 | 4,673 |
| ITV PLC | | 1,992,600 | 6,557 |
| Johnson Matthey PLC | | 30,904 | 1,304 |
| JUST EAT Ltd. (a) | | 279,914 | 1,569 |
| LivaNova PLC (a) | | 19,842 | 1,054 |
| Lloyds Banking Group PLC | | 6,590,799 | 6,469 |
| M&C Saatchi PLC | | 887,505 | 4,487 |
| Micro Focus International PLC | | 20,400 | 456 |
| Moneysupermarket.com Group PLC | | 565,100 | 2,592 |
| Nahl Group PCL | | 106,110 | 379 |
| Prudential PLC | | 68,829 | 1,359 |
| Rightmove PLC | | 112,200 | 6,325 |
| Rio Tinto PLC | | 68,432 | 2,296 |
| Rolls-Royce Group PLC | | 217,174 | 2,124 |
| Royal Bank of Scotland Group PLC (a) | | 120,080 | 404 |
| Royal Dutch Shell PLC: | | | |
| Class A (United Kingdom) | | 233,928 | 6,127 |
| Class B (United Kingdom) | | 156,090 | 4,098 |
| Shawbrook Group PLC | | 572,500 | 2,397 |
| Softcat PLC | | 95,400 | 445 |
| SThree PLC | | 218,000 | 1,083 |
| SuperGroup PLC | | 144,500 | 2,574 |
| Ted Baker PLC | | 65,400 | 2,279 |
| Virgin Money Holdings Uk PLC | | 692,700 | 3,695 |
| Vodafone Group PLC | | 2,814,600 | 9,068 |
| Whitbread PLC | | 17,336 | 981 |
| Zoopla Property Group PLC (b) | | 1,791,000 | 7,707 |
|
| TOTAL UNITED KINGDOM | | | 121,285 |
|
| United States of America - 10.8% | | | |
| Alphabet, Inc.: | | | |
| Class A | | 8,200 | 5,805 |
| Class C | | 3,214 | 2,227 |
| BlackRock, Inc. Class A | | 12,100 | 4,312 |
| Boston Beer Co., Inc. Class A (a) | | 10,800 | 1,686 |
| Dave & Buster's Entertainment, Inc. (a) | | 27,626 | 1,069 |
| Dunkin' Brands Group, Inc. | | 41,100 | 1,911 |
| eBay, Inc. (a) | | 74,100 | 1,810 |
| Electronic Arts, Inc. (a) | | 30,100 | 1,862 |
| Facebook, Inc. Class A (a) | | 58,700 | 6,902 |
| Molson Coors Brewing Co. Class B | | 14,500 | 1,387 |
| Monsanto Co. | | 26,700 | 2,501 |
| Monster Beverage Corp. | | 16,400 | 2,365 |
| PayPal Holdings, Inc. (a) | | 105,300 | 4,126 |
| Priceline Group, Inc. (a) | | 6,900 | 9,271 |
| Sprouts Farmers Market LLC (a) | | 244,900 | 6,874 |
| Tiffany & Co., Inc. | | 43,000 | 3,068 |
| TripAdvisor, Inc. (a) | | 17,900 | 1,156 |
| Visa, Inc. Class A | | 107,500 | 8,303 |
| World Wrestling Entertainment, Inc. Class A (b) | | 135,200 | 2,250 |
| Zillow Group, Inc.: | | | |
| Class A (a)(b) | | 36,400 | 911 |
| Class C (a)(b) | | 52,000 | 1,250 |
|
| TOTAL UNITED STATES OF AMERICA | | | 71,046 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $611,441) | | | 648,273 |
|
| Nonconvertible Preferred Stocks - 1.0% | | | |
| Germany - 1.0% | | | |
| Sartorius AG (non-vtg.) | | 13,500 | 3,330 |
| Volkswagen AG | | 22,900 | 3,316 |
|
| TOTAL GERMANY | | | 6,646 |
|
| United Kingdom - 0.0% | | | |
| Rolls-Royce Group PLC | | 16,406,254 | 24 |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | | | |
| (Cost $4,453) | | | 6,670 |
|
| Money Market Funds - 4.4% | | | |
| Fidelity Securities Lending Cash Central Fund, 0.42% (c)(d) | | | |
| (Cost $29,151) | | 29,151,323 | 29,151 |
| TOTAL INVESTMENT PORTFOLIO - 103.7% | | | |
| (Cost $645,045) | | | 684,094 |
| NET OTHER ASSETS (LIABILITIES) - (3.7)% | | | (24,324) |
| NET ASSETS - 100% | | | $659,770 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
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 | $22 |
| Fidelity Securities Lending Cash Central Fund | 334 |
| Total | $356 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2016, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | | | | |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Consumer Discretionary | $179,083 | $124,090 | $54,993 | $-- |
| Consumer Staples | 68,460 | 24,996 | 43,464 | -- |
| Energy | 28,907 | 6,662 | 22,245 | -- |
| Financials | 94,300 | 44,840 | 49,460 | -- |
| Health Care | 85,114 | 41,244 | 43,870 | -- |
| Industrials | 44,353 | 22,050 | 22,303 | -- |
| Information Technology | 111,545 | 86,740 | 24,805 | -- |
| Materials | 20,698 | 14,903 | 5,795 | -- |
| Telecommunication Services | 21,467 | 1,007 | 20,460 | -- |
| Utilities | 1,016 | -- | 1,016 | -- |
| Money Market Funds | 29,151 | 29,151 | -- | -- |
| Total Investments in Securities: | $684,094 | $395,683 | $288,411 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2016. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
| Transfers | Total (000s) |
| Level 1 to Level 2 | $7,119 |
| Level 2 to Level 1 | $25,663 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | | April 30, 2016 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $27,819) — See accompanying schedule:
Unaffiliated issuers (cost $615,894) | $654,943 | |
| Fidelity Central Funds (cost $29,151) | 29,151 | |
| Total Investments (cost $645,045) | | $684,094 |
| Foreign currency held at value (cost $162) | | 162 |
| Receivable for investments sold | | 3,145 |
| Receivable for fund shares sold | | 104 |
| Dividends receivable | | 3,050 |
| Distributions receivable from Fidelity Central Funds | | 83 |
| Prepaid expenses | | 1 |
| Other receivables | | 69 |
| Total assets | | 690,708 |
| Liabilities | | |
| Payable to custodian bank | $120 | |
| Payable for investments purchased | 262 | |
| Payable for fund shares redeemed | 633 | |
| Accrued management fee | 446 | |
| Distribution and service plan fees payable | 138 | |
| Other affiliated payables | 136 | |
| Other payables and accrued expenses | 52 | |
| Collateral on securities loaned, at value | 29,151 | |
| Total liabilities | | 30,938 |
| Net Assets | | $659,770 |
| Net Assets consist of: | | |
| Paid in capital | | $643,378 |
| Undistributed net investment income | | 2,765 |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (25,420) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 39,047 |
| Net Assets | | $659,770 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($66,365.3 ÷ 3,205.922 shares) | | $20.70 |
| Maximum offering price per share (100/94.25 of $20.70) | | $21.96 |
| Class T: | | |
| Net Asset Value and redemption price per share ($258,244.1 ÷ 12,159.900 shares) | | $21.24 |
| Maximum offering price per share (100/96.50 of $21.24) | | $22.01 |
| Class B: | | |
| Net Asset Value and offering price per share ($1,012.8 ÷ 50.811 shares)(a) | | $19.93 |
| Class C: | | |
| Net Asset Value and offering price per share ($17,397.2 ÷ 865.258 shares)(a) | | $20.11 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($316,750.8 ÷ 14,988.925 shares) | | $21.13 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | | Six months ended April 30, 2016 (Unaudited) |
| Investment Income | | |
| Dividends | | $7,634 |
| Income from Fidelity Central Funds | | 356 |
| Income before foreign taxes withheld | | 7,990 |
| Less foreign taxes withheld | | (666) |
| Total income | | 7,324 |
| Expenses | | |
| Management fee | | |
| Basic fee | $2,187 | |
| Performance adjustment | 509 | |
| Transfer agent fees | 652 | |
| Distribution and service plan fees | 838 | |
| Accounting and security lending fees | 163 | |
| Custodian fees and expenses | 43 | |
| Independent trustees' compensation | 1 | |
| Registration fees | 49 | |
| Audit | 49 | |
| Legal | 1 | |
| Miscellaneous | 3 | |
| Total expenses before reductions | 4,495 | |
| Expense reductions | (6) | 4,489 |
| Net investment income (loss) | | 2,835 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | 1,788 | |
| Foreign currency transactions | (34) | |
| Total net realized gain (loss) | | 1,754 |
Change in net unrealized appreciation (depreciation) on:
Investment securities | (29,297) | |
| Assets and liabilities in foreign currencies | 90 | |
| Total change in net unrealized appreciation (depreciation) | | (29,207) |
| Net gain (loss) | | (27,453) |
| Net increase (decrease) in net assets resulting from operations | | $(24,618) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Six months ended April 30, 2016 (Unaudited) | Year ended October 31, 2015 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $2,835 | $6,559 |
| Net realized gain (loss) | 1,754 | 25,791 |
| Change in net unrealized appreciation (depreciation) | (29,207) | (15,390) |
| Net increase (decrease) in net assets resulting from operations | (24,618) | 16,960 |
| Distributions to shareholders from net investment income | (2,404) | (1,529) |
| Share transactions - net increase (decrease) | 4,899 | (42,896) |
| Redemption fees | 10 | 9 |
| Total increase (decrease) in net assets | (22,113) | (27,456) |
| Net Assets | | |
| Beginning of period | 681,883 | 709,339 |
| End of period (including undistributed net investment income of $2,765 and undistributed net investment income of $2,334, respectively) | $659,770 | $681,883 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Overseas Fund Class A
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $21.59 | $21.09 | $21.61 | $16.76 | $16.13 | $17.77 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .09 | .19 | .24 | .17 | .23 | .16 |
| Net realized and unrealized gain (loss) | (.90) | .33 | (.50) | 4.97 | .64 | (1.54) |
| Total from investment operations | (.81) | .52 | (.26) | 5.14 | .87 | (1.38) |
| Distributions from net investment income | (.08) | (.02) | (.18) | (.25) | (.24) | (.21) |
| Distributions from net realized gain | – | – | (.08) | (.04) | – | (.05) |
| Total distributions | (.08) | (.02) | (.26) | (.29) | (.24) | (.26) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $20.70 | $21.59 | $21.09 | $21.61 | $16.76 | $16.13 |
| Total ReturnC,D,E | (3.77)% | 2.46% | (1.24)% | 31.13% | 5.51% | (7.95)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 1.42%H | 1.35% | 1.30% | 1.37% | 1.33% | 1.34% |
| Expenses net of fee waivers, if any | 1.42%H | 1.35% | 1.30% | 1.37% | 1.33% | 1.34% |
| Expenses net of all reductions | 1.42%H | 1.34% | 1.30% | 1.36% | 1.32% | 1.32% |
| Net investment income (loss) | .84%H | .89% | 1.10% | .91% | 1.43% | .90% |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $66 | $78 | $65 | $69 | $60 | $60 |
| Portfolio turnover rateI | 38%H | 29% | 39% | 37% | 36% | 44% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Overseas Fund Class T
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $22.11 | $21.62 | $22.16 | $17.16 | $16.50 | $18.18 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .07 | .15 | .21 | .14 | .20 | .13 |
| Net realized and unrealized gain (loss) | (.92) | .34 | (.52) | 5.11 | .66 | (1.59) |
| Total from investment operations | (.85) | .49 | (.31) | 5.25 | .86 | (1.46) |
| Distributions from net investment income | (.02) | – | (.15) | (.21) | (.20) | (.17) |
| Distributions from net realized gain | – | – | (.08) | (.04) | – | (.05) |
| Total distributions | (.02) | – | (.23) | (.25) | (.20) | (.22) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $21.24 | $22.11 | $21.62 | $22.16 | $17.16 | $16.50 |
| Total ReturnC,D,E | (3.85)% | 2.27% | (1.42)% | 30.96% | 5.32% | (8.17)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 1.63%H | 1.55% | 1.48% | 1.53% | 1.51% | 1.52% |
| Expenses net of fee waivers, if any | 1.63%H | 1.55% | 1.48% | 1.53% | 1.51% | 1.51% |
| Expenses net of all reductions | 1.63%H | 1.55% | 1.48% | 1.52% | 1.50% | 1.49% |
| Net investment income (loss) | .63%H | .69% | .92% | .74% | 1.25% | .73% |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $258 | $285 | $293 | $329 | $271 | $305 |
| Portfolio turnover rateI | 38%H | 29% | 39% | 37% | 36% | 44% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Overseas Fund Class B
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.79 | $20.46 | $21.02 | $16.25 | $15.58 | $17.18 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | – | .02 | .07 | .03 | .10 | .03 |
| Net realized and unrealized gain (loss) | (.86) | .31 | (.49) | 4.85 | .63 | (1.51) |
| Total from investment operations | (.86) | .33 | (.42) | 4.88 | .73 | (1.48) |
| Distributions from net investment income | – | – | (.06) | (.07) | (.06) | (.08) |
| Distributions from net realized gain | – | – | (.08) | (.04) | – | (.05) |
| Total distributions | – | – | (.14) | (.11) | (.06) | (.12)B |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
| Net asset value, end of period | $19.93 | $20.79 | $20.46 | $21.02 | $16.25 | $15.58 |
| Total ReturnD,E,F | (4.14)% | 1.61% | (2.03)% | 30.21% | 4.72% | (8.67)% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 2.23%I | 2.16% | 2.09% | 2.12% | 2.09% | 2.10% |
| Expenses net of fee waivers, if any | 2.22%I | 2.15% | 2.09% | 2.12% | 2.09% | 2.09% |
| Expenses net of all reductions | 2.22%I | 2.15% | 2.09% | 2.11% | 2.07% | 2.07% |
| Net investment income (loss) | .03%I | .09% | .31% | .16% | .67% | .15% |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $1 | $2 | $2 | $3 | $3 | $4 |
| Portfolio turnover rateJ | 38%I | 29% | 39% | 37% | 36% | 44% |
A Calculated based on average shares outstanding during the period.
B 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.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Overseas Fund Class C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.98 | $20.63 | $21.21 | $16.43 | $15.78 | $17.39 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | – | .02 | .07 | .03 | .11 | .03 |
| Net realized and unrealized gain (loss) | (.87) | .33 | (.50) | 4.89 | .64 | (1.52) |
| Total from investment operations | (.87) | .35 | (.43) | 4.92 | .75 | (1.49) |
| Distributions from net investment income | – | – | (.07) | (.10) | (.10) | (.07) |
| Distributions from net realized gain | – | – | (.08) | (.04) | – | (.05) |
| Total distributions | – | – | (.15) | (.14) | (.10) | (.12) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $20.11 | $20.98 | $20.63 | $21.21 | $16.43 | $15.78 |
| Total ReturnC,D,E | (4.15)% | 1.70% | (2.06)% | 30.16% | 4.78% | (8.67)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 2.23%H | 2.15% | 2.08% | 2.12% | 2.09% | 2.09% |
| Expenses net of fee waivers, if any | 2.22%H | 2.15% | 2.08% | 2.12% | 2.09% | 2.09% |
| Expenses net of all reductions | 2.22%H | 2.14% | 2.08% | 2.10% | 2.07% | 2.07% |
| Net investment income (loss) | .03%H | .09% | .32% | .16% | .67% | .15% |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $17 | $19 | $19 | $21 | $16 | $19 |
| Portfolio turnover rateI | 38%H | 29% | 39% | 37% | 36% | 44% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Overseas Fund Class I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $22.06 | $21.55 | $22.07 | $17.11 | $16.45 | $18.10 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .12 | .27 | .32 | .24 | .29 | .23 |
| Net realized and unrealized gain (loss) | (.91) | .34 | (.52) | 5.08 | .65 | (1.59) |
| Total from investment operations | (.79) | .61 | (.20) | 5.32 | .94 | (1.36) |
| Distributions from net investment income | (.14) | (.10) | (.24) | (.31) | (.28) | (.24) |
| Distributions from net realized gain | – | – | (.08) | (.04) | – | (.05) |
| Total distributions | (.14) | (.10) | (.32) | (.36)B | (.28) | (.29) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
| Net asset value, end of period | $21.13 | $22.06 | $21.55 | $22.07 | $17.11 | $16.45 |
| Total ReturnD,E | (3.62)% | 2.82% | (.95)% | 31.63% | 5.91% | (7.70)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 1.11%H | 1.03% | .96% | 1.02% | .99% | 1.00% |
| Expenses net of fee waivers, if any | 1.11%H | 1.03% | .96% | 1.02% | .99% | .99% |
| Expenses net of all reductions | 1.10%H | 1.02% | .96% | 1.01% | .97% | .97% |
| Net investment income (loss) | 1.15%H | 1.21% | 1.44% | 1.26% | 1.77% | 1.25% |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $317 | $298 | $330 | $307 | $257 | $349 |
| Portfolio turnover rateI | 38%H | 29% | 39% | 37% | 36% | 44% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.36 per share is comprised of distributions from net investment income of $.314 and distributions from net realized gain of $.041 per share.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2016
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor Overseas Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Class I shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a maximum holding period of seven years from the initial date of purchase.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective on or about July 1, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of April 30, 2016, including information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, 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 | $109,054 |
| Gross unrealized depreciation | (78,065) |
| Net unrealized appreciation (depreciation) on securities | $30,989 |
| Tax cost | $653,105 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2017 | $(16,742) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $125,496 and $121,172, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .424% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the investment performance of the asset-weighted return of all classes as compared to its benchmark index, the MSCI EAFE Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .83% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
| Class A | -% | .25% | $89 | $- |
| Class T | .25% | .25% | 656 | - |
| Class B | .75% | .25% | 6 | 5 |
| Class C | .75% | .25% | 87 | 8 |
| | | | $838 | $13 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $3 |
| Class T | 2 |
| Class B(a) | –(b) |
| Class C(a) | 1 |
| | $6 |
(a) 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.
(b) In the amount of less than five hundred dollars.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| | Amount | % of
Class-Level Average
Net Assets(a) |
| Class A | $87 | .24 |
| Class T | 266 | .20 |
| Class B | 2 | .30 |
| Class C | 26 | .30 |
| Class I | 271 | .18 |
| | $652 | |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were in an amount of less than five hundred dollars for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $382. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $334, including $13 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $3 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $3.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| From net investment income | | |
| Class A | $285 | $59 |
| Class T | 255 | – |
| Class I | 1,864 | 1,470 |
| Total | $2,404 | $1,529 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| Class A | | | | |
| Shares sold | 239 | 1,338 | $4,888 | $29,635 |
| Reinvestment of distributions | 13 | 3 | 274 | 56 |
| Shares redeemed | (678) | (804) | (13,727) | (17,607) |
| Net increase (decrease) | (426) | 537 | $(8,565) | $12,084 |
| Class T | | | | |
| Shares sold | 936 | 2,579 | $19,462 | $57,864 |
| Reinvestment of distributions | 11 | – | 250 | – |
| Shares redeemed | (1,690) | (3,247) | (35,218) | (71,824) |
| Net increase (decrease) | (743) | (668) | $(15,506) | $(13,960) |
| Class B | | | | |
| Shares sold | 1 | 32 | $15 | $692 |
| Shares redeemed | (29) | (54) | (562) | (1,123) |
| Net increase (decrease) | (28) | (22) | $(547) | $(431) |
| Class C | | | | |
| Shares sold | 49 | 204 | $978 | $4,420 |
| Shares redeemed | (77) | (230) | (1,521) | (4,851) |
| Net increase (decrease) | (28) | (26) | $(543) | $(431) |
| Class I | | | | |
| Shares sold | 1,820 | 1,548 | $36,946 | $33,691 |
| Reinvestment of distributions | 49 | 67 | 1,078 | 1,452 |
| Shares redeemed | (383) | (3,406) | (7,964) | (75,301) |
| Net increase (decrease) | 1,486 | (1,791) | $30,060 | $(40,158) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, Strategic Advisers International II Fund was the owner of record of approximately 18% of the total outstanding shares of the Fund.
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, 2015 to April 30, 2016).
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.
| | Annualized Expense Ratio-A | Beginning
Account Value
November 1, 2015 | Ending
Account Value
April 30, 2016 | Expenses Paid
During Period-B
November 1, 2015
to April 30, 2016 |
| Class A | 1.42% | | | |
| Actual | | $1,000.00 | $962.30 | $6.93 |
| Hypothetical-C | | $1,000.00 | $1,017.80 | $7.12 |
| Class T | 1.63% | | | |
| Actual | | $1,000.00 | $961.50 | $7.95 |
| Hypothetical-C | | $1,000.00 | $1,016.76 | $8.17 |
| Class B | 2.22% | | | |
| Actual | | $1,000.00 | $958.60 | $10.81 |
| Hypothetical-C | | $1,000.00 | $1,013.82 | $11.12 |
| Class C | 2.23% | | | |
| Actual | | $1,000.00 | $958.50 | $10.86 |
| Hypothetical-C | | $1,000.00 | $1,013.77 | $11.17 |
| Class I | 1.11% | | | |
| Actual | | $1,000.00 | $963.80 | $5.42 |
| Hypothetical-C | | $1,000.00 | $1,019.34 | $5.57 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
C 5% return per year before expenses
OS-SANN-0616
1.703565.118
Fidelity Advisor® Value Leaders Fund
Class A, Class T, Class B and Class C
Semi-Annual Report April 30, 2016 |
|
Contents
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. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Berkshire Hathaway, Inc. Class B | 4.3 | 3.2 |
| EMC Corp. | 4.2 | 2.8 |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | 4.1 | 4.3 |
| JPMorgan Chase & Co. | 3.5 | 3.7 |
| Wells Fargo & Co. | 3.3 | 3.4 |
| Alphabet, Inc. Class A | 3.2 | 3.2 |
| SanDisk Corp. | 3.1 | 0.0 |
| Johnson & Johnson | 2.6 | 3.6 |
| Allergan PLC | 2.5 | 0.0 |
| CF Industries Holdings, Inc. | 2.4 | 1.9 |
| | 33.2 | |
Top Five Market Sectors as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Financials | 26.6 | 27.8 |
| Information Technology | 23.0 | 20.6 |
| Health Care | 16.2 | 17.0 |
| Consumer Discretionary | 9.8 | 10.4 |
| Energy | 7.8 | 8.6 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2016* |
| | Stocks | 98.1% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 1.9% |
* Foreign investments - 25.4%
| As of October 31, 2015* |
| | Stocks | 98.7% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 1.3% |
* Foreign investments - 19.9%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments April 30, 2016 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 98.1% | | | |
| | | Shares | Value |
| CONSUMER DISCRETIONARY - 9.8% | | | |
| Media - 7.9% | | | |
| Cablevision Systems Corp. - NY Group Class A | | 6,300 | $210,357 |
| CBS Corp. Class B | | 11,900 | 665,329 |
| Starz Series A (a) | | 16,700 | 454,407 |
| Twenty-First Century Fox, Inc. Class A | | 21,200 | 641,512 |
| Viacom, Inc. Class B (non-vtg.) | | 16,300 | 666,670 |
| | | | 2,638,275 |
| Specialty Retail - 0.8% | | | |
| GNC Holdings, Inc. | | 11,700 | 285,012 |
| Textiles, Apparel & Luxury Goods - 1.1% | | | |
| PVH Corp. | | 3,700 | 353,720 |
|
| TOTAL CONSUMER DISCRETIONARY | | | 3,277,007 |
|
| CONSUMER STAPLES - 2.9% | | | |
| Beverages - 1.8% | | | |
| C&C Group PLC | | 134,026 | 602,049 |
| Food & Staples Retailing - 1.1% | | | |
| Rite Aid Corp. (a) | | 43,200 | 347,760 |
| Safeway, Inc.: | | | |
| rights (a) | | 4,300 | 0 |
| rights (a) | | 4,300 | 774 |
| | | | 348,534 |
|
| TOTAL CONSUMER STAPLES | | | 950,583 |
|
| ENERGY - 7.8% | | | |
| Energy Equipment & Services - 0.3% | | | |
| BW Offshore Ltd. | | 484,800 | 105,969 |
| Oil, Gas & Consumable Fuels - 7.5% | | | |
| Phillips 66 Co. | | 5,100 | 418,761 |
| Suncor Energy, Inc. | | 17,400 | 510,753 |
| Teekay Corp. | | 52,500 | 588,000 |
| Teekay LNG Partners LP | | 23,200 | 318,768 |
| Teekay Offshore Partners LP | | 109,100 | 651,327 |
| | | | 2,487,609 |
|
| TOTAL ENERGY | | | 2,593,578 |
|
| FINANCIALS - 26.6% | | | |
| Banks - 8.6% | | | |
| JPMorgan Chase & Co. | | 18,325 | 1,158,140 |
| U.S. Bancorp | | 13,871 | 592,153 |
| Wells Fargo & Co. | | 22,026 | 1,100,859 |
| | | | 2,851,152 |
| Capital Markets - 1.4% | | | |
| Goldman Sachs Group, Inc. | | 2,900 | 475,919 |
| Consumer Finance - 3.1% | | | |
| Capital One Financial Corp. | | 6,600 | 477,774 |
| Discover Financial Services | | 9,900 | 557,073 |
| | | | 1,034,847 |
| Diversified Financial Services - 4.3% | | | |
| Berkshire Hathaway, Inc. Class B (a) | | 9,700 | 1,411,158 |
| Insurance - 7.0% | | | |
| Allstate Corp. | | 7,740 | 503,487 |
| Chubb Ltd. | | 4,800 | 565,728 |
| Prudential PLC | | 31,461 | 621,025 |
| The Travelers Companies, Inc. | | 5,900 | 648,410 |
| | | | 2,338,650 |
| Real Estate Investment Trusts - 0.6% | | | |
| Annaly Capital Management, Inc. | | 19,400 | 202,148 |
| Real Estate Management & Development - 1.6% | | | |
| CBRE Group, Inc. (a) | | 17,700 | 524,451 |
|
| TOTAL FINANCIALS | | | 8,838,325 |
|
| HEALTH CARE - 16.2% | | | |
| Biotechnology - 3.6% | | | |
| Amgen, Inc. | | 4,300 | 680,690 |
| Baxalta, Inc. | | 11,600 | 486,620 |
| Dyax Corp. rights 12/31/19 (a) | | 15,500 | 36,580 |
| | | | 1,203,890 |
| Health Care Providers & Services - 1.9% | | | |
| Cigna Corp. | | 4,500 | 623,430 |
| Pharmaceuticals - 10.7% | | | |
| Allergan PLC (a) | | 3,800 | 822,928 |
| Johnson & Johnson | | 7,800 | 874,224 |
| Sanofi SA sponsored ADR | | 12,100 | 497,310 |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | | 24,900 | 1,355,805 |
| | | | 3,550,267 |
|
| TOTAL HEALTH CARE | | | 5,377,587 |
|
| INDUSTRIALS - 5.7% | | | |
| Aerospace & Defense - 1.0% | | | |
| United Technologies Corp. | | 3,300 | 344,421 |
| Machinery - 2.2% | | | |
| Deere & Co. (b) | | 8,600 | 723,346 |
| Professional Services - 1.5% | | | |
| Dun & Bradstreet Corp. | | 4,500 | 496,845 |
| Trading Companies & Distributors - 1.0% | | | |
| AerCap Holdings NV (a) | | 8,100 | 324,081 |
|
| TOTAL INDUSTRIALS | | | 1,888,693 |
|
| INFORMATION TECHNOLOGY - 23.0% | | | |
| Communications Equipment - 3.4% | | | |
| Cisco Systems, Inc. | | 21,164 | 581,798 |
| Harris Corp. | | 6,900 | 552,069 |
| | | | 1,133,867 |
| Internet Software& Services - 4.4% | | | |
| Alphabet, Inc. Class A | | 1,483 | 1,049,786 |
| eBay, Inc. (a) | | 16,000 | 390,880 |
| | | | 1,440,666 |
| IT Services - 1.6% | | | |
| The Western Union Co. | | 26,300 | 526,000 |
| Software - 1.9% | | | |
| Oracle Corp. | | 8,800 | 350,768 |
| VMware, Inc. Class A (a)(b) | | 5,100 | 290,241 |
| | | | 641,009 |
| Technology Hardware, Storage & Peripherals - 11.7% | | | |
| Apple, Inc. | | 7,400 | 693,676 |
| EMC Corp. | | 52,800 | 1,378,608 |
| Samsung Electronics Co. Ltd. | | 712 | 773,727 |
| SanDisk Corp. | | 13,900 | 1,044,307 |
| | | | 3,890,318 |
|
| TOTAL INFORMATION TECHNOLOGY | | | 7,631,860 |
|
| MATERIALS - 4.5% | | | |
| Chemicals - 4.5% | | | |
| CF Industries Holdings, Inc. | | 24,400 | 806,908 |
| LyondellBasell Industries NV Class A | | 8,200 | 677,894 |
| | | | 1,484,802 |
| UTILITIES - 1.6% | | | |
| Electric Utilities - 1.6% | | | |
| Exelon Corp. | | 15,700 | 550,913 |
| TOTAL COMMON STOCKS | | | |
| (Cost $32,525,833) | | | 32,593,348 |
|
| Money Market Funds - 4.4% | | | |
| Fidelity Cash Central Fund, 0.38% (c) | | 632,112 | 632,112 |
| Fidelity Securities Lending Cash Central Fund, 0.42% (c)(d) | | 834,625 | 834,625 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $1,466,737) | | | 1,466,737 |
| TOTAL INVESTMENT PORTFOLIO - 102.5% | | | |
| (Cost $33,992,570) | | | 34,060,085 |
| NET OTHER ASSETS (LIABILITIES) - (2.5)% | | | (821,581) |
| NET ASSETS - 100% | | | $33,238,504 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $1,025 |
| Fidelity Securities Lending Cash Central Fund | 2,599 |
| Total | $3,624 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2016, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Consumer Discretionary | $3,277,007 | $3,277,007 | $-- | $-- |
| Consumer Staples | 950,583 | 949,809 | -- | 774 |
| Energy | 2,593,578 | 2,593,578 | -- | -- |
| Financials | 8,838,325 | 8,217,300 | 621,025 | -- |
| Health Care | 5,377,587 | 5,341,007 | -- | 36,580 |
| Industrials | 1,888,693 | 1,888,693 | -- | -- |
| Information Technology | 7,631,860 | 7,631,860 | -- | -- |
| Materials | 1,484,802 | 1,484,802 | -- | -- |
| Utilities | 550,913 | 550,913 | -- | -- |
| Money Market Funds | 1,466,737 | 1,466,737 | -- | -- |
| Total Investments in Securities: | $34,060,085 | $33,401,706 | $621,025 | $37,354 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 74.6% |
| Marshall Islands | 4.7% |
| Ireland | 4.3% |
| Israel | 4.1% |
| Netherlands | 3.1% |
| Korea (South) | 2.3% |
| United Kingdom | 1.9% |
| Switzerland | 1.7% |
| Canada | 1.5% |
| France | 1.5% |
| Others (Individually Less Than 1%) | 0.3% |
| | 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | April 30, 2016 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $817,373) — See accompanying schedule:
Unaffiliated issuers (cost $32,525,833) | $32,593,348 | |
| Fidelity Central Funds (cost $1,466,737) | 1,466,737 | |
| Total Investments (cost $33,992,570) | | $34,060,085 |
| Receivable for investments sold | | 67,088 |
| Receivable for fund shares sold | | 8,187 |
| Dividends receivable | | 49,051 |
| Distributions receivable from Fidelity Central Funds | | 686 |
| Prepaid expenses | | 22 |
| Receivable from investment adviser for expense reductions | | 10,340 |
| Other receivables | | 599 |
| Total assets | | 34,196,058 |
| Liabilities | | |
| Payable for investments purchased | $29,351 | |
| Payable for fund shares redeemed | 30,986 | |
| Accrued management fee | 17,020 | |
| Distribution and service plan fees payable | 11,348 | |
| Other affiliated payables | 7,811 | |
| Other payables and accrued expenses | 26,413 | |
| Collateral on securities loaned, at value | 834,625 | |
| Total liabilities | | 957,554 |
| Net Assets | | $33,238,504 |
| Net Assets consist of: | | |
| Paid in capital | | $58,129,253 |
| Undistributed net investment income | | 25,645 |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (24,984,439) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 68,045 |
| Net Assets | | $33,238,504 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($17,920,870 ÷ 1,123,250 shares) | | $15.95 |
| Maximum offering price per share (100/94.25 of $15.95) | | $16.92 |
| Class T: | | |
| Net Asset Value and redemption price per share ($6,948,659 ÷ 434,481 shares) | | $15.99 |
| Maximum offering price per share (100/96.50 of $15.99) | | $16.57 |
| Class B: | | |
| Net Asset Value and offering price per share ($160,978 ÷ 10,148 shares)(a) | | $15.86 |
| Class C: | | |
| Net Asset Value and offering price per share ($5,371,060 ÷ 345,417 shares)(a) | | $15.55 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($2,836,937 ÷ 176,561 shares) | | $16.07 |
(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.
Statement of Operations
| | | Six months ended April 30, 2016 (Unaudited) |
| Investment Income | | |
| Dividends | | $346,290 |
| Income from Fidelity Central Funds | | 3,624 |
| Total income | | 349,914 |
| Expenses | | |
| Management fee | | |
| Basic fee | $89,837 | |
| Performance adjustment | 14,612 | |
| Transfer agent fees | 41,283 | |
| Distribution and service plan fees | 67,288 | |
| Accounting and security lending fees | 6,431 | |
| Custodian fees and expenses | 3,914 | |
| Independent trustees' compensation | 72 | |
| Registration fees | 29,902 | |
| Audit | 29,948 | |
| Legal | 910 | |
| Miscellaneous | 110 | |
| Total expenses before reductions | 284,307 | |
| Expense reductions | (54,306) | 230,001 |
| Net investment income (loss) | | 119,913 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (303,544) | |
| Foreign currency transactions | 449 | |
| Total net realized gain (loss) | | (303,095) |
Change in net unrealized appreciation (depreciation) on:
Investment securities | (101,688) | |
| Assets and liabilities in foreign currencies | 531 | |
| Total change in net unrealized appreciation (depreciation) | | (101,157) |
| Net gain (loss) | | (404,252) |
| Net increase (decrease) in net assets resulting from operations | | $(284,339) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended April 30, 2016 (Unaudited) | Year ended October 31, 2015 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $119,913 | $535,049 |
| Net realized gain (loss) | (303,095) | 1,890,187 |
| Change in net unrealized appreciation (depreciation) | (101,157) | (1,350,224) |
| Net increase (decrease) in net assets resulting from operations | (284,339) | 1,075,012 |
| Distributions to shareholders from net investment income | (492,638) | (169,686) |
| Distributions to shareholders from net realized gain | (36,002) | (24,958) |
| Total distributions | (528,640) | (194,644) |
| Share transactions - net increase (decrease) | (819,733) | 4,980,098 |
| Total increase (decrease) in net assets | (1,632,712) | 5,860,466 |
| Net Assets | | |
| Beginning of period | 34,871,216 | 29,010,750 |
| End of period (including undistributed net investment income of $25,645 and undistributed net investment income of $398,370, respectively) | $33,238,504 | $34,871,216 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Leaders Fund Class A
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $16.34 | $15.79 | $13.73 | $10.82 | $9.96 | $10.12 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .07 | .29 | .12 | .10 | .13 | .10 |
| Net realized and unrealized gain (loss) | (.18) | .39B | 1.94 | 3.01 | .85 | (.14) |
| Total from investment operations | (.11) | .68 | 2.06 | 3.11 | .98 | (.04) |
| Distributions from net investment income | (.27) | (.12) | – | (.20) | (.12) | (.11) |
| Distributions from net realized gain | (.02) | (.01) | – | – | –C | (.01) |
| Total distributions | (.28)D | (.13) | – | (.20) | (.12) | (.12) |
| Net asset value, end of period | $15.95 | $16.34 | $15.79 | $13.73 | $10.82 | $9.96 |
| Total ReturnE,F,G | (.68)% | 4.32%B | 15.00% | 29.24% | 10.00% | (.40)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.56%J | 1.49% | 1.30% | 1.33% | 1.28% | 1.24% |
| Expenses net of fee waivers, if any | 1.25%J | 1.25% | 1.25% | 1.25% | 1.25% | 1.24% |
| Expenses net of all reductions | 1.24%J | 1.25% | 1.25% | 1.23% | 1.24% | 1.23% |
| Net investment income (loss) | .90%J | 1.78% | .78% | .82% | 1.26% | .91% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $17,921 | $18,237 | $15,067 | $15,339 | $14,705 | $15,484 |
| Portfolio turnover rateK | 80%J | 54% | 182% | 87% | 94% | 161% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 4.01%.
C Amount represents less than $.005 per share.
D Total distributions of $.28 per share is comprised of distributions from net investment income of $.265 and distributions from net realized gain of $.017 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Leaders Fund Class T
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $16.33 | $15.78 | $13.75 | $10.82 | $9.96 | $10.08 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .05 | .25 | .08 | .07 | .10 | .07 |
| Net realized and unrealized gain (loss) | (.18) | .39B | 1.95 | 3.02 | .85 | (.13) |
| Total from investment operations | (.13) | .64 | 2.03 | 3.09 | .95 | (.06) |
| Distributions from net investment income | (.20) | (.08) | – | (.16) | (.09) | (.05) |
| Distributions from net realized gain | (.02) | (.01) | – | – | –C | (.01) |
| Total distributions | (.21)D | (.09) | – | (.16) | (.09) | (.06) |
| Net asset value, end of period | $15.99 | $16.33 | $15.78 | $13.75 | $10.82 | $9.96 |
| Total ReturnE,F,G | (.80)% | 4.04%B | 14.76% | 28.97% | 9.68% | (.64)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.86%J | 1.78% | 1.58% | 1.60% | 1.55% | 1.49% |
| Expenses net of fee waivers, if any | 1.50%J | 1.50% | 1.50% | 1.50% | 1.50% | 1.49% |
| Expenses net of all reductions | 1.50%J | 1.50% | 1.50% | 1.48% | 1.49% | 1.48% |
| Net investment income (loss) | .64%J | 1.53% | .53% | .57% | 1.01% | .67% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $6,949 | $7,672 | $7,819 | $6,569 | $6,145 | $8,254 |
| Portfolio turnover rateK | 80%J | 54% | 182% | 87% | 94% | 161% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 3.73%.
C Amount represents less than $.005 per share.
D Total distributions of $.21 per share is comprised of distributions from net investment income of $.195 and distributions from net realized gain of $.017 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Leaders Fund Class B
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $16.07 | $15.53 | $13.60 | $10.70 | $9.84 | $9.99 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .01 | .17 | –B | .01 | .05 | .02 |
| Net realized and unrealized gain (loss) | (.18) | .38C | 1.93 | 2.99 | .85 | (.13) |
| Total from investment operations | (.17) | .55 | 1.93 | 3.00 | .90 | (.11) |
| Distributions from net investment income | (.02) | – | – | (.10) | (.03) | (.03) |
| Distributions from net realized gain | (.02) | (.01) | – | – | –B | (.01) |
| Total distributions | (.04) | (.01) | – | (.10) | (.04)D | (.04) |
| Net asset value, end of period | $15.86 | $16.07 | $15.53 | $13.60 | $10.70 | $9.84 |
| Total ReturnE,F,G | (1.06)% | 3.56%C | 14.19% | 28.31% | 9.14% | (1.14)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 2.37%J | 2.33% | 2.12% | 2.10% | 2.04% | 1.99% |
| Expenses net of fee waivers, if any | 2.00%J | 2.00% | 2.00% | 2.00% | 2.00% | 1.99% |
| Expenses net of all reductions | 2.00%J | 2.00% | 2.00% | 1.98% | 1.99% | 1.98% |
| Net investment income (loss) | .14%J | 1.03% | .03% | .07% | .51% | .16% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $161 | $247 | $406 | $719 | $895 | $1,110 |
| Portfolio turnover rateK | 80%J | 54% | 182% | 87% | 94% | 161% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 3.25%.
D Total distributions of $.04 per share is comprised of distributions from net investment income of $.031 and distributions from net realized gain of $.004 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Leaders Fund Class C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $15.88 | $15.35 | $13.44 | $10.59 | $9.75 | $9.92 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .01 | .17 | –B | .01 | .05 | .02 |
| Net realized and unrealized gain (loss) | (.18) | .37C | 1.91 | 2.95 | .84 | (.13) |
| Total from investment operations | (.17) | .54 | 1.91 | 2.96 | .89 | (.11) |
| Distributions from net investment income | (.15) | – | – | (.11) | (.05) | (.05) |
| Distributions from net realized gain | (.02) | (.01) | – | – | –B | (.01) |
| Total distributions | (.16)D | (.01) | – | (.11) | (.05) | (.06) |
| Net asset value, end of period | $15.55 | $15.88 | $15.35 | $13.44 | $10.59 | $9.75 |
| Total ReturnE,F,G | (1.06)% | 3.54%C | 14.21% | 28.27% | 9.21% | (1.18)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 2.37%J | 2.29% | 2.09% | 2.08% | 2.04% | 2.00% |
| Expenses net of fee waivers, if any | 2.00%J | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% |
| Expenses net of all reductions | 2.00%J | 2.00% | 2.00% | 1.97% | 1.99% | 1.98% |
| Net investment income (loss) | .14%J | 1.03% | .03% | .07% | .51% | .16% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $5,371 | $5,662 | $4,458 | $4,340 | $3,299 | $3,775 |
| Portfolio turnover rateK | 80%J | 54% | 182% | 87% | 94% | 161% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 3.23%.
D Total distributions of $.16 per share is comprised of distributions from net investment income of $.147 and distributions from net realized gain of $.017 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Leaders Fund Class I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $16.48 | $15.93 | $13.81 | $10.89 | $10.04 | $10.19 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .09 | .34 | .15 | .14 | .18 | .14 |
| Net realized and unrealized gain (loss) | (.17) | .39B | 1.97 | 3.02 | .83 | (.15) |
| Total from investment operations | (.08) | .73 | 2.12 | 3.16 | 1.01 | (.01) |
| Distributions from net investment income | (.31) | (.17) | – | (.24) | (.16) | (.13) |
| Distributions from net realized gain | (.02) | (.01) | – | – | –C | (.01) |
| Total distributions | (.33) | (.18) | – | (.24) | (.16) | (.14) |
| Net asset value, end of period | $16.07 | $16.48 | $15.93 | $13.81 | $10.89 | $10.04 |
| Total ReturnD,E | (.53)% | 4.58%B | 15.35% | 29.65% | 10.30% | (.11)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 1.27%H | 1.18% | 1.01% | .94% | .83% | .89% |
| Expenses net of fee waivers, if any | 1.00%H | 1.00% | 1.00% | .94% | .83% | .89% |
| Expenses net of all reductions | .99%H | 1.00% | 1.00% | .92% | .82% | .88% |
| Net investment income (loss) | 1.15%H | 2.03% | 1.03% | 1.13% | 1.68% | 1.27% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $2,837 | $3,052 | $1,261 | $1,767 | $1,195 | $523 |
| Portfolio turnover rateI | 80%H | 54% | 182% | 87% | 94% | 161% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 4.27%.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2016
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 Class I shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a maximum holding period of seven years from the initial date of purchase.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective on or about July 1, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of April 30, 2016 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, 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 | $2,399,163 |
| Gross unrealized depreciation | (2,574,009) |
| Net unrealized appreciation (depreciation) on securities | $(174,846) |
| Tax cost | $34,234,931 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2016 | $(9,484,911) |
| 2017 | (14,819,668) |
| 2019 | (169,201) |
| Total capital loss carryforward | $(24,473,780) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $13,091,357 and $14,447,732, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Class I of the Fund as compared to its benchmark index, the Russell 1000 Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .64% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
| Class A | -% | .25% | $21,649 | $1,221 |
| Class T | .25% | .25% | 17,350 | - |
| Class B | .75% | .25% | 999 | 751 |
| Class C | .75% | .25% | 27,290 | 3,710 |
| | | | $67,288 | $5,682 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $3,544 |
| Class T | 550 |
| Class B(a) | 28 |
| Class C(a) | 84 |
| | $4,206 |
(a) When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| | Amount | % of
Class-Level Average
Net Assets(a) |
| Class A | $20,311 | .23 |
| Class T | 9,792 | .28 |
| Class B | 299 | .30 |
| Class C | 8,090 | .30 |
| Class I | 2,791 | .20 |
| | $ 41,283 | |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $389 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $29 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $2,599. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
The investment adviser voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| | Expense
Limitations | Reimbursement |
| Class A | 1.25% | $26,775 |
| Class T | 1.50% | 12,241 |
| Class B | 2.00% | 368 |
| Class C | 2.00% | 10,005 |
| Class I | 1.00% | 3,845 |
| | | $53,234 |
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $943 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $8.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $121.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| From net investment income | | |
| Class A | $296,202 | $114,891 |
| Class T | 86,018 | 37,662 |
| Class B | 332 | – |
| Class C | 52,765 | – |
| Class I | 57,321 | 17,133 |
| Total | $492,638 | $169,686 |
| From net realized gain | | |
| Class A | $19,002 | $12,739 |
| Class T | 7,499 | 6,567 |
| Class B | 245 | 311 |
| Class C | 6,102 | 3,946 |
| Class I | 3,154 | 1,395 |
| Total | $36,002 | $24,958 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| Class A | | | | |
| Shares sold | 115,877 | 347,210 | $1,799,514 | $5,762,966 |
| Reinvestment of distributions | 19,140 | 7,654 | 309,115 | 124,714 |
| Shares redeemed | (127,836) | (192,743) | (1,985,603) | (3,168,130) |
| Net increase (decrease) | 7,181 | 162,121 | $123,026 | $2,719,550 |
| Class T | | | | |
| Shares sold | 12,903 | 61,595 | $201,979 | $1,008,225 |
| Reinvestment of distributions | 5,586 | 2,644 | 90,492 | 43,169 |
| Shares redeemed | (53,819) | (89,859) | (855,461) | (1,479,942) |
| Net increase (decrease) | (35,330) | (25,620) | $(562,990) | $(428,548) |
| Class B | | | | |
| Shares sold | 123 | 507 | $1,901 | $8,265 |
| Reinvestment of distributions | 32 | 18 | 520 | 292 |
| Shares redeemed | (5,387) | (11,295) | (84,508) | (181,334) |
| Net increase (decrease) | (5,232) | (10,770) | $(82,087) | $(172,777) |
| Class C | | | | |
| Shares sold | 33,538 | 112,671 | $510,123 | $1,824,580 |
| Reinvestment of distributions | 3,672 | 239 | 57,973 | 3,850 |
| Shares redeemed | (48,473) | (46,657) | (735,458) | (741,831) |
| Net increase (decrease) | (11,263) | 66,253 | $(167,362) | $1,086,599 |
| Class I | | | | |
| Shares sold | 36,595 | 213,391 | $576,366 | $3,568,936 |
| Reinvestment of distributions | 3,673 | 1,111 | 59,684 | 18,206 |
| Shares redeemed | (48,918) | (108,443) | (766,370) | (1,811,868) |
| Net increase (decrease) | (8,650) | 106,059 | $(130,320) | $1,775,274 |
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.
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, 2015 to April 30, 2016).
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.
| | Annualized Expense Ratio-A | Beginning
Account Value
November 1, 2015 | Ending
Account Value
April 30, 2016 | Expenses Paid
During Period-B
November 1, 2015
to April 30, 2016 |
| Class A | 1.25% | | | |
| Actual | | $1,000.00 | $993.20 | $6.19 |
| Hypothetical-C | | $1,000.00 | $1,018.65 | $6.27 |
| Class T | 1.50% | | | |
| Actual | | $1,000.00 | $992.00 | $7.43 |
| Hypothetical-C | | $1,000.00 | $1,017.40 | $7.52 |
| Class B | 2.00% | | | |
| Actual | | $1,000.00 | $989.40 | $9.89 |
| Hypothetical-C | | $1,000.00 | $1,014.92 | $10.02 |
| Class C | 2.00% | | | |
| Actual | | $1,000.00 | $989.40 | $9.89 |
| Hypothetical-C | | $1,000.00 | $1,014.92 | $10.02 |
| Class I | 1.00% | | | |
| Actual | | $1,000.00 | $994.70 | $4.96 |
| Hypothetical-C | | $1,000.00 | $1,019.89 | $5.02 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
C 5% return per year before expenses
AVLF-SANN-0616
1.800656.112
Fidelity Advisor® Emerging Markets Fund
Class Z
Semi-Annual Report April 30, 2016 |
|
Contents
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.
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A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
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Investment Summary (Unaudited)
Top Five Stocks as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 3.6 | 3.4 |
| Tencent Holdings Ltd. (Cayman Islands, Internet Software & Services) | 3.5 | 3.3 |
| Naspers Ltd. Class N (South Africa, Media) | 2.0 | 2.2 |
| Alibaba Group Holding Ltd. sponsored ADR (Cayman Islands, Internet Software & Services) | 1.6 | 0.7 |
| Infosys Ltd. (India, IT Services) | 1.4 | 0.0 |
| | 12.1 | |
Top Five Market Sectors as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Information Technology | 21.8 | 23.4 |
| Financials | 18.4 | 19.8 |
| Consumer Discretionary | 14.3 | 18.3 |
| Consumer Staples | 13.8 | 8.8 |
| Industrials | 9.9 | 11.2 |
Top Five Countries as of April 30, 2016
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| India | 13.4 | 10.6 |
| United States of America | 10.2 | 8.4 |
| Cayman Islands | 9.5 | 7.7 |
| Mexico | 8.6 | 6.8 |
| Brazil | 8.3 | 6.4 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2016 |
| | Stocks | 99.1% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 0.9% |
| As of October 31, 2015 |
| | Stocks | 99.9% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 0.1% |
Investments April 30, 2016 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 95.5% | | | |
| | | Shares | Value |
| Argentina - 0.9% | | | |
| Banco Macro SA sponsored ADR | | 31,700 | $1,985,371 |
| Grupo Financiero Galicia SA sponsored ADR | | 70,700 | 2,012,829 |
|
| TOTAL ARGENTINA | | | 3,998,200 |
|
| Australia - 1.0% | | | |
| Amcor Ltd. (a) | | 188,319 | 2,205,101 |
| Sydney Airport unit | | 401,832 | 2,080,679 |
|
| TOTAL AUSTRALIA | | | 4,285,780 |
|
| Belgium - 0.5% | | | |
| Anheuser-Busch InBev SA NV | | 15,700 | 1,943,345 |
| Bermuda - 2.8% | | | |
| Axalta Coating Systems (a) | | 67,800 | 1,930,266 |
| China Gas Holdings Ltd. | | 1,659,000 | 2,395,155 |
| China Resource Gas Group Ltd. | | 844,000 | 2,388,385 |
| Credicorp Ltd. (United States) | | 23,714 | 3,448,490 |
| Markit Ltd. (a) | | 48,000 | 1,674,720 |
|
| TOTAL BERMUDA | | | 11,837,016 |
|
| Brazil - 4.7% | | | |
| BB Seguridade Participacoes SA | | 330,700 | 2,884,641 |
| Cielo SA | | 354,886 | 3,456,766 |
| Kroton Educacional SA | | 835,000 | 3,107,654 |
| Qualicorp SA | | 536,900 | 2,326,033 |
| Smiles SA | | 180,500 | 2,094,047 |
| Ultrapar Participacoes SA | | 152,100 | 3,202,757 |
| Weg SA | | 606,930 | 2,678,839 |
|
| TOTAL BRAZIL | | | 19,750,737 |
|
| British Virgin Islands - 0.4% | | | |
| Mail.Ru Group Ltd. GDR (Reg. S) (a) | | 88,800 | 1,798,200 |
| Cayman Islands - 9.5% | | | |
| Alibaba Group Holding Ltd. sponsored ADR (a) | | 88,900 | 6,839,966 |
| Baidu.com, Inc. sponsored ADR (a) | | 28,400 | 5,518,120 |
| ENN Energy Holdings Ltd. | | 370,000 | 1,804,727 |
| Fu Shou Yuan International Group Ltd. | | 2,877,000 | 2,018,479 |
| New Oriental Education & Technology Group, Inc. sponsored ADR | | 60,200 | 2,357,432 |
| Shenzhou International Group Holdings Ltd. | | 469,000 | 2,424,508 |
| Sino Biopharmaceutical Ltd. | | 3,055,000 | 2,164,786 |
| TAL Education Group ADR (a) | | 36,900 | 2,135,034 |
| Tencent Holdings Ltd. | | 715,200 | 14,553,115 |
|
| TOTAL CAYMAN ISLANDS | | | 39,816,167 |
|
| China - 2.7% | | | |
| China Pacific Insurance (Group) Co. Ltd. (H Shares) | | 778,200 | 2,728,716 |
| Inner Mongoli Yili Industries Co. Ltd. | | 824,200 | 1,913,443 |
| Jiangsu Hengrui Medicine Co. Ltd. | | 276,860 | 1,996,250 |
| Kweichow Moutai Co. Ltd. | | 68,010 | 2,638,860 |
| Shanghai International Airport Co. Ltd. | | 475,700 | 1,999,335 |
|
| TOTAL CHINA | | | 11,276,604 |
|
| Denmark - 0.5% | | | |
| Novo Nordisk A/S Series B sponsored ADR | | 36,300 | 2,025,177 |
| France - 0.5% | | | |
| Dassault Systemes SA | | 26,753 | 2,092,270 |
| Germany - 1.0% | | | |
| adidas AG | | 16,300 | 2,101,602 |
| Wirecard AG (b) | | 51,700 | 2,232,693 |
|
| TOTAL GERMANY | | | 4,334,295 |
|
| Hong Kong - 1.7% | | | |
| AIA Group Ltd. | | 384,000 | 2,298,089 |
| Guangdong Investment Ltd. | | 1,972,000 | 2,784,585 |
| Techtronic Industries Co. Ltd. | | 559,500 | 2,097,381 |
|
| TOTAL HONG KONG | | | 7,180,055 |
|
| India - 13.4% | | | |
| Adani Ports & Special Economic Zone | | 774,193 | 2,776,235 |
| Amara Raja Batteries Ltd. | | 146,862 | 2,113,316 |
| Asian Paints India Ltd. | | 195,275 | 2,546,567 |
| Bharti Infratel Ltd. | | 387,693 | 2,188,399 |
| Colgate-Palmolive (India) | | 170,747 | 2,161,408 |
| GlaxoSmithKline Consumer Healthcare Ltd. (a) | | 25,178 | 2,235,433 |
| HCL Technologies Ltd. | | 229,109 | 2,587,869 |
| HDFC Bank Ltd. (a) | | 108,338 | 2,202,169 |
| Hindustan Unilever Ltd. | | 234,061 | 3,058,186 |
| Housing Development Finance Corp. Ltd. | | 292,221 | 4,788,341 |
| IndusInd Bank Ltd. | | 139,823 | 2,207,787 |
| Infosys Ltd. | | 315,118 | 5,724,328 |
| ITC Ltd. | | 693,666 | 3,393,377 |
| LIC Housing Finance Ltd. (a) | | 312,300 | 2,173,507 |
| Lupin Ltd. | | 94,777 | 2,293,251 |
| Maruti Suzuki India Ltd. (a) | | 47,987 | 2,741,325 |
| Power Grid Corp. of India Ltd. | | 955,059 | 2,061,790 |
| Sun Pharmaceutical Industries Ltd. | | 258,261 | 3,154,318 |
| Tata Consultancy Services Ltd. | | 111,953 | 4,273,311 |
| Titan Co. Ltd. | | 342,580 | 1,835,503 |
|
| TOTAL INDIA | | | 56,516,420 |
|
| Indonesia - 3.9% | | | |
| PT ACE Hardware Indonesia Tbk | | 28,972,600 | 2,032,124 |
| PT Bank Central Asia Tbk | | 3,158,700 | 3,125,647 |
| PT Bank Rakyat Indonesia Tbk | | 3,379,800 | 2,652,482 |
| PT Kalbe Farma Tbk | | 19,843,000 | 2,068,860 |
| PT Matahari Department Store Tbk | | 1,663,000 | 2,395,890 |
| PT Surya Citra Media Tbk | | 9,326,700 | 2,263,076 |
| PT Tower Bersama Infrastructure Tbk (a) | | 3,761,900 | 1,690,117 |
|
| TOTAL INDONESIA | | | 16,228,196 |
|
| Isle of Man - 0.4% | | | |
| Playtech Ltd. | | 136,389 | 1,603,246 |
| Israel - 1.4% | | | |
| Check Point Software Technologies Ltd. (a) | | 24,000 | 1,988,880 |
| Frutarom Industries Ltd. | | 41,000 | 2,101,326 |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | | 33,900 | 1,845,855 |
|
| TOTAL ISRAEL | | | 5,936,061 |
|
| Kenya - 0.5% | | | |
| Safaricom Ltd. | | 12,322,800 | 2,086,335 |
| Korea (South) - 5.5% | | | |
| AMOREPACIFIC Corp. | | 10,203 | 3,629,059 |
| AMOREPACIFIC Group, Inc. | | 18,712 | 2,743,899 |
| Coway Co. Ltd. | | 27,100 | 2,332,302 |
| KT&G Corp. | | 33,089 | 3,552,445 |
| LG Chemical Ltd. | | 12,680 | 3,287,110 |
| LG Household & Health Care Ltd. | | 3,686 | 3,239,839 |
| NAVER Corp. | | 7,273 | 4,297,747 |
|
| TOTAL KOREA (SOUTH) | | | 23,082,401 |
|
| Luxembourg - 0.5% | | | |
| Eurofins Scientific SA | | 5,700 | 2,115,005 |
| Mexico - 8.6% | | | |
| Banregio Grupo Financiero S.A.B. de CV | | 365,566 | 2,190,678 |
| El Puerto de Liverpool S.A.B. de CV Class C | | 185,100 | 2,104,083 |
| Fomento Economico Mexicano S.A.B. de CV unit | | 419,900 | 3,906,943 |
| Gruma S.A.B. de CV Series B | | 156,100 | 2,280,349 |
| Grupo Aeroportuario del Pacifico S.A.B. de CV Series B | | 266,721 | 2,513,011 |
| Grupo Aeroportuario del Sureste S.A.B. de CV Series B | | 166,495 | 2,556,846 |
| Grupo Aeroportuario Norte S.A.B. de CV | | 386,000 | 2,233,708 |
| Grupo Financiero Banorte S.A.B. de CV Series O | | 633,900 | 3,598,621 |
| Grupo GICSA SA de CV (a) | | 1,802,428 | 1,416,409 |
| Infraestructura Energetica Nova S.A.B. de CV (b) | | 501,400 | 1,959,303 |
| Kimberly-Clark de Mexico SA de CV Series A | | 1,025,200 | 2,426,445 |
| Megacable Holdings S.A.B. de CV unit | | 494,884 | 2,285,343 |
| Promotora y Operadora de Infraestructura S.A.B. de CV | | 163,300 | 2,070,977 |
| Tenedora Nemak SA de CV | | 1,415,300 | 2,030,242 |
| Wal-Mart de Mexico SA de CV Series V | | 991,100 | 2,451,157 |
|
| TOTAL MEXICO | | | 36,024,115 |
|
| Philippines - 3.9% | | | |
| Ayala Corp. | | 158,850 | 2,603,877 |
| Ayala Land, Inc. | | 3,524,600 | 2,596,522 |
| D&L Industries, Inc. | | 9,851,700 | 1,885,092 |
| GT Capital Holdings, Inc. | | 76,880 | 2,234,399 |
| International Container Terminal Services, Inc. | | 1,461,520 | 2,019,747 |
| SM Investments Corp. | | 121,046 | 2,429,413 |
| SM Prime Holdings, Inc. | | 5,142,900 | 2,476,596 |
|
| TOTAL PHILIPPINES | | | 16,245,646 |
|
| Russia - 1.4% | | | |
| Magnit OJSC (a) | | 19,889 | 2,764,148 |
| NOVATEK OAO GDR (Reg. S) | | 32,100 | 3,081,600 |
|
| TOTAL RUSSIA | | | 5,845,748 |
|
| South Africa - 6.8% | | | |
| Aspen Pharmacare Holdings Ltd. | | 141,193 | 3,327,474 |
| Bidvest Group Ltd. | | 118,915 | 3,017,974 |
| Discovery Ltd. | | 289,962 | 2,591,382 |
| FirstRand Ltd. | | 993,300 | 3,192,320 |
| Mondi Ltd. | | 125,520 | 2,411,423 |
| Mr Price Group Ltd. | | 202,500 | 2,572,352 |
| Naspers Ltd. Class N | | 60,900 | 8,356,095 |
| Sanlam Ltd. | | 641,100 | 3,107,490 |
|
| TOTAL SOUTH AFRICA | | | 28,576,510 |
|
| Spain - 0.5% | | | |
| Amadeus IT Holding SA Class A | | 46,900 | 2,134,151 |
| Switzerland - 0.5% | | | |
| Sika AG | | 500 | 2,128,114 |
| Taiwan - 5.3% | | | |
| Advantech Co. Ltd. | | 285,000 | 2,011,578 |
| ECLAT Textile Co. Ltd. | | 207,540 | 2,367,535 |
| Largan Precision Co. Ltd. | | 41,000 | 2,881,157 |
| Taiwan Semiconductor Manufacturing Co. Ltd. | | 3,326,000 | 15,257,222 |
|
| TOTAL TAIWAN | | | 22,517,492 |
|
| Thailand - 1.6% | | | |
| Airports of Thailand PCL (For. Reg.) | | 223,000 | 2,503,322 |
| Bangkok Dusit Medical Services PCL (For. Reg.) | | 3,186,000 | 2,171,443 |
| Thai Beverage PCL | | 3,651,100 | 2,022,582 |
|
| TOTAL THAILAND | | | 6,697,347 |
|
| Turkey - 2.2% | | | |
| Bim Birlesik Magazalar A/S JSC | | 107,000 | 2,355,683 |
| Koc Holding A/S | | 496,000 | 2,593,452 |
| Tofas Turk Otomobil Fabrikasi A/S | | 266,162 | 2,106,085 |
| Tupras Turkiye Petrol Rafinelleri A/S | | 86,000 | 2,269,871 |
|
| TOTAL TURKEY | | | 9,325,091 |
|
| United Arab Emirates - 0.6% | | | |
| DP World Ltd. | | 127,877 | 2,416,875 |
| United Kingdom - 2.1% | | | |
| British American Tobacco PLC (United Kingdom) | | 33,900 | 2,066,954 |
| Hikma Pharmaceuticals PLC | | 78,206 | 2,518,526 |
| NMC Health PLC | | 133,500 | 2,042,315 |
| Prudential PLC | | 107,531 | 2,122,612 |
|
| TOTAL UNITED KINGDOM | | | 8,750,407 |
|
| United States of America - 10.2% | | | |
| A.O. Smith Corp. | | 24,400 | 1,884,168 |
| Alphabet, Inc. Class C | | 2,460 | 1,704,805 |
| Amazon.com, Inc. (a) | | 3,400 | 2,242,606 |
| Amphenol Corp. Class A | | 32,100 | 1,792,143 |
| China Biologic Products, Inc. (a) | | 19,200 | 2,246,400 |
| Danaher Corp. | | 19,000 | 1,838,250 |
| Ecolab, Inc. | | 16,470 | 1,893,721 |
| Facebook, Inc. Class A (a) | | 15,800 | 1,857,764 |
| Gartner, Inc. Class A (a) | | 19,700 | 1,717,249 |
| International Flavors & Fragrances, Inc. | | 17,000 | 2,030,990 |
| MasterCard, Inc. Class A | | 20,000 | 1,939,800 |
| McGraw Hill Financial, Inc. | | 19,800 | 2,115,630 |
| MercadoLibre, Inc. | | 18,100 | 2,260,509 |
| Mettler-Toledo International, Inc. (a) | | 5,480 | 1,961,566 |
| Moody's Corp. | | 20,500 | 1,962,260 |
| MSCI, Inc. Class A | | 28,600 | 2,171,884 |
| NIKE, Inc. Class B | | 33,100 | 1,950,914 |
| Philip Morris International, Inc. | | 20,500 | 2,011,460 |
| PPG Industries, Inc. | | 17,300 | 1,909,747 |
| The Walt Disney Co. | | 17,500 | 1,807,050 |
| TransDigm Group, Inc. (a) | | 8,200 | 1,868,534 |
| Visa, Inc. Class A | | 23,800 | 1,838,312 |
|
| TOTAL UNITED STATES OF AMERICA | | | 43,005,762 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $376,006,621) | | | 401,572,768 |
|
| Nonconvertible Preferred Stocks - 3.6% | | | |
| Brazil - 3.6% | | | |
| Ambev SA sponsored ADR | | 883,280 | 4,937,535 |
| Banco Bradesco SA (PN) | | 668,360 | 5,033,226 |
| Itau Unibanco Holding SA | | 545,600 | 5,214,472 |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | | | |
| (Cost $16,080,286) | | | 15,185,233 |
|
| Money Market Funds - 1.9% | | | |
| Fidelity Cash Central Fund, 0.38%(c) | | 3,562,316 | 3,562,316 |
| Fidelity Securities Lending Cash Central Fund, 0.42%(c)(d) | | 4,137,230 | 4,137,230 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $7,699,546) | | | 7,699,546 |
| TOTAL INVESTMENT PORTFOLIO - 101.0% | | | |
| (Cost $399,786,453) | | | 424,457,547 |
| NET OTHER ASSETS (LIABILITIES) - (1.0)% | | | (4,078,849) |
| NET ASSETS - 100% | | | $420,378,698 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
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 | $7,105 |
| Fidelity Securities Lending Cash Central Fund | 39,758 |
| Total | $46,863 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2016, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Consumer Discretionary | $59,758,662 | $53,218,294 | $6,540,368 | $-- |
| Consumer Staples | 57,732,550 | 55,665,596 | 2,066,954 | -- |
| Energy | 8,554,228 | 8,554,228 | -- | -- |
| Financials | 78,811,167 | 69,459,581 | 9,351,586 | -- |
| Health Care | 34,257,259 | 32,092,473 | 2,164,786 | -- |
| Industrials | 41,594,681 | 41,594,681 | -- | -- |
| Information Technology | 92,361,201 | 56,826,536 | 35,534,665 | -- |
| Materials | 24,329,457 | 24,329,457 | -- | -- |
| Telecommunication Services | 5,964,851 | 5,964,851 | -- | -- |
| Utilities | 13,393,945 | 4,021,093 | 9,372,852 | -- |
| Money Market Funds | 7,699,546 | 7,699,546 | -- | -- |
| Total Investments in Securities: | $424,457,547 | $359,426,336 | $65,031,211 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2016. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
| Transfers | Total |
| Level 1 to Level 2 | $0 |
| Level 2 to Level 1 | $87,051,717 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | April 30, 2016 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $3,926,029) — See accompanying schedule:
Unaffiliated issuers (cost $392,086,907) | $416,758,001 | |
| Fidelity Central Funds (cost $7,699,546) | 7,699,546 | |
| Total Investments (cost $399,786,453) | | $424,457,547 |
| Foreign currency held at value (cost $34,009) | | 33,997 |
| Receivable for investments sold | | 55,455 |
| Receivable for fund shares sold | | 175,963 |
| Dividends receivable | | 580,450 |
| Distributions receivable from Fidelity Central Funds | | 22,330 |
| Prepaid expenses | | 332 |
| Other receivables | | 37,211 |
| Total assets | | 425,363,285 |
| Liabilities | | |
| Payable for fund shares redeemed | $281,733 | |
| Accrued management fee | 278,585 | |
| Distribution and service plan fees payable | 77,644 | |
| Other affiliated payables | 100,234 | |
| Other payables and accrued expenses | 109,161 | |
| Collateral on securities loaned, at value | 4,137,230 | |
| Total liabilities | | 4,984,587 |
| Net Assets | | $420,378,698 |
| Net Assets consist of: | | |
| Paid in capital | | $471,248,235 |
| Accumulated net investment loss | | (689,376) |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (74,848,712) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 24,668,551 |
| Net Assets | | $420,378,698 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($108,847,107 ÷ 5,253,777 shares) | | $20.72 |
| Maximum offering price per share (100/94.25 of $20.72) | | $21.98 |
| Class T: | | |
| Net Asset Value and redemption price per share ($41,531,229 ÷ 2,014,762 shares) | | $20.61 |
| Maximum offering price per share (100/96.50 of $20.61) | | $21.36 |
| Class B: | | |
| Net Asset Value and offering price per share ($2,231,936 ÷ 111,705 shares)(a) | | $19.98 |
| Class C: | | |
| Net Asset Value and offering price per share ($43,003,870 ÷ 2,157,222 shares)(a) | | $19.93 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($218,790,320 ÷ 10,510,785 shares) | | $20.82 |
| Class Z: | | |
| Net Asset Value, offering price and redemption price per share ($5,974,236 ÷ 287,219 shares) | | $20.80 |
(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.
Statement of Operations
| | | Six months ended April 30, 2016 (Unaudited) |
| Investment Income | | |
| Dividends | | $2,484,183 |
| Income from Fidelity Central Funds | | 46,863 |
| Income before foreign taxes withheld | | 2,531,046 |
| Less foreign taxes withheld | | (277,827) |
| Total income | | 2,253,219 |
| Expenses | | |
| Management fee | $1,586,202 | |
| Transfer agent fees | 497,496 | |
| Distribution and service plan fees | 457,367 | |
| Accounting and security lending fees | 103,436 | |
| Custodian fees and expenses | 146,396 | |
| Independent trustees' compensation | 865 | |
| Registration fees | 61,031 | |
| Audit | 59,131 | |
| Legal | 535 | |
| Miscellaneous | 1,355 | |
| Total expenses before reductions | 2,913,814 | |
| Expense reductions | (5,648) | 2,908,166 |
| Net investment income (loss) | | (654,947) |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (13,726,251) | |
| Foreign currency transactions | (10,068) | |
| Total net realized gain (loss) | | (13,736,319) |
Change in net unrealized appreciation (depreciation) on:
Investment securities (net of decrease in deferred foreign taxes of $141,583) | 13,720,840 | |
| Assets and liabilities in foreign currencies | 11,688 | |
| Total change in net unrealized appreciation (depreciation) | | 13,732,528 |
| Net gain (loss) | | (3,791) |
| Net increase (decrease) in net assets resulting from operations | | $(658,738) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended April 30, 2016 (Unaudited) | Year ended October 31, 2015 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $(654,947) | $1,401,023 |
| Net realized gain (loss) | (13,736,319) | (12,422,672) |
| Change in net unrealized appreciation (depreciation) | 13,732,528 | (41,643,776) |
| Net increase (decrease) in net assets resulting from operations | (658,738) | (52,665,425) |
| Distributions to shareholders from net investment income | (397,152) | (1,046,601) |
| Distributions to shareholders from net realized gain | – | (487,287) |
| Total distributions | (397,152) | (1,533,888) |
| Share transactions - net increase (decrease) | (137,433) | 3,501,123 |
| Redemption fees | 41,238 | 73,251 |
| Total increase (decrease) in net assets | (1,152,085) | (50,624,939) |
| Net Assets | | |
| Beginning of period | 421,530,783 | 472,155,722 |
| End of period (including accumulated net investment loss of $689,376 and undistributed net investment income of $362,723, respectively) | $420,378,698 | $421,530,783 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Markets Fund Class A
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| April 30, | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.73 | $23.38 | $22.62 | $20.51 | $20.50 | $23.71 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.04) | .06 | .06 | .08 | .22 | .21 |
| Net realized and unrealized gain (loss) | .03 | (2.66) | .76 | 2.23 | (.06) | (3.19) |
| Total from investment operations | (.01) | (2.60) | .82 | 2.31 | .16 | (2.98) |
| Distributions from net investment income | – | (.02) | (.05) | (.20) | (.15) | (.11) |
| Distributions from net realized gain | – | (.03) | (.01) | – | – | (.13) |
| Total distributions | – | (.05) | (.06) | (.20) | (.15) | (.24) |
| Redemption fees added to paid in capitalA | –B | –B | –B | –B | –B | .01 |
| Net asset value, end of period | $20.72 | $20.73 | $23.38 | $22.62 | $20.51 | $20.50 |
| Total ReturnC,D,E | (.05)% | (11.13)% | 3.65% | 11.34% | .80% | (12.69)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 1.54%H | 1.52% | 1.52% | 1.56% | 1.54% | 1.54% |
| Expenses net of fee waivers, if any | 1.54%H | 1.52% | 1.52% | 1.55% | 1.54% | 1.54% |
| Expenses net of all reductions | 1.54%H | 1.50% | 1.52% | 1.50% | 1.48% | 1.47% |
| Net investment income (loss) | (.40)%H | .28% | .26% | .38% | 1.07% | .92% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $108,847 | $112,931 | $141,601 | $146,378 | $160,464 | $202,477 |
| Portfolio turnover rateI | 91%H | 110% | 97% | 121% | 177% | 122% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Markets Fund Class T
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| April 30, | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.65 | $23.30 | $22.55 | $20.44 | $20.43 | $23.61 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.07) | .01 | –B | .03 | .16 | .15 |
| Net realized and unrealized gain (loss) | .03 | (2.66) | .76 | 2.22 | (.06) | (3.18) |
| Total from investment operations | (.04) | (2.65) | .76 | 2.25 | .10 | (3.03) |
| Distributions from net investment income | – | – | –B | (.14) | (.09) | (.04) |
| Distributions from net realized gain | – | – | (.01) | – | – | (.13) |
| Total distributions | – | – | (.01) | (.14) | (.09) | (.16)C |
| Redemption fees added to paid in capitalA | –B | –B | –B | –B | –B | .01 |
| Net asset value, end of period | $20.61 | $20.65 | $23.30 | $22.55 | $20.44 | $20.43 |
| Total ReturnD,E,F | (.19)% | (11.37)% | 3.39% | 11.06% | .49% | (12.89)% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 1.80%I | 1.78% | 1.78% | 1.81% | 1.80% | 1.79% |
| Expenses net of fee waivers, if any | 1.80%I | 1.78% | 1.78% | 1.81% | 1.80% | 1.79% |
| Expenses net of all reductions | 1.80%I | 1.76% | 1.78% | 1.76% | 1.73% | 1.73% |
| Net investment income (loss) | (.66)%I | .02% | - %J | .13% | .81% | .66% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $41,531 | $43,365 | $54,341 | $55,797 | $58,919 | $73,146 |
| Portfolio turnover rateK | 91%I | 110% | 97% | 121% | 177% | 122% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C 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.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 Annualized
J Amount represents less than .005%.
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Markets Fund Class B
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| April 30, | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.07 | $22.75 | $22.11 | $20.03 | $20.03 | $23.14 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.11) | (.10) | (.11) | (.08) | .06 | .04 |
| Net realized and unrealized gain (loss) | .02 | (2.58) | .75 | 2.18 | (.06) | (3.13) |
| Total from investment operations | (.09) | (2.68) | .64 | 2.10 | – | (3.09) |
| Distributions from net investment income | – | – | – | (.02) | – | (.01) |
| Distributions from net realized gain | – | – | – | – | – | (.03) |
| Total distributions | – | – | – | (.02) | – | (.03)B |
| Redemption fees added to paid in capitalA | –C | –C | –C | –C | –C | .01 |
| Net asset value, end of period | $19.98 | $20.07 | $22.75 | $22.11 | $20.03 | $20.03 |
| Total ReturnD,E,F | (.45)% | (11.78)% | 2.89% | 10.50% | -% | (13.33)% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 2.29%I | 2.28% | 2.28% | 2.31% | 2.29% | 2.29% |
| Expenses net of fee waivers, if any | 2.29%I | 2.28% | 2.28% | 2.31% | 2.29% | 2.29% |
| Expenses net of all reductions | 2.29%I | 2.26% | 2.28% | 2.26% | 2.23% | 2.22% |
| Net investment income (loss) | (1.15)%I | (.48)% | (.49)% | (.37)% | .32% | .16% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $2,232 | $3,255 | $7,546 | $11,391 | $15,994 | $21,304 |
| Portfolio turnover rateJ | 91%I | 110% | 97% | 121% | 177% | 122% |
A Calculated based on average shares outstanding during the period.
B 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.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Markets Fund Class C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| April 30, | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.02 | $22.70 | $22.06 | $20.00 | $20.00 | $23.13 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.11) | (.10) | (.11) | (.08) | .06 | .04 |
| Net realized and unrealized gain (loss) | .02 | (2.58) | .75 | 2.18 | (.06) | (3.12) |
| Total from investment operations | (.09) | (2.68) | .64 | 2.10 | – | (3.08) |
| Distributions from net investment income | – | – | – | (.04) | – | (.01) |
| Distributions from net realized gain | – | – | – | – | – | (.05) |
| Total distributions | – | – | – | (.04) | – | (.06) |
| Redemption fees added to paid in capitalA | –B | –B | –B | –B | –B | .01 |
| Net asset value, end of period | $19.93 | $20.02 | $22.70 | $22.06 | $20.00 | $20.00 |
| Total ReturnC,D,E | (.45)% | (11.81)% | 2.90% | 10.49% | -% | (13.33)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 2.29%H | 2.27% | 2.27% | 2.31% | 2.29% | 2.28% |
| Expenses net of fee waivers, if any | 2.29%H | 2.27% | 2.27% | 2.30% | 2.29% | 2.28% |
| Expenses net of all reductions | 2.29%H | 2.26% | 2.27% | 2.25% | 2.23% | 2.22% |
| Net investment income (loss) | (1.15)%H | (.47)% | (.49)% | (.37)% | .32% | .17% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $43,004 | $46,595 | $64,026 | $62,532 | $65,598 | $80,855 |
| Portfolio turnover rateI | 91%H | 110% | 97% | 121% | 177% | 122% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Markets Fund Class I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| April 30, | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.83 | $23.50 | $22.73 | $20.61 | $20.63 | $23.87 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.01) | .14 | .14 | .15 | .28 | .29 |
| Net realized and unrealized gain (loss) | .04 | (2.67) | .76 | 2.25 | (.06) | (3.21) |
| Total from investment operations | .03 | (2.53) | .90 | 2.40 | .22 | (2.92) |
| Distributions from net investment income | (.04) | (.11) | (.12) | (.28) | (.24) | (.20) |
| Distributions from net realized gain | – | (.03) | (.01) | – | – | (.13) |
| Total distributions | (.04) | (.14) | (.13) | (.28) | (.24) | (.33) |
| Redemption fees added to paid in capitalA | –B | –B | –B | –B | –B | .01 |
| Net asset value, end of period | $20.82 | $20.83 | $23.50 | $22.73 | $20.61 | $20.63 |
| Total ReturnC,D | .14% | (10.83)% | 4.00% | 11.73% | 1.08% | (12.41)% |
| Ratios to Average Net AssetsE,F | | | | | | |
| Expenses before reductions | 1.19%G | 1.17% | 1.18% | 1.23% | 1.22% | 1.21% |
| Expenses net of fee waivers, if any | 1.19%G | 1.17% | 1.18% | 1.22% | 1.22% | 1.21% |
| Expenses net of all reductions | 1.19%G | 1.16% | 1.18% | 1.18% | 1.16% | 1.14% |
| Net investment income (loss) | (.05)%G | .63% | .60% | .71% | 1.39% | 1.25% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $218,790 | $209,270 | $199,098 | $150,576 | $145,782 | $138,312 |
| Portfolio turnover rateH | 91%G | 110% | 97% | 121% | 177% | 122% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Markets Fund Class Z
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | |
| April 30, | 2016 | 2015 | 2014 | 2013 A |
| Selected Per–Share Data | | | | |
| Net asset value, beginning of period | $20.83 | $23.50 | $22.73 | $21.33 |
| Income from Investment Operations | | | | |
| Net investment income (loss)B | .01 | .17 | .18 | .03 |
| Net realized and unrealized gain (loss) | .03 | (2.66) | .76 | 1.37 |
| Total from investment operations | .04 | (2.49) | .94 | 1.40 |
| Distributions from net investment income | (.07) | (.14) | (.16) | – |
| Distributions from net realized gain | – | (.03) | (.01) | – |
| Total distributions | (.07) | (.18)C | (.17) | – |
| Redemption fees added to paid in capitalB,D | – | – | – | – |
| Net asset value, end of period | $20.80 | $20.83 | $23.50 | $22.73 |
| Total ReturnE,F | .19% | (10.68)% | 4.19% | 6.56% |
| Ratios to Average Net AssetsG,H | | | | |
| Expenses before reductions | 1.03%I | 1.02% | 1.02% | 1.05%I |
| Expenses net of fee waivers, if any | 1.03%I | 1.02% | 1.02% | 1.05%I |
| Expenses net of all reductions | 1.03%I | 1.00% | 1.02% | 1.00%I |
| Net investment income (loss) | .10%I | .78% | .77% | .62%I |
| Supplemental Data | | | | |
| Net assets, end of period (000 omitted) | $5,974 | $6,114 | $5,544 | $107 |
| Portfolio turnover rateJ | 91%I | 110% | 97% | 121% |
A For the period August 13, 2013 (commencement of sale of shares) to October 31, 2013.
B Calculated based on average shares outstanding during the period.
C Total distributions of $.18 per share is comprised of distributions from net investment income of $.143 and distributions from net realized gain of $.033 per share.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2016
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, Class I and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a maximum holding period of seven years from the initial date of purchase. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective on or about July 1, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of April 30, 2016, including information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), 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 | $46,138,355 |
| Gross unrealized depreciation | (23,211,711) |
| Net unrealized appreciation (depreciation) on securities | $22,926,644 |
| Tax cost | $401,530,903 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2017 | $(47,911,843) |
| Total with expiration | $(47,911,843) |
| No expiration | |
| Short-term | $(12,456,052) |
| Total no expiration | $(12,456,052) |
| Total capital loss carryforward | $(60,367,895) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.50% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $181,903,642 and $184,169,805, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .55% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .80% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares, except for the Class I. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
| Class A | -% | .25% | $131,354 | $222 |
| Class T | .25% | .25% | 100,958 | – |
| Class B | .75% | .25% | 12,991 | 9,743 |
| Class C | .75% | .25% | 212,064 | 16,361 |
| | | | $457,367 | $26,326 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $16,692 |
| Class T | 4,608 |
| Class B(a) | 1,041 |
| Class C(a) | 2,066 |
| | $24,407 |
(a) When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| | Amount | % of
Class-Level Average
Net Assets(a) |
| Class A | $159,384 | .30 |
| Class T | 63,712 | .32 |
| Class B | 3,939 | .30 |
| Class C | 64,561 | .30 |
| Class I | 204,569 | .20 |
| Class Z | 1,331 | .05 |
| | $497,496 | |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $695 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $348 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $39,758, including $525 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $4,176 for the period.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $22.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $1,450.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| From net investment income | | |
| Class A | $– | $115,150 |
| Class I | 377,257 | 898,042 |
| Class Z | 19,895 | 33,409 |
| Total | $397,152 | $1,046,601 |
| From net realized gain | | |
| Class A | $– | $199,998 |
| Class I | – | 279,579 |
| Class Z | – | 7,710 |
| Total | $– | $487,287 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| Class A | | | | |
| Shares sold | 649,337 | 1,093,525 | $12,767,711 | $24,402,020 |
| Reinvestment of distributions | – | 13,163 | – | 302,357 |
| Shares redeemed | (842,924) | (1,715,077) | (16,542,384) | (37,830,400) |
| Net increase (decrease) | (193,587) | (608,389) | $(3,774,673) | $(13,126,023) |
| Class T | | | | |
| Shares sold | 182,219 | 305,389 | $3,546,032 | $6,786,919 |
| Shares redeemed | (267,048) | (537,767) | (5,159,406) | (11,710,693) |
| Net increase (decrease) | (84,829) | (232,378) | $(1,613,374) | $(4,923,774) |
| Class B | | | | |
| Shares sold | 1,396 | 2,482 | $25,071 | $54,329 |
| Shares redeemed | (51,892) | (171,894) | (985,523) | (3,727,701) |
| Net increase (decrease) | (50,496) | (169,412) | $(960,452) | $(3,673,372) |
| Class C | | | | |
| Shares sold | 131,744 | 365,122 | $2,512,301 | $7,912,445 |
| Shares redeemed | (301,615) | (858,213) | (5,692,128) | (18,293,083) |
| Net increase (decrease) | (169,871) | (493,091) | $(3,179,827) | $(10,380,638) |
| Class I | | | | |
| Shares sold | 1,061,826 | 3,524,595 | $21,307,705 | $77,404,353 |
| Reinvestment of distributions | 17,692 | 49,091 | 362,855 | 1,129,581 |
| Shares redeemed | (614,601) | (1,999,205) | (12,159,604) | (44,250,238) |
| Net increase (decrease) | 464,917 | 1,574,481 | $9,510,956 | $34,283,696 |
| Class Z | | | | |
| Shares sold | 21,209 | 119,541 | $423,468 | $2,670,833 |
| Reinvestment of distributions | 971 | 1,789 | 19,895 | 41,119 |
| Shares redeemed | (28,451) | (63,727) | (563,426) | (1,390,718) |
| Net increase (decrease) | (6,271) | 57,603 | $(120,063) | $1,321,234 |
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.
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, 2015 to April 30, 2016).
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.
| | Annualized Expense Ratio-A | Beginning
Account Value
November 1, 2015 | Ending
Account Value
April 30, 2016 | Expenses Paid
During Period-B
November 1, 2015
to April 30, 2016 |
| Class A | 1.54% | | | |
| Actual | | $1,000.00 | $999.50 | $7.66 |
| Hypothetical-C | | $1,000.00 | $1,017.21 | $7.72 |
| Class T | 1.80% | | | |
| Actual | | $1,000.00 | $998.10 | $8.94 |
| Hypothetical-C | | $1,000.00 | $1,015.91 | $9.02 |
| Class B | 2.29% | | | |
| Actual | | $1,000.00 | $995.50 | $11.36 |
| Hypothetical-C | | $1,000.00 | $1,013.48 | $11.46 |
| Class C | 2.29% | | | |
| Actual | | $1,000.00 | $995.50 | $11.36 |
| Hypothetical-C | | $1,000.00 | $1,013.48 | $11.46 |
| Class I | 1.19% | | | |
| Actual | | $1,000.00 | $1,001.40 | $5.92 |
| Hypothetical-C | | $1,000.00 | $1,018.95 | $5.97 |
| Class Z | 1.03% | | | |
| Actual | | $1,000.00 | $1,001.90 | $5.13 |
| Hypothetical-C | | $1,000.00 | $1,019.74 | $5.17 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
C 5% return per year before expenses
FAEMZ-SANN-0616
1.9585024.102
Fidelity Advisor® Overseas Fund
Class I
Semi-Annual Report April 30, 2016 |
|
Contents
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. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Five Stocks as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Nestle SA (Switzerland, Food Products) | 2.6 | 2.4 |
| Novo Nordisk A/S Series B (Denmark, Pharmaceuticals) | 2.1 | 1.9 |
| Sanofi SA (France, Pharmaceuticals) | 1.7 | 2.0 |
| Howden Joinery Group PLC (United Kingdom, Specialty Retail) | 1.7 | 1.8 |
| NEXT Co. Ltd. (Japan, Media) | 1.7 | 1.0 |
| | 9.8 | |
Top Five Market Sectors as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Consumer Discretionary | 27.1 | 29.7 |
| Information Technology | 17.2 | 12.9 |
| Financials | 14.2 | 16.5 |
| Health Care | 12.9 | 13.4 |
| Consumer Staples | 10.4 | 10.4 |
Top Five Countries as of April 30, 2016
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| Japan | 20.8 | 17.9 |
| United Kingdom | 18.4 | 22.9 |
| United States of America | 10.8 | 9.5 |
| France | 9.5 | 9.2 |
| Germany | 6.5 | 4.2 |
Percentages are adjusted for the effect of futures contracts, if applicable.
Asset Allocation (% of fund's net assets)
| As of April 30, 2016 |
| | Stocks | 99.3% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 0.7% |
| As of October 31, 2015 |
| | Stocks | 99.4% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 0.6% |
Investments April 30, 2016 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 98.3% | | | |
| | | Shares | Value (000s) |
| Australia - 1.7% | | | |
| AMP Ltd. | | 186,173 | $832 |
| BHP Billiton Ltd. | | 146,394 | 2,286 |
| Carsales.com Ltd. | | 597,678 | 5,344 |
| McMillan Shakespeare Ltd. | | 285,153 | 2,663 |
|
| TOTAL AUSTRALIA | | | 11,125 |
|
| Austria - 0.9% | | | |
| Wienerberger AG | | 304,300 | 6,012 |
| Bailiwick of Jersey - 2.3% | | | |
| Integrated Diagnostics Holdings PLC | | 95,400 | 444 |
| Shire PLC | | 66,000 | 4,119 |
| Wolseley PLC | | 196,467 | 11,005 |
|
| TOTAL BAILIWICK OF JERSEY | | | 15,568 |
|
| Belgium - 0.8% | | | |
| Ageas | | 35,290 | 1,384 |
| KBC Groep NV | | 36,411 | 2,044 |
| UCB SA | | 21,700 | 1,624 |
|
| TOTAL BELGIUM | | | 5,052 |
|
| Bermuda - 0.4% | | | |
| Oriental Watch Holdings Ltd. | | 2,992,000 | 362 |
| Signet Jewelers Ltd. | | 18,600 | 2,019 |
|
| TOTAL BERMUDA | | | 2,381 |
|
| Canada - 0.5% | | | |
| Entertainment One Ltd. | | 1,174,777 | 3,176 |
| Cayman Islands - 3.2% | | | |
| 58.com, Inc. ADR (a) | | 67,600 | 3,694 |
| Alibaba Group Holding Ltd. sponsored ADR (a) | | 79,400 | 6,109 |
| Autohome, Inc. ADR Class A (a) | | 37,000 | 1,094 |
| Bitauto Holdings Ltd. ADR (a) | | 18,300 | 457 |
| Fu Shou Yuan International Group Ltd. | | 1,020,000 | 716 |
| Goodbaby International Holdings Ltd. (a) | | 973,000 | 545 |
| New Oriental Education & Technology Group, Inc. sponsored ADR | | 43,900 | 1,719 |
| Tencent Holdings Ltd. | | 344,800 | 7,016 |
|
| TOTAL CAYMAN ISLANDS | | | 21,350 |
|
| China - 0.3% | | | |
| TravelSky Technology Ltd. (H Shares) | | 925,000 | 1,719 |
| Denmark - 2.6% | | | |
| Danske Bank A/S | | 74,564 | 2,109 |
| Novo Nordisk A/S: | | | |
| Series B | | 18,115 | 1,011 |
| Series B sponsored ADR (b) | | 229,400 | 12,798 |
| Scandinavian Tobacco Group A/S | | 62,255 | 990 |
|
| TOTAL DENMARK | | | 16,908 |
|
| France - 9.5% | | | |
| AXA SA | | 49,558 | 1,251 |
| AXA SA sponsored ADR | | 59,100 | 1,496 |
| BNP Paribas SA | | 79,616 | 4,215 |
| Compagnie de St. Gobain | | 126,500 | 5,793 |
| Havas SA | | 826,400 | 6,915 |
| Iliad SA | | 4,606 | 1,007 |
| Ipsen SA | | 42,800 | 2,590 |
| Orange SA | | 187,300 | 3,112 |
| Pernod Ricard SA | | 45,300 | 4,890 |
| Safran SA | | 25,600 | 1,764 |
| Sanofi SA | | 107,373 | 8,850 |
| Sanofi SA sponsored ADR | | 62,100 | 2,552 |
| Societe Generale Series A | | 49,362 | 1,942 |
| Total SA | | 153,455 | 7,756 |
| Ubisoft Entertainment SA (a) | | 93,324 | 2,711 |
| Vivendi SA (b) | | 290,500 | 5,581 |
|
| TOTAL FRANCE | | | 62,425 |
|
| Germany - 5.5% | | | |
| adidas AG | | 29,400 | 3,791 |
| Allianz SE | | 13,848 | 2,356 |
| Axel Springer Verlag AG | | 57,700 | 3,222 |
| Bayer AG | | 61,340 | 7,076 |
| CTS Eventim AG | | 116,482 | 4,080 |
| Deutsche Bank AG | | 31,560 | 595 |
| Deutsche Boerse AG | | 42,969 | 3,527 |
| Deutsche Telekom AG | | 228,800 | 4,016 |
| E.ON AG | | 97,992 | 1,016 |
| SAP AG | | 40,940 | 3,212 |
| SAP AG sponsored ADR | | 32,900 | 2,587 |
| Scout24 Holding GmbH (a) | | 29,400 | 1,078 |
|
| TOTAL GERMANY | | | 36,556 |
|
| Hong Kong - 0.4% | | | |
| Television Broadcasts Ltd. | | 644,200 | 2,403 |
| India - 0.4% | | | |
| Info Edge India Ltd. | | 214,247 | 2,425 |
| Just Dial Ltd. | | 25,947 | 331 |
|
| TOTAL INDIA | | | 2,756 |
|
| Ireland - 0.6% | | | |
| Paddy Power PLC (Ireland) | | 31,270 | 4,191 |
| Presbia PLC (a) | | 16,010 | 63 |
|
| TOTAL IRELAND | | | 4,254 |
|
| Isle of Man - 0.9% | | | |
| Playtech Ltd. | | 484,907 | 5,700 |
| Italy - 2.2% | | | |
| Brunello Cucinelli SpA | | 4,900 | 96 |
| DiaSorin S.p.A. | | 43,100 | 2,517 |
| Eni SpA | | 60,300 | 985 |
| Eni SpA sponsored ADR | | 22,300 | 731 |
| Intesa Sanpaolo SpA | | 2,295,700 | 6,382 |
| Mediaset SpA | | 843,600 | 3,796 |
|
| TOTAL ITALY | | | 14,507 |
|
| Japan - 20.8% | | | |
| Arcland Service Co. Ltd. | | 335,500 | 9,398 |
| Astellas Pharma, Inc. | | 734,500 | 9,903 |
| COLOPL, Inc. | | 168,300 | 3,325 |
| Daiwa Securities Group, Inc. | | 208,000 | 1,211 |
| Dentsu, Inc. | | 134,100 | 6,813 |
| Fuji Media Holdings, Inc. | | 68,900 | 780 |
| Fukuda Denshi Co. Ltd. | | 16,700 | 912 |
| Hitachi Ltd. | | 703,000 | 3,221 |
| Honda Motor Co. Ltd. | | 77,200 | 2,083 |
| Hoya Corp. | | 152,100 | 5,825 |
| Infomart Corp. (b) | | 46,400 | 415 |
| Japan Tobacco, Inc. | | 138,600 | 5,663 |
| Kakaku.com, Inc. | | 38,700 | 697 |
| Keyence Corp. | | 4,700 | 2,817 |
| Misumi Group, Inc. | | 427,000 | 5,897 |
| Mitsubishi UFJ Financial Group, Inc. | | 744,400 | 3,435 |
| MS&AD Insurance Group Holdings, Inc. | | 53,900 | 1,424 |
| Nakanishi, Inc. | | 17,900 | 587 |
| NEXT Co. Ltd. (b) | | 999,200 | 11,173 |
| Nintendo Co. Ltd. | | 17,600 | 2,383 |
| Nomura Holdings, Inc. | | 204,200 | 868 |
| Olympus Corp. | | 138,900 | 5,411 |
| ORIX Corp. | | 489,000 | 6,917 |
| Proto Corp. | | 36,500 | 479 |
| Rakuten, Inc. | | 722,400 | 7,853 |
| Recruit Holdings Co. Ltd. | | 174,800 | 5,401 |
| San-A Co. Ltd. | | 79,900 | 3,678 |
| SoftBank Corp. | | 79,300 | 4,264 |
| Sony Corp. | | 50,300 | 1,218 |
| Sony Corp. sponsored ADR | | 163,800 | 3,948 |
| Sumitomo Mitsui Financial Group, Inc. | | 70,100 | 2,109 |
| Sundrug Co. Ltd. | | 10,700 | 760 |
| Tokio Marine Holdings, Inc. | | 59,300 | 1,940 |
| Welcia Holdings Co. Ltd. | | 164,000 | 8,663 |
| Zojirushi Thermos (b) | | 374,700 | 5,589 |
|
| TOTAL JAPAN | | | 137,060 |
|
| Korea (South) - 0.7% | | | |
| LG Household & Health Care Ltd. | | 1,675 | 1,472 |
| Medy-Tox, Inc. | | 3,602 | 1,330 |
| NAVER Corp. | | 2,675 | 1,581 |
|
| TOTAL KOREA (SOUTH) | | | 4,383 |
|
| Malta - 0.8% | | | |
| Kambi Group PLC (a)(b) | | 238,000 | 4,105 |
| Unibet Group PLC unit | | 118,500 | 1,337 |
|
| TOTAL MALTA | | | 5,442 |
|
| Mauritius - 0.1% | | | |
| MakeMyTrip Ltd. (a)(b) | | 55,400 | 1,017 |
| Netherlands - 1.3% | | | |
| AEGON NV | | 109,900 | 632 |
| Arcadis NV | | 105,800 | 1,812 |
| ASML Holding NV | | 13,857 | 1,339 |
| ING Groep NV: | | | |
| (Certificaten Van Aandelen) | | 181,810 | 2,227 |
| sponsored ADR | | 59,300 | 728 |
| Koninklijke Wessanen NV | | 169,606 | 1,752 |
|
| TOTAL NETHERLANDS | | | 8,490 |
|
| New Zealand - 1.4% | | | |
| EBOS Group Ltd. | | 99,154 | 1,105 |
| Ryman Healthcare Group Ltd. | | 237,031 | 1,478 |
| Trade Maine Group Ltd. | | 2,104,509 | 6,701 |
|
| TOTAL NEW ZEALAND | | | 9,284 |
|
| Norway - 1.5% | | | |
| Schibsted ASA: | | | |
| (A Shares) | | 78,500 | 2,290 |
| (B Shares) | | 78,500 | 2,232 |
| Statoil ASA | | 70,900 | 1,248 |
| Statoil ASA sponsored ADR (b) | | 241,400 | 4,246 |
|
| TOTAL NORWAY | | | 10,016 |
|
| Philippines - 0.0% | | | |
| Melco Crown Philippines Resort (a) | | 7,218,600 | 353 |
| South Africa - 1.3% | | | |
| Naspers Ltd. Class N | | 60,900 | 8,356 |
| Spain - 1.9% | | | |
| Atresmedia Corporacion de Medios de Comunicacion SA (b) | | 293,000 | 3,815 |
| Banco Bilbao Vizcaya Argentaria SA | | 258,951 | 1,779 |
| Banco Santander SA (Spain) | | 184,604 | 935 |
| Mediaset Espana Comunicacion SA | | 279,417 | 3,628 |
| Melia Hotels International SA (b) | | 217,700 | 2,740 |
|
| TOTAL SPAIN | | | 12,897 |
|
| Sweden - 1.7% | | | |
| Arcam AB (a)(b) | | 25,600 | 558 |
| Getinge AB (B Shares) | | 99,300 | 2,100 |
| Nordea Bank AB | | 305,800 | 2,968 |
| Svenska Cellulosa AB (SCA) (B Shares) | | 145,100 | 4,570 |
| Swedbank AB (A Shares) | | 51,612 | 1,113 |
|
| TOTAL SWEDEN | | | 11,309 |
|
| Switzerland - 5.4% | | | |
| Credit Suisse Group AG | | 127,052 | 1,934 |
| Julius Baer Group Ltd. | | 15,170 | 650 |
| Nestle SA | | 230,437 | 17,196 |
| Roche Holding AG (participation certificate) | | 12,818 | 3,243 |
| Syngenta AG (Switzerland) | | 22,019 | 8,814 |
| UBS Group AG | | 208,359 | 3,606 |
|
| TOTAL SWITZERLAND | | | 35,443 |
|
| United Kingdom - 18.4% | | | |
| AstraZeneca PLC (United Kingdom) | | 69,873 | 4,009 |
| Barclays PLC | | 1,310,549 | 3,290 |
| BHP Billiton PLC | | 88,741 | 1,213 |
| BP PLC | | 368,700 | 2,031 |
| BP PLC sponsored ADR | | 50,191 | 1,685 |
| Brammer PLC (b) | | 85,132 | 217 |
| Dechra Pharmaceuticals PLC | | 73,200 | 1,183 |
| Diageo PLC | | 277,567 | 7,504 |
| Essentra PLC | | 192,525 | 2,284 |
| Foxtons Group PLC | | 470,700 | 994 |
| Howden Joinery Group PLC | | 1,560,600 | 11,265 |
| HSBC Holdings PLC: | | | |
| (United Kingdom) | | 469,000 | 3,108 |
| sponsored ADR | | 140,191 | 4,673 |
| ITV PLC | | 1,992,600 | 6,557 |
| Johnson Matthey PLC | | 30,904 | 1,304 |
| JUST EAT Ltd. (a) | | 279,914 | 1,569 |
| LivaNova PLC (a) | | 19,842 | 1,054 |
| Lloyds Banking Group PLC | | 6,590,799 | 6,469 |
| M&C Saatchi PLC | | 887,505 | 4,487 |
| Micro Focus International PLC | | 20,400 | 456 |
| Moneysupermarket.com Group PLC | | 565,100 | 2,592 |
| Nahl Group PCL | | 106,110 | 379 |
| Prudential PLC | | 68,829 | 1,359 |
| Rightmove PLC | | 112,200 | 6,325 |
| Rio Tinto PLC | | 68,432 | 2,296 |
| Rolls-Royce Group PLC | | 217,174 | 2,124 |
| Royal Bank of Scotland Group PLC (a) | | 120,080 | 404 |
| Royal Dutch Shell PLC: | | | |
| Class A (United Kingdom) | | 233,928 | 6,127 |
| Class B (United Kingdom) | | 156,090 | 4,098 |
| Shawbrook Group PLC | | 572,500 | 2,397 |
| Softcat PLC | | 95,400 | 445 |
| SThree PLC | | 218,000 | 1,083 |
| SuperGroup PLC | | 144,500 | 2,574 |
| Ted Baker PLC | | 65,400 | 2,279 |
| Virgin Money Holdings Uk PLC | | 692,700 | 3,695 |
| Vodafone Group PLC | | 2,814,600 | 9,068 |
| Whitbread PLC | | 17,336 | 981 |
| Zoopla Property Group PLC (b) | | 1,791,000 | 7,707 |
|
| TOTAL UNITED KINGDOM | | | 121,285 |
|
| United States of America - 10.8% | | | |
| Alphabet, Inc.: | | | |
| Class A | | 8,200 | 5,805 |
| Class C | | 3,214 | 2,227 |
| BlackRock, Inc. Class A | | 12,100 | 4,312 |
| Boston Beer Co., Inc. Class A (a) | | 10,800 | 1,686 |
| Dave & Buster's Entertainment, Inc. (a) | | 27,626 | 1,069 |
| Dunkin' Brands Group, Inc. | | 41,100 | 1,911 |
| eBay, Inc. (a) | | 74,100 | 1,810 |
| Electronic Arts, Inc. (a) | | 30,100 | 1,862 |
| Facebook, Inc. Class A (a) | | 58,700 | 6,902 |
| Molson Coors Brewing Co. Class B | | 14,500 | 1,387 |
| Monsanto Co. | | 26,700 | 2,501 |
| Monster Beverage Corp. | | 16,400 | 2,365 |
| PayPal Holdings, Inc. (a) | | 105,300 | 4,126 |
| Priceline Group, Inc. (a) | | 6,900 | 9,271 |
| Sprouts Farmers Market LLC (a) | | 244,900 | 6,874 |
| Tiffany & Co., Inc. | | 43,000 | 3,068 |
| TripAdvisor, Inc. (a) | | 17,900 | 1,156 |
| Visa, Inc. Class A | | 107,500 | 8,303 |
| World Wrestling Entertainment, Inc. Class A (b) | | 135,200 | 2,250 |
| Zillow Group, Inc.: | | | |
| Class A (a)(b) | | 36,400 | 911 |
| Class C (a)(b) | | 52,000 | 1,250 |
|
| TOTAL UNITED STATES OF AMERICA | | | 71,046 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $611,441) | | | 648,273 |
|
| Nonconvertible Preferred Stocks - 1.0% | | | |
| Germany - 1.0% | | | |
| Sartorius AG (non-vtg.) | | 13,500 | 3,330 |
| Volkswagen AG | | 22,900 | 3,316 |
|
| TOTAL GERMANY | | | 6,646 |
|
| United Kingdom - 0.0% | | | |
| Rolls-Royce Group PLC | | 16,406,254 | 24 |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | | | |
| (Cost $4,453) | | | 6,670 |
|
| Money Market Funds - 4.4% | | | |
| Fidelity Securities Lending Cash Central Fund, 0.42% (c)(d) | | | |
| (Cost $29,151) | | 29,151,323 | 29,151 |
| TOTAL INVESTMENT PORTFOLIO - 103.7% | | | |
| (Cost $645,045) | | | 684,094 |
| NET OTHER ASSETS (LIABILITIES) - (3.7)% | | | (24,324) |
| NET ASSETS - 100% | | | $659,770 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
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 | $22 |
| Fidelity Securities Lending Cash Central Fund | 334 |
| Total | $356 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2016, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | | | | |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Consumer Discretionary | $179,083 | $124,090 | $54,993 | $-- |
| Consumer Staples | 68,460 | 24,996 | 43,464 | -- |
| Energy | 28,907 | 6,662 | 22,245 | -- |
| Financials | 94,300 | 44,840 | 49,460 | -- |
| Health Care | 85,114 | 41,244 | 43,870 | -- |
| Industrials | 44,353 | 22,050 | 22,303 | -- |
| Information Technology | 111,545 | 86,740 | 24,805 | -- |
| Materials | 20,698 | 14,903 | 5,795 | -- |
| Telecommunication Services | 21,467 | 1,007 | 20,460 | -- |
| Utilities | 1,016 | -- | 1,016 | -- |
| Money Market Funds | 29,151 | 29,151 | -- | -- |
| Total Investments in Securities: | $684,094 | $395,683 | $288,411 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2016. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
| Transfers | Total (000s) |
| Level 1 to Level 2 | $7,119 |
| Level 2 to Level 1 | $25,663 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | | April 30, 2016 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $27,819) — See accompanying schedule:
Unaffiliated issuers (cost $615,894) | $654,943 | |
| Fidelity Central Funds (cost $29,151) | 29,151 | |
| Total Investments (cost $645,045) | | $684,094 |
| Foreign currency held at value (cost $162) | | 162 |
| Receivable for investments sold | | 3,145 |
| Receivable for fund shares sold | | 104 |
| Dividends receivable | | 3,050 |
| Distributions receivable from Fidelity Central Funds | | 83 |
| Prepaid expenses | | 1 |
| Other receivables | | 69 |
| Total assets | | 690,708 |
| Liabilities | | |
| Payable to custodian bank | $120 | |
| Payable for investments purchased | 262 | |
| Payable for fund shares redeemed | 633 | |
| Accrued management fee | 446 | |
| Distribution and service plan fees payable | 138 | |
| Other affiliated payables | 136 | |
| Other payables and accrued expenses | 52 | |
| Collateral on securities loaned, at value | 29,151 | |
| Total liabilities | | 30,938 |
| Net Assets | | $659,770 |
| Net Assets consist of: | | |
| Paid in capital | | $643,378 |
| Undistributed net investment income | | 2,765 |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (25,420) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 39,047 |
| Net Assets | | $659,770 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($66,365.3 ÷ 3,205.922 shares) | | $20.70 |
| Maximum offering price per share (100/94.25 of $20.70) | | $21.96 |
| Class T: | | |
| Net Asset Value and redemption price per share ($258,244.1 ÷ 12,159.900 shares) | | $21.24 |
| Maximum offering price per share (100/96.50 of $21.24) | | $22.01 |
| Class B: | | |
| Net Asset Value and offering price per share ($1,012.8 ÷ 50.811 shares)(a) | | $19.93 |
| Class C: | | |
| Net Asset Value and offering price per share ($17,397.2 ÷ 865.258 shares)(a) | | $20.11 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($316,750.8 ÷ 14,988.925 shares) | | $21.13 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | | Six months ended April 30, 2016 (Unaudited) |
| Investment Income | | |
| Dividends | | $7,634 |
| Income from Fidelity Central Funds | | 356 |
| Income before foreign taxes withheld | | 7,990 |
| Less foreign taxes withheld | | (666) |
| Total income | | 7,324 |
| Expenses | | |
| Management fee | | |
| Basic fee | $2,187 | |
| Performance adjustment | 509 | |
| Transfer agent fees | 652 | |
| Distribution and service plan fees | 838 | |
| Accounting and security lending fees | 163 | |
| Custodian fees and expenses | 43 | |
| Independent trustees' compensation | 1 | |
| Registration fees | 49 | |
| Audit | 49 | |
| Legal | 1 | |
| Miscellaneous | 3 | |
| Total expenses before reductions | 4,495 | |
| Expense reductions | (6) | 4,489 |
| Net investment income (loss) | | 2,835 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | 1,788 | |
| Foreign currency transactions | (34) | |
| Total net realized gain (loss) | | 1,754 |
Change in net unrealized appreciation (depreciation) on:
Investment securities | (29,297) | |
| Assets and liabilities in foreign currencies | 90 | |
| Total change in net unrealized appreciation (depreciation) | | (29,207) |
| Net gain (loss) | | (27,453) |
| Net increase (decrease) in net assets resulting from operations | | $(24,618) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Six months ended April 30, 2016 (Unaudited) | Year ended October 31, 2015 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $2,835 | $6,559 |
| Net realized gain (loss) | 1,754 | 25,791 |
| Change in net unrealized appreciation (depreciation) | (29,207) | (15,390) |
| Net increase (decrease) in net assets resulting from operations | (24,618) | 16,960 |
| Distributions to shareholders from net investment income | (2,404) | (1,529) |
| Share transactions - net increase (decrease) | 4,899 | (42,896) |
| Redemption fees | 10 | 9 |
| Total increase (decrease) in net assets | (22,113) | (27,456) |
| Net Assets | | |
| Beginning of period | 681,883 | 709,339 |
| End of period (including undistributed net investment income of $2,765 and undistributed net investment income of $2,334, respectively) | $659,770 | $681,883 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Overseas Fund Class A
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $21.59 | $21.09 | $21.61 | $16.76 | $16.13 | $17.77 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .09 | .19 | .24 | .17 | .23 | .16 |
| Net realized and unrealized gain (loss) | (.90) | .33 | (.50) | 4.97 | .64 | (1.54) |
| Total from investment operations | (.81) | .52 | (.26) | 5.14 | .87 | (1.38) |
| Distributions from net investment income | (.08) | (.02) | (.18) | (.25) | (.24) | (.21) |
| Distributions from net realized gain | – | – | (.08) | (.04) | – | (.05) |
| Total distributions | (.08) | (.02) | (.26) | (.29) | (.24) | (.26) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $20.70 | $21.59 | $21.09 | $21.61 | $16.76 | $16.13 |
| Total ReturnC,D,E | (3.77)% | 2.46% | (1.24)% | 31.13% | 5.51% | (7.95)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 1.42%H | 1.35% | 1.30% | 1.37% | 1.33% | 1.34% |
| Expenses net of fee waivers, if any | 1.42%H | 1.35% | 1.30% | 1.37% | 1.33% | 1.34% |
| Expenses net of all reductions | 1.42%H | 1.34% | 1.30% | 1.36% | 1.32% | 1.32% |
| Net investment income (loss) | .84%H | .89% | 1.10% | .91% | 1.43% | .90% |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $66 | $78 | $65 | $69 | $60 | $60 |
| Portfolio turnover rateI | 38%H | 29% | 39% | 37% | 36% | 44% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Overseas Fund Class T
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $22.11 | $21.62 | $22.16 | $17.16 | $16.50 | $18.18 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .07 | .15 | .21 | .14 | .20 | .13 |
| Net realized and unrealized gain (loss) | (.92) | .34 | (.52) | 5.11 | .66 | (1.59) |
| Total from investment operations | (.85) | .49 | (.31) | 5.25 | .86 | (1.46) |
| Distributions from net investment income | (.02) | – | (.15) | (.21) | (.20) | (.17) |
| Distributions from net realized gain | – | – | (.08) | (.04) | – | (.05) |
| Total distributions | (.02) | – | (.23) | (.25) | (.20) | (.22) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $21.24 | $22.11 | $21.62 | $22.16 | $17.16 | $16.50 |
| Total ReturnC,D,E | (3.85)% | 2.27% | (1.42)% | 30.96% | 5.32% | (8.17)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 1.63%H | 1.55% | 1.48% | 1.53% | 1.51% | 1.52% |
| Expenses net of fee waivers, if any | 1.63%H | 1.55% | 1.48% | 1.53% | 1.51% | 1.51% |
| Expenses net of all reductions | 1.63%H | 1.55% | 1.48% | 1.52% | 1.50% | 1.49% |
| Net investment income (loss) | .63%H | .69% | .92% | .74% | 1.25% | .73% |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $258 | $285 | $293 | $329 | $271 | $305 |
| Portfolio turnover rateI | 38%H | 29% | 39% | 37% | 36% | 44% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Overseas Fund Class B
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.79 | $20.46 | $21.02 | $16.25 | $15.58 | $17.18 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | – | .02 | .07 | .03 | .10 | .03 |
| Net realized and unrealized gain (loss) | (.86) | .31 | (.49) | 4.85 | .63 | (1.51) |
| Total from investment operations | (.86) | .33 | (.42) | 4.88 | .73 | (1.48) |
| Distributions from net investment income | – | – | (.06) | (.07) | (.06) | (.08) |
| Distributions from net realized gain | – | – | (.08) | (.04) | – | (.05) |
| Total distributions | – | – | (.14) | (.11) | (.06) | (.12)B |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
| Net asset value, end of period | $19.93 | $20.79 | $20.46 | $21.02 | $16.25 | $15.58 |
| Total ReturnD,E,F | (4.14)% | 1.61% | (2.03)% | 30.21% | 4.72% | (8.67)% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 2.23%I | 2.16% | 2.09% | 2.12% | 2.09% | 2.10% |
| Expenses net of fee waivers, if any | 2.22%I | 2.15% | 2.09% | 2.12% | 2.09% | 2.09% |
| Expenses net of all reductions | 2.22%I | 2.15% | 2.09% | 2.11% | 2.07% | 2.07% |
| Net investment income (loss) | .03%I | .09% | .31% | .16% | .67% | .15% |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $1 | $2 | $2 | $3 | $3 | $4 |
| Portfolio turnover rateJ | 38%I | 29% | 39% | 37% | 36% | 44% |
A Calculated based on average shares outstanding during the period.
B 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.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Overseas Fund Class C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.98 | $20.63 | $21.21 | $16.43 | $15.78 | $17.39 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | – | .02 | .07 | .03 | .11 | .03 |
| Net realized and unrealized gain (loss) | (.87) | .33 | (.50) | 4.89 | .64 | (1.52) |
| Total from investment operations | (.87) | .35 | (.43) | 4.92 | .75 | (1.49) |
| Distributions from net investment income | – | – | (.07) | (.10) | (.10) | (.07) |
| Distributions from net realized gain | – | – | (.08) | (.04) | – | (.05) |
| Total distributions | – | – | (.15) | (.14) | (.10) | (.12) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $20.11 | $20.98 | $20.63 | $21.21 | $16.43 | $15.78 |
| Total ReturnC,D,E | (4.15)% | 1.70% | (2.06)% | 30.16% | 4.78% | (8.67)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 2.23%H | 2.15% | 2.08% | 2.12% | 2.09% | 2.09% |
| Expenses net of fee waivers, if any | 2.22%H | 2.15% | 2.08% | 2.12% | 2.09% | 2.09% |
| Expenses net of all reductions | 2.22%H | 2.14% | 2.08% | 2.10% | 2.07% | 2.07% |
| Net investment income (loss) | .03%H | .09% | .32% | .16% | .67% | .15% |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $17 | $19 | $19 | $21 | $16 | $19 |
| Portfolio turnover rateI | 38%H | 29% | 39% | 37% | 36% | 44% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Overseas Fund Class I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $22.06 | $21.55 | $22.07 | $17.11 | $16.45 | $18.10 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .12 | .27 | .32 | .24 | .29 | .23 |
| Net realized and unrealized gain (loss) | (.91) | .34 | (.52) | 5.08 | .65 | (1.59) |
| Total from investment operations | (.79) | .61 | (.20) | 5.32 | .94 | (1.36) |
| Distributions from net investment income | (.14) | (.10) | (.24) | (.31) | (.28) | (.24) |
| Distributions from net realized gain | – | – | (.08) | (.04) | – | (.05) |
| Total distributions | (.14) | (.10) | (.32) | (.36)B | (.28) | (.29) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
| Net asset value, end of period | $21.13 | $22.06 | $21.55 | $22.07 | $17.11 | $16.45 |
| Total ReturnD,E | (3.62)% | 2.82% | (.95)% | 31.63% | 5.91% | (7.70)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 1.11%H | 1.03% | .96% | 1.02% | .99% | 1.00% |
| Expenses net of fee waivers, if any | 1.11%H | 1.03% | .96% | 1.02% | .99% | .99% |
| Expenses net of all reductions | 1.10%H | 1.02% | .96% | 1.01% | .97% | .97% |
| Net investment income (loss) | 1.15%H | 1.21% | 1.44% | 1.26% | 1.77% | 1.25% |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $317 | $298 | $330 | $307 | $257 | $349 |
| Portfolio turnover rateI | 38%H | 29% | 39% | 37% | 36% | 44% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.36 per share is comprised of distributions from net investment income of $.314 and distributions from net realized gain of $.041 per share.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2016
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor Overseas Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Class I shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a maximum holding period of seven years from the initial date of purchase.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective on or about July 1, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of April 30, 2016, including information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, 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 | $109,054 |
| Gross unrealized depreciation | (78,065) |
| Net unrealized appreciation (depreciation) on securities | $30,989 |
| Tax cost | $653,105 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2017 | $(16,742) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $125,496 and $121,172, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .424% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the investment performance of the asset-weighted return of all classes as compared to its benchmark index, the MSCI EAFE Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .83% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
| Class A | -% | .25% | $89 | $- |
| Class T | .25% | .25% | 656 | - |
| Class B | .75% | .25% | 6 | 5 |
| Class C | .75% | .25% | 87 | 8 |
| | | | $838 | $13 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $3 |
| Class T | 2 |
| Class B(a) | –(b) |
| Class C(a) | 1 |
| | $6 |
(a) 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.
(b) In the amount of less than five hundred dollars.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| | Amount | % of
Class-Level Average
Net Assets(a) |
| Class A | $87 | .24 |
| Class T | 266 | .20 |
| Class B | 2 | .30 |
| Class C | 26 | .30 |
| Class I | 271 | .18 |
| | $652 | |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were in an amount of less than five hundred dollars for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $382. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $334, including $13 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $3 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $3.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| From net investment income | | |
| Class A | $285 | $59 |
| Class T | 255 | – |
| Class I | 1,864 | 1,470 |
| Total | $2,404 | $1,529 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| Class A | | | | |
| Shares sold | 239 | 1,338 | $4,888 | $29,635 |
| Reinvestment of distributions | 13 | 3 | 274 | 56 |
| Shares redeemed | (678) | (804) | (13,727) | (17,607) |
| Net increase (decrease) | (426) | 537 | $(8,565) | $12,084 |
| Class T | | | | |
| Shares sold | 936 | 2,579 | $19,462 | $57,864 |
| Reinvestment of distributions | 11 | – | 250 | – |
| Shares redeemed | (1,690) | (3,247) | (35,218) | (71,824) |
| Net increase (decrease) | (743) | (668) | $(15,506) | $(13,960) |
| Class B | | | | |
| Shares sold | 1 | 32 | $15 | $692 |
| Shares redeemed | (29) | (54) | (562) | (1,123) |
| Net increase (decrease) | (28) | (22) | $(547) | $(431) |
| Class C | | | | |
| Shares sold | 49 | 204 | $978 | $4,420 |
| Shares redeemed | (77) | (230) | (1,521) | (4,851) |
| Net increase (decrease) | (28) | (26) | $(543) | $(431) |
| Class I | | | | |
| Shares sold | 1,820 | 1,548 | $36,946 | $33,691 |
| Reinvestment of distributions | 49 | 67 | 1,078 | 1,452 |
| Shares redeemed | (383) | (3,406) | (7,964) | (75,301) |
| Net increase (decrease) | 1,486 | (1,791) | $30,060 | $(40,158) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, Strategic Advisers International II Fund was the owner of record of approximately 18% of the total outstanding shares of the Fund.
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, 2015 to April 30, 2016).
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.
| | Annualized Expense Ratio-A | Beginning
Account Value
November 1, 2015 | Ending
Account Value
April 30, 2016 | Expenses Paid
During Period-B
November 1, 2015
to April 30, 2016 |
| Class A | 1.42% | | | |
| Actual | | $1,000.00 | $962.30 | $6.93 |
| Hypothetical-C | | $1,000.00 | $1,017.80 | $7.12 |
| Class T | 1.63% | | | |
| Actual | | $1,000.00 | $961.50 | $7.95 |
| Hypothetical-C | | $1,000.00 | $1,016.76 | $8.17 |
| Class B | 2.22% | | | |
| Actual | | $1,000.00 | $958.60 | $10.81 |
| Hypothetical-C | | $1,000.00 | $1,013.82 | $11.12 |
| Class C | 2.23% | | | |
| Actual | | $1,000.00 | $958.50 | $10.86 |
| Hypothetical-C | | $1,000.00 | $1,013.77 | $11.17 |
| Class I | 1.11% | | | |
| Actual | | $1,000.00 | $963.80 | $5.42 |
| Hypothetical-C | | $1,000.00 | $1,019.34 | $5.57 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
C 5% return per year before expenses
OSI-SANN-0616
1.703566.118
Fidelity Advisor® Diversified International Fund
Class Z
Semi-Annual Report April 30, 2016 |
|
Contents
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. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Five Stocks as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Novo Nordisk A/S Series B (Denmark, Pharmaceuticals) | 2.1 | 1.9 |
| Bayer AG (Germany, Pharmaceuticals) | 1.8 | 1.5 |
| ORIX Corp. (Japan, Diversified Financial Services) | 1.8 | 1.8 |
| Anheuser-Busch InBev SA NV (Belgium, Beverages) | 1.7 | 1.6 |
| Hoya Corp. (Japan, Health Care Equipment & Supplies) | 1.4 | 1.4 |
| | 8.8 | |
Top Five Market Sectors as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Financials | 20.6 | 21.4 |
| Health Care | 17.6 | 17.4 |
| Consumer Discretionary | 14.9 | 16.1 |
| Consumer Staples | 14.5 | 12.3 |
| Information Technology | 13.2 | 12.3 |
Top Five Countries as of April 30, 2016
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| United Kingdom | 15.0 | 18.2 |
| Japan | 14.1 | 14.5 |
| United States of America | 8.5 | 7.3 |
| Germany | 8.5 | 7.6 |
| Switzerland | 4.8 | 4.7 |
Percentages are adjusted for the effect of futures contracts, if applicable.
Asset Allocation (% of fund's net assets)
| As of April 30, 2016 |
| | Stocks and Equity Futures | 97.3% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 2.7% |
| As of October 31, 2015 |
| | Stocks and Equity Futures | 95.2% |
| | Other Investments | 0.1% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 4.7% |
Investments April 30, 2016 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 95.3% | | | |
| | | Shares | Value (000s) |
| Australia - 1.1% | | | |
| Ansell Ltd. (a) | | 258,534 | $3,918 |
| Australia & New Zealand Banking Group Ltd. | | 459,310 | 8,419 |
| CSL Ltd. | | 18,683 | 1,494 |
| Magellan Financial Group Ltd. | | 289,293 | 4,729 |
| Ramsay Health Care Ltd. | | 82,294 | 4,064 |
|
| TOTAL AUSTRALIA | | | 22,624 |
|
| Austria - 0.3% | | | |
| Andritz AG | | 65,400 | 3,663 |
| Zumtobel AG | | 174,600 | 2,273 |
|
| TOTAL AUSTRIA | | | 5,936 |
|
| Bailiwick of Jersey - 2.0% | | | |
| Integrated Diagnostics Holdings PLC | | 164,400 | 764 |
| Sanne Group PLC | | 333,100 | 2,148 |
| Shire PLC | | 229,800 | 14,340 |
| Wolseley PLC | | 226,863 | 12,707 |
| WPP PLC | | 435,324 | 10,170 |
|
| TOTAL BAILIWICK OF JERSEY | | | 40,129 |
|
| Belgium - 2.4% | | | |
| Anheuser-Busch InBev SA NV | | 267,831 | 33,152 |
| KBC Groep NV | | 265,798 | 14,922 |
|
| TOTAL BELGIUM | | | 48,074 |
|
| Canada - 4.2% | | | |
| Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | | 411,200 | 18,025 |
| AutoCanada, Inc. | | 122,300 | 2,001 |
| Canadian Energy Services & Technology Corp. | | 2,653,100 | 8,099 |
| Cenovus Energy, Inc. | | 235,800 | 3,738 |
| CGI Group, Inc. Class A (sub. vtg.) (a) | | 299,500 | 13,682 |
| Constellation Software, Inc. | | 22,400 | 8,754 |
| Fairfax India Holdings Corp. (a) | | 494,000 | 5,483 |
| Imperial Oil Ltd. | | 149,400 | 4,955 |
| Keyera Corp. (b) | | 98,200 | 3,163 |
| PrairieSky Royalty Ltd. | | 81,669 | 1,720 |
| Suncor Energy, Inc. | | 318,900 | 9,361 |
| Tourmaline Oil Corp.(a) | | 199,800 | 4,608 |
|
| TOTAL CANADA | | | 83,589 |
|
| Cayman Islands - 1.0% | | | |
| 58.com, Inc. ADR (a) | | 43,400 | 2,372 |
| Alibaba Group Holding Ltd. sponsored ADR (a) | | 200,800 | 15,450 |
| Lee's Pharmaceutical Holdings Ltd. | | 1,208,500 | 978 |
| Regina Miracle International Holdings Ltd. (a) | | 1,136,558 | 1,725 |
|
| TOTAL CAYMAN ISLANDS | | | 20,525 |
|
| China - 0.7% | | | |
| Inner Mongoli Yili Industries Co. Ltd. | | 497,608 | 1,155 |
| Kweichow Moutai Co. Ltd. | | 175,010 | 6,791 |
| Qingdao Haier Co. Ltd. | | 3,912,122 | 5,034 |
| Weifu High-Technology Co. Ltd. (B Shares) | | 239,500 | 506 |
|
| TOTAL CHINA | | | 13,486 |
|
| Curacao - 0.8% | | | |
| Schlumberger Ltd. | | 196,900 | 15,819 |
| Denmark - 2.9% | | | |
| Genmab A/S (a) | | 86,700 | 12,846 |
| NNIT A/S | | 139,682 | 3,804 |
| Novo Nordisk A/S Series B | | 740,740 | 41,354 |
|
| TOTAL DENMARK | | | 58,004 |
|
| Finland - 0.3% | | | |
| Sampo Oyj (A Shares) | | 113,300 | 4,947 |
| France - 4.3% | | | |
| Accor SA (b) | | 216,069 | 9,571 |
| Air Liquide SA | | 22,860 | 2,593 |
| ALTEN | | 36,200 | 2,238 |
| Amundi SA | | 199,404 | 9,176 |
| AXA SA | | 475,000 | 11,994 |
| Capgemini SA | | 46,900 | 4,378 |
| Danone SA | | 111,747 | 7,829 |
| Publicis Groupe SA | | 56,310 | 4,167 |
| Sanofi SA | | 317,468 | 26,168 |
| VINCI SA | | 55,200 | 4,124 |
| Worldline SA (a)(c) | | 124,824 | 3,496 |
|
| TOTAL FRANCE | | | 85,734 |
|
| Germany - 7.4% | | | |
| adidas AG | | 107,890 | 13,911 |
| Axel Springer Verlag AG | | 42,100 | 2,351 |
| Bayer AG | | 315,252 | 36,369 |
| Brenntag AG | | 75,600 | 4,433 |
| Continental AG | | 44,700 | 9,817 |
| Deutsche Boerse AG | | 44,000 | 3,612 |
| Deutsche Post AG | | 64,027 | 1,881 |
| Fresenius SE & Co. KGaA | | 349,300 | 25,406 |
| KION Group AG | | 108,500 | 5,911 |
| Nexus AG | | 95,900 | 1,680 |
| ProSiebenSat.1 Media AG | | 247,900 | 12,637 |
| Rational AG | | 1,000 | 508 |
| SAP AG | | 256,389 | 20,117 |
| Symrise AG | | 116,900 | 7,745 |
|
| TOTAL GERMANY | | | 146,378 |
|
| Hong Kong - 2.0% | | | |
| AIA Group Ltd. | | 4,732,000 | 28,319 |
| China Resources Beer Holdings Co. Ltd. | | 1,530,000 | 3,362 |
| Hang Seng Bank Ltd. | | 139,800 | 2,535 |
| Techtronic Industries Co. Ltd. | | 1,559,500 | 5,846 |
|
| TOTAL HONG KONG | | | 40,062 |
|
| India - 3.2% | | | |
| Apollo Hospitals Enterprise Ltd. | | 149,447 | 2,952 |
| Axis Bank Ltd. (a) | | 563,244 | 4,006 |
| Bharti Infratel Ltd. | | 1,488,127 | 8,400 |
| Edelweiss Financial Services Ltd. | | 2,655,200 | 2,320 |
| Exide Industries Ltd. (a) | | 1,136,771 | 2,520 |
| HCL Technologies Ltd. | | 325,087 | 3,672 |
| HDFC Bank Ltd. (a) | | 793,748 | 16,134 |
| Housing Development Finance Corp. Ltd. | | 724,211 | 11,867 |
| ITC Ltd. | | 1,552,545 | 7,595 |
| LIC Housing Finance Ltd. (a) | | 274,208 | 1,908 |
| Pidilite Industries Ltd. (a) | | 241,934 | 2,196 |
|
| TOTAL INDIA | | | 63,570 |
|
| Indonesia - 0.5% | | | |
| PT Bank Central Asia Tbk | | 4,553,100 | 4,505 |
| PT Bank Rakyat Indonesia Tbk | | 6,393,400 | 5,018 |
|
| TOTAL INDONESIA | | | 9,523 |
|
| Ireland - 3.2% | | | |
| Allergan PLC (a) | | 62,800 | 13,600 |
| DCC PLC (United Kingdom) | | 71,500 | 6,331 |
| Greencore Group PLC | | 919,621 | 4,848 |
| Horizon Pharma PLC (a) | | 218,400 | 3,357 |
| Kerry Group PLC Class A | | 94,800 | 8,453 |
| Medtronic PLC | | 132,300 | 10,472 |
| Ryanair Holdings PLC sponsored ADR | | 194,360 | 15,733 |
|
| TOTAL IRELAND | | | 62,794 |
|
| Isle of Man - 0.6% | | | |
| Optimal Payments PLC (a) | | 1,284,533 | 7,155 |
| Playtech Ltd. | | 483,525 | 5,684 |
|
| TOTAL ISLE OF MAN | | | 12,839 |
|
| Israel - 2.6% | | | |
| Cellcom Israel Ltd. (Israel) (a) | | 486,900 | 3,654 |
| Check Point Software Technologies Ltd. (a) | | 132,000 | 10,939 |
| Frutarom Industries Ltd. | | 132,000 | 6,765 |
| Partner Communications Co. Ltd. (a) | | 162,104 | 843 |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | | 523,200 | 28,488 |
|
| TOTAL ISRAEL | | | 50,689 |
|
| Italy - 0.7% | | | |
| Intesa Sanpaolo SpA | | 3,417,900 | 9,501 |
| Mediaset SpA | | 769,000 | 3,461 |
|
| TOTAL ITALY | | | 12,962 |
|
| Japan - 14.1% | | | |
| Ain Holdings, Inc. | | 77,700 | 3,775 |
| Astellas Pharma, Inc. | | 1,346,700 | 18,157 |
| Casio Computer Co. Ltd. (b) | | 228,500 | 4,348 |
| Daiichikosho Co. Ltd. | | 74,400 | 3,119 |
| Dentsu, Inc. | | 169,600 | 8,617 |
| Don Quijote Holdings Co. Ltd. | | 177,700 | 6,322 |
| Fast Retailing Co. Ltd. | | 9,200 | 2,422 |
| Glory Ltd. (d) | | 58,800 | 1,926 |
| Hoya Corp. | | 747,400 | 28,621 |
| Japan Exchange Group, Inc. | | 632,300 | 9,417 |
| Japan Tobacco, Inc. | | 474,200 | 19,375 |
| KDDI Corp. | | 607,800 | 17,508 |
| Keyence Corp. | | 37,400 | 22,417 |
| Kubota Corp. | | 71,800 | 1,046 |
| Minebea Mitsumi, Inc. | | 250,000 | 2,048 |
| Misumi Group, Inc. | | 194,300 | 2,683 |
| Mitsubishi UFJ Financial Group, Inc. | | 2,220,800 | 10,249 |
| NGK Spark Plug Co. Ltd. | | 139,300 | 2,778 |
| Nippon Paint Holdings Co. Ltd. | | 42,500 | 1,116 |
| Nitori Holdings Co. Ltd. | | 84,100 | 7,823 |
| NOF Corp. | | 282,000 | 2,220 |
| Olympus Corp. | | 211,100 | 8,224 |
| ORIX Corp. | | 2,507,100 | 35,463 |
| Rakuten, Inc. | | 864,500 | 9,398 |
| Seven & i Holdings Co. Ltd. | | 240,700 | 9,821 |
| SHIMANO, Inc. | | 53,500 | 7,676 |
| Shinsei Bank Ltd. | | 2,310,000 | 3,238 |
| SoftBank Corp. | | 154,300 | 8,297 |
| Suzuki Motor Corp. | | 141,400 | 3,875 |
| Tsuruha Holdings, Inc. | | 141,100 | 13,534 |
| Welcia Holdings Co. Ltd. | | 58,200 | 3,074 |
|
| TOTAL JAPAN | | | 278,587 |
|
| Korea (South) - 0.2% | | | |
| Orion Corp. | | 5,836 | 4,737 |
| Luxembourg - 0.7% | | | |
| Eurofins Scientific SA | | 36,500 | 13,543 |
| Netherlands - 4.0% | | | |
| AerCap Holdings NV (a) | | 162,700 | 6,510 |
| Altice NV: | | | |
| Class A (a) | | 837,674 | 12,709 |
| Class B (a) | | 282,992 | 4,324 |
| Gree Electric Appliances, Inc. of Zhuhai ELS (BNP Paribas Warrants Program) (A Shares)warrants 11/24/16 (a)(c) | | 144,800 | 430 |
| IMCD Group BV | | 135,500 | 5,471 |
| ING Groep NV (Certificaten Van Aandelen) | | 862,600 | 10,564 |
| NXP Semiconductors NV (a) | | 85,900 | 7,326 |
| RELX NV | | 691,942 | 11,611 |
| Unilever NV (Certificaten Van Aandelen) (Bearer) | | 478,600 | 21,025 |
|
| TOTAL NETHERLANDS | | | 79,970 |
|
| New Zealand - 0.1% | | | |
| Ryman Healthcare Group Ltd. | | 252,900 | 1,577 |
| Norway - 0.4% | | | |
| Statoil ASA | | 479,000 | 8,431 |
| Philippines - 0.2% | | | |
| Alliance Global Group, Inc. | | 12,852,154 | 3,962 |
| Singapore - 0.6% | | | |
| Broadcom Ltd. | | 39,500 | 5,757 |
| United Overseas Bank Ltd. | | 414,700 | 5,736 |
|
| TOTAL SINGAPORE | | | 11,493 |
|
| South Africa - 1.1% | | | |
| EOH Holdings Ltd. | | 427,200 | 4,158 |
| Naspers Ltd. Class N (d) | | 134,900 | 18,510 |
|
| TOTAL SOUTH AFRICA | | | 22,668 |
|
| Spain - 2.0% | | | |
| Amadeus IT Holding SA Class A | | 338,700 | 15,412 |
| Hispania Activos Inmobiliarios SA (a) | | 207,200 | 3,037 |
| Inditex SA | | 633,569 | 20,339 |
| Telepizza Group SAU | | 207,200 | 1,459 |
|
| TOTAL SPAIN | | | 40,247 |
|
| Sweden - 2.5% | | | |
| ASSA ABLOY AB (B Shares) | | 424,800 | 8,908 |
| Coor Service Management Holding AB | | 445,200 | 2,107 |
| HEXPOL AB (B Shares) (b) | | 146,900 | 1,518 |
| Nordea Bank AB | | 1,247,400 | 12,108 |
| Svenska Cellulosa AB (SCA) (B Shares) | | 571,900 | 18,011 |
| Svenska Handelsbanken AB (A Shares) (b) | | 560,400 | 7,476 |
|
| TOTAL SWEDEN | | | 50,128 |
|
| Switzerland - 4.8% | | | |
| Actelion Ltd. | | 58,435 | 9,442 |
| Compagnie Financiere Richemont SA Series A | | 51,033 | 3,403 |
| Credit Suisse Group AG | | 536,264 | 8,161 |
| GAM Holding Ltd. | | 84,407 | 1,100 |
| Julius Baer Group Ltd. | | 72,090 | 3,089 |
| Partners Group Holding AG | | 15,240 | 6,275 |
| Roche Holding AG (participation certificate) | | 59,287 | 15,000 |
| Sika AG | | 2,320 | 9,874 |
| Syngenta AG (Switzerland) | | 63,418 | 25,386 |
| UBS Group AG | | 784,733 | 13,579 |
|
| TOTAL SWITZERLAND | | | 95,309 |
|
| Taiwan - 1.1% | | | |
| Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | | 904,700 | 21,342 |
| Thailand - 0.2% | | | |
| Kasikornbank PCL (For. Reg.) | | 817,800 | 3,911 |
| United Kingdom - 15.0% | | | |
| AA PLC | | 502,320 | 2,045 |
| Associated British Foods PLC | | 157,700 | 7,060 |
| B&M European Value Retail S.A. | | 2,403,811 | 9,743 |
| British American Tobacco PLC sponsored ADR | | 75,500 | 9,222 |
| BT Group PLC | | 2,003,100 | 12,984 |
| Bunzl PLC | | 175,700 | 5,235 |
| Capita Group PLC | | 266,100 | 3,892 |
| Compass Group PLC | | 572,700 | 10,199 |
| Dignity PLC | | 17,100 | 610 |
| Diploma PLC | | 401,600 | 4,292 |
| Essentra PLC | | 1,189,500 | 14,113 |
| Halma PLC | | 119,100 | 1,552 |
| Howden Joinery Group PLC | | 548,200 | 3,957 |
| IMI PLC | | 164,400 | 2,246 |
| Imperial Tobacco Group PLC | | 255,232 | 13,867 |
| Indivior PLC | | 864,100 | 2,030 |
| ITV PLC | | 3,882,500 | 12,775 |
| Liberty Global PLC: | | | |
| Class A (a) | | 143,600 | 5,418 |
| Class C (a) | | 61,400 | 2,247 |
| Lloyds Banking Group PLC | | 27,782,700 | 27,269 |
| London Stock Exchange Group PLC | | 233,000 | 9,236 |
| Micro Focus International PLC | | 538,200 | 12,024 |
| Melrose Industries PLC | | 359,842 | 1,963 |
| Next PLC | | 163,200 | 12,126 |
| Poundland Group PLC | | 1,394,767 | 3,505 |
| Prudential PLC | | 1,189,532 | 23,481 |
| Reckitt Benckiser Group PLC | | 186,513 | 18,170 |
| Rio Tinto PLC | | 59,500 | 1,996 |
| Rolls-Royce Group PLC | | 735,400 | 7,194 |
| SABMiller PLC | | 183,500 | 11,221 |
| Schroders PLC | | 132,100 | 4,852 |
| Softcat PLC | | 490,700 | 2,287 |
| Sophos Group PLC | | 532,566 | 1,598 |
| Spectris PLC | | 150,900 | 4,015 |
| St. James's Place Capital PLC | | 1,188,700 | 15,059 |
| The Restaurant Group PLC | | 571,100 | 2,296 |
| Virgin Money Holdings Uk PLC | | 989,500 | 5,279 |
| Whitbread PLC | | 167,233 | 9,461 |
|
| TOTAL UNITED KINGDOM | | | 296,519 |
|
| United States of America - 8.1% | | | |
| Alphabet, Inc.: | | | |
| Class A | | 10,195 | 7,217 |
| Class C | | 19,149 | 13,270 |
| Amgen, Inc. | | 65,300 | 10,337 |
| Baxalta, Inc. | | 122,500 | 5,139 |
| Celgene Corp. (a) | | 66,400 | 6,866 |
| Coach, Inc. | | 48,700 | 1,961 |
| Cognizant Technology Solutions Corp. Class A (a) | | 98,700 | 5,761 |
| Coty, Inc. Class A (b) | | 306,400 | 9,315 |
| Fidelity National Information Services, Inc. | | 47,800 | 3,145 |
| Las Vegas Sands Corp. | | 179,800 | 8,118 |
| MasterCard, Inc. Class A | | 148,600 | 14,413 |
| McGraw Hill Financial, Inc. | | 206,500 | 22,065 |
| Mead Johnson Nutrition Co. Class A | | 23,500 | 2,048 |
| Molson Coors Brewing Co. Class B | | 59,900 | 5,728 |
| MSCI, Inc. Class A | | 27,500 | 2,088 |
| NJOY, Inc. (a)(e) | | 725,849 | 93 |
| Noble Energy, Inc. | | 88,700 | 3,203 |
| Oceaneering International, Inc. | | 114,100 | 4,182 |
| Phillips 66 Co. | | 51,100 | 4,196 |
| Qualcomm, Inc. | | 159,600 | 8,063 |
| Spectrum Brands Holdings, Inc. | | 23,700 | 2,692 |
| Verisk Analytics, Inc. (a) | | 25,800 | 2,002 |
| Visa, Inc. Class A | | 198,900 | 15,363 |
| Western Digital Corp. | | 64,700 | 2,644 |
|
| TOTAL UNITED STATES OF AMERICA | | | 159,909 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $1,608,687) | | | 1,890,017 |
|
| Nonconvertible Preferred Stocks - 1.6% | | | |
| Brazil - 0.5% | | | |
| Itau Unibanco Holding SA | | 1,027,300 | 9,818 |
| Germany - 1.1% | | | |
| Henkel AG & Co. KGaA | | 178,800 | 20,408 |
| Jungheinrich AG | | 12,800 | 1,207 |
|
| TOTAL GERMANY | | | 21,615 |
|
| United Kingdom - 0.0% | | | |
| Rolls-Royce Group PLC | | 52,213,400 | 76 |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | | | |
| (Cost $25,429) | | | 31,509 |
| | | Principal Amount (000s) | Value (000s) |
|
| Government Obligations - 0.0% | | | |
| United States of America - 0.0% | | | |
| U.S. Treasury Bills, yield at date of purchase 0.25% to 0.33% 5/26/16 to 7/28/16(f) | | | |
| (Cost $520) | | $520 | 520 |
| | | Shares | Value (000s) |
|
| Money Market Funds - 3.9% | | | |
| Fidelity Cash Central Fund, 0.38% (g) | | 51,741,019 | 51,741 |
| Fidelity Securities Lending Cash Central Fund, 0.42% (g)(h) | | 24,789,142 | 24,789 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $76,530) | | | 76,530 |
| TOTAL INVESTMENT PORTFOLIO - 100.8% | | | |
| (Cost $1,711,166) | | | 1,998,576 |
| NET OTHER ASSETS (LIABILITIES) - (0.8)% | | | (16,604) |
| NET ASSETS - 100% | | | $1,981,972 |
| Futures Contracts | | | |
| | Expiration Date | Underlying Face Amount at Value (000s) | Unrealized Appreciation/(Depreciation) (000s) |
| Purchased | | | |
| Equity Index Contracts | | | |
| 97 CME Nikkei 225 Index Contracts (United States) | June 2016 | 7,724 | $(527) |
The face value of futures purchased as a percentage of Net Assets is 0.4%
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $3,926,000 or 0.2% of net assets.
(d) A portion of the security sold on a delayed delivery basis.
(e) 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 $93,000 or 0.0% of net assets.
(f) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $520,000.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost (000s) |
| NJOY, Inc. | 6/7/13 - 2/14/14 | $808 |
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 | $120 |
| Fidelity Securities Lending Cash Central Fund | 143 |
| Total | $263 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2016, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | | | | |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Consumer Discretionary | $297,004 | $205,023 | $91,888 | $93 |
| Consumer Staples | 284,293 | 205,353 | 78,940 | -- |
| Energy | 71,475 | 63,044 | 8,431 | -- |
| Financials | 410,280 | 205,105 | 205,175 | -- |
| Health Care | 350,990 | 198,148 | 152,842 | -- |
| Industrials | 120,332 | 98,041 | 22,291 | -- |
| Information Technology | 259,944 | 217,410 | 42,534 | -- |
| Materials | 75,522 | 67,597 | 7,925 | -- |
| Telecommunication Services | 51,686 | 12,897 | 38,789 | -- |
| Government Obligations | 520 | -- | 520 | -- |
| Money Market Funds | 76,530 | 76,530 | -- | -- |
| Total Investments in Securities: | $1,998,576 | $1,349,148 | $649,335 | $93 |
| Derivative Instruments: | | | | |
| Liabilities | | | | |
| Futures Contracts | $(527) | $(527) | $-- | $-- |
| Total Liabilities | $(527) | $(527) | $-- | $-- |
| Total Derivative Instruments: | $(527) | $(527) | $-- | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2016. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
| Transfers | Total (000s) |
| Level 1 to Level 2 | $26,947 |
| Level 2 to Level 1 | $200,408 |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of April 30, 2016. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
| Primary Risk Exposure / Derivative Type | Value |
| (Amounts in thousands) | Asset | Liability |
| Equity Risk | | |
| Futures Contracts(a) | $0 | $(527) |
| Total Equity Risk | 0 | (527) |
| Total Value of Derivatives | $0 | $(527) |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin for derivative instruments, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | | April 30, 2016 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $23,407) — See accompanying schedule:
Unaffiliated issuers (cost $1,634,636) | $1,922,046 | |
| Fidelity Central Funds (cost $76,530) | 76,530 | |
| Total Investments (cost $1,711,166) | | $1,998,576 |
| Foreign currency held at value (cost $293) | | 293 |
| Receivable for investments sold | | |
| Regular delivery | | 5,501 |
| Delayed delivery | | 508 |
| Receivable for fund shares sold | | 1,748 |
| Dividends receivable | | 10,340 |
| Distributions receivable from Fidelity Central Funds | | 78 |
| Prepaid expenses | | 1 |
| Other receivables | | 198 |
| Total assets | | 2,017,243 |
| Liabilities | | |
| Payable for investments purchased | $5,254 | |
| Payable for fund shares redeemed | 2,844 | |
| Accrued management fee | 1,126 | |
| Distribution and service plan fees payable | 431 | |
| Payable for daily variation margin for derivative instruments | 199 | |
| Other affiliated payables | 424 | |
| Other payables and accrued expenses | 204 | |
| Collateral on securities loaned, at value | 24,789 | |
| Total liabilities | | 35,271 |
| Net Assets | | $1,981,972 |
| Net Assets consist of: | | |
| Paid in capital | | $4,321,905 |
| Undistributed net investment income | | 9,333 |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (2,636,280) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 287,014 |
| Net Assets | | $1,981,972 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($616,707 ÷ 32,029.5 shares) | | $19.25 |
| Maximum offering price per share (100/94.25 of $19.25) | | $20.42 |
| Class T: | | |
| Net Asset Value and redemption price per share ($246,458 ÷ 12,895.7 shares) | | $19.11 |
| Maximum offering price per share (100/96.50 of $19.11) | | $19.80 |
| Class B: | | |
| Net Asset Value and offering price per share ($7,411 ÷ 399.8 shares)(a) | | $18.54 |
| Class C: | | |
| Net Asset Value and offering price per share ($228,358 ÷ 12,393.1 shares)(a) | | $18.43 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($794,709 ÷ 40,606.7 shares) | | $19.57 |
| Class Z: | | |
| Net Asset Value, offering price and redemption price per share ($88,329 ÷ 4,515.7 shares) | | $19.56 |
(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.
Statement of Operations
| Amounts in thousands | | Six months ended April 30, 2016 (Unaudited) |
| Investment Income | | |
| Dividends | | $23,035 |
| Interest | | 4 |
| Income from Fidelity Central Funds | | 263 |
| Income before foreign taxes withheld | | 23,302 |
| Less foreign taxes withheld | | (1,688) |
| Total income | | 21,614 |
| Expenses | | |
| Management fee | $6,583 | |
| Transfer agent fees | 2,108 | |
| Distribution and service plan fees | 2,613 | |
| Accounting and security lending fees | 432 | |
| Custodian fees and expenses | 116 | |
| Independent trustees' compensation | 4 | |
| Registration fees | 106 | |
| Audit | 60 | |
| Legal | 6 | |
| Miscellaneous | 5 | |
| Total expenses before reductions | 12,033 | |
| Expense reductions | (21) | 12,012 |
| Net investment income (loss) | | 9,602 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (12,719) | |
| Foreign currency transactions | 176 | |
| Futures contracts | (468) | |
| Total net realized gain (loss) | | (13,011) |
Change in net unrealized appreciation (depreciation) on:
Investment securities (net of increase in deferred foreign taxes of $21) | (66,550) | |
| Assets and liabilities in foreign currencies | 113 | |
| Futures contracts | (966) | |
| Total change in net unrealized appreciation (depreciation) | | (67,403) |
| Net gain (loss) | | (80,414) |
| Net increase (decrease) in net assets resulting from operations | | $(70,812) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Six months ended April 30, 2016 (Unaudited) | Year ended October 31, 2015 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $9,602 | $14,320 |
| Net realized gain (loss) | (13,011) | 39,040 |
| Change in net unrealized appreciation (depreciation) | (67,403) | 18,118 |
| Net increase (decrease) in net assets resulting from operations | (70,812) | 71,478 |
| Distributions to shareholders from net investment income | (12,902) | (18,738) |
| Distributions to shareholders from net realized gain | – | (2,141) |
| Total distributions | (12,902) | (20,879) |
| Share transactions - net increase (decrease) | 40,304 | 63,265 |
| Redemption fees | 14 | 27 |
| Total increase (decrease) in net assets | (43,396) | 113,891 |
| Net Assets | | |
| Beginning of period | 2,025,368 | 1,911,477 |
| End of period (including undistributed net investment income of $9,333 and undistributed net investment income of $12,633, respectively) | $1,981,972 | $2,025,368 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Diversified International Fund Class A
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.10 | $19.56 | $19.47 | $15.63 | $14.61 | $15.63 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .09 | .15 | .27B | .19 | .18 | .22C |
| Net realized and unrealized gain (loss) | (.81) | .61 | .17 | 3.92 | 1.03 | (1.01) |
| Total from investment operations | (.72) | .76 | .44 | 4.11 | 1.21 | (.79) |
| Distributions from net investment income | (.13) | (.20) | (.18) | (.21) | (.19) | (.20) |
| Distributions from net realized gain | – | (.02) | (.17) | (.06) | – | (.03) |
| Total distributions | (.13) | (.22) | (.35) | (.27) | (.19) | (.23) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – | – |
| Net asset value, end of period | $19.25 | $20.10 | $19.56 | $19.47 | $15.63 | $14.61 |
| Total ReturnE,F,G | (3.62)% | 3.93% | 2.28% | 26.69% | 8.47% | (5.15)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.23%J | 1.22% | 1.26% | 1.31% | 1.32% | 1.31% |
| Expenses net of fee waivers, if any | 1.23%J | 1.22% | 1.26% | 1.30% | 1.32% | 1.31% |
| Expenses net of all reductions | 1.23%J | 1.21% | 1.26% | 1.28% | 1.31% | 1.29% |
| Net investment income (loss) | .98%J | .75% | 1.34%B | 1.08% | 1.20% | 1.38%C |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $617 | $662 | $693 | $756 | $762 | $916 |
| Portfolio turnover rateK | 24%J | 34% | 40% | 50% | 34% | 48% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .85%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .98%.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Diversified International Fund Class T
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $19.92 | $19.38 | $19.30 | $15.49 | $14.46 | $15.47 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .07 | .10 | .21B | .14 | .14 | .18C |
| Net realized and unrealized gain (loss) | (.81) | .61 | .18 | 3.89 | 1.03 | (.99) |
| Total from investment operations | (.74) | .71 | .39 | 4.03 | 1.17 | (.81) |
| Distributions from net investment income | (.07) | (.15) | (.14) | (.16) | (.14) | (.16) |
| Distributions from net realized gain | – | (.02) | (.17) | (.06) | – | (.03) |
| Total distributions | (.07) | (.17) | (.31) | (.22) | (.14) | (.20)D |
| Redemption fees added to paid in capitalA,E | – | – | – | – | – | – |
| Net asset value, end of period | $19.11 | $19.92 | $19.38 | $19.30 | $15.49 | $14.46 |
| Total ReturnF,G,H | (3.73)% | 3.67% | 2.04% | 26.37% | 8.17% | (5.35)% |
| Ratios to Average Net AssetsI,J | | | | | | |
| Expenses before reductions | 1.49%K | 1.48% | 1.51% | 1.55% | 1.58% | 1.55% |
| Expenses net of fee waivers, if any | 1.49%K | 1.48% | 1.51% | 1.55% | 1.58% | 1.55% |
| Expenses net of all reductions | 1.49%K | 1.47% | 1.51% | 1.53% | 1.57% | 1.53% |
| Net investment income (loss) | .72%K | .49% | 1.09%B | .83% | .94% | 1.14%C |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $246 | $271 | $284 | $319 | $304 | $404 |
| Portfolio turnover rateL | 24%K | 34% | 40% | 50% | 34% | 48% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .60%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .74%.
D 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.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the sales charges.
I 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.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Diversified International Fund Class B
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $19.31 | $18.75 | $18.65 | $14.95 | $13.91 | $14.91 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .01 | (.01) | .10B | .05 | .06 | .09C |
| Net realized and unrealized gain (loss) | (.78) | .59 | .17 | 3.77 | 1.00 | (.96) |
| Total from investment operations | (.77) | .58 | .27 | 3.82 | 1.06 | (.87) |
| Distributions from net investment income | – | – | – | (.06) | (.02) | (.10) |
| Distributions from net realized gain | – | (.02) | (.17) | (.06) | – | (.03) |
| Total distributions | – | (.02) | (.17) | (.12) | (.02) | (.13) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – | – |
| Net asset value, end of period | $18.54 | $19.31 | $18.75 | $18.65 | $14.95 | $13.91 |
| Total ReturnE,F,G | (3.99)% | 3.11% | 1.45% | 25.72% | 7.64% | (5.89)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 2.05%J | 2.05% | 2.07% | 2.08% | 2.08% | 2.08% |
| Expenses net of fee waivers, if any | 2.05%J | 2.05% | 2.07% | 2.08% | 2.08% | 2.08% |
| Expenses net of all reductions | 2.05%J | 2.04% | 2.07% | 2.06% | 2.07% | 2.06% |
| Net investment income (loss) | .16%J | (.08)% | .53%B | .30% | .44% | .61%C |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $7 | $11 | $19 | $36 | $59 | $94 |
| Portfolio turnover rateK | 24%J | 34% | 40% | 50% | 34% | 48% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .04%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .21%.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Diversified International Fund Class C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $19.19 | $18.68 | $18.63 | $14.97 | $13.95 | $14.95 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .02 | – | .11B | .06 | .06 | .10C |
| Net realized and unrealized gain (loss) | (.78) | .59 | .18 | 3.75 | 1.01 | (.96) |
| Total from investment operations | (.76) | .59 | .29 | 3.81 | 1.07 | (.86) |
| Distributions from net investment income | – | (.06) | (.07) | (.09) | (.05) | (.11) |
| Distributions from net realized gain | – | (.02) | (.17) | (.06) | – | (.03) |
| Total distributions | – | (.08) | (.24) | (.15) | (.05) | (.14) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – | – |
| Net asset value, end of period | $18.43 | $19.19 | $18.68 | $18.63 | $14.97 | $13.95 |
| Total ReturnE,F,G | (3.96)% | 3.15% | 1.58% | 25.71% | 7.71% | (5.83)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.98%J | 1.97% | 2.00% | 2.04% | 2.06% | 2.05% |
| Expenses net of fee waivers, if any | 1.98%J | 1.97% | 2.00% | 2.04% | 2.06% | 2.05% |
| Expenses net of all reductions | 1.98%J | 1.96% | 2.00% | 2.01% | 2.05% | 2.03% |
| Net investment income (loss) | .23%J | - %K | .60%B | .35% | .46% | .64%C |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $228 | $251 | $243 | $264 | $246 | $302 |
| Portfolio turnover rateL | 24%J | 34% | 40% | 50% | 34% | 48% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .11%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .24%.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H 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.
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 Annualized
K Amount represents less than .005%.
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Diversified International Fund Class I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.46 | $19.91 | $19.80 | $15.90 | $14.87 | $15.90 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .12 | .21 | .33B | .24 | .23 | .28C |
| Net realized and unrealized gain (loss) | (.82) | .63 | .18 | 3.98 | 1.05 | (1.03) |
| Total from investment operations | (.70) | .84 | .51 | 4.22 | 1.28 | (.75) |
| Distributions from net investment income | (.19) | (.26) | (.23) | (.26) | (.25) | (.25) |
| Distributions from net realized gain | – | (.02) | (.17) | (.06) | – | (.03) |
| Total distributions | (.19) | (.29)D | (.40) | (.32) | (.25) | (.28) |
| Redemption fees added to paid in capitalA,E | – | – | – | – | – | – |
| Net asset value, end of period | $19.57 | $20.46 | $19.91 | $19.80 | $15.90 | $14.87 |
| Total ReturnF,G | (3.48)% | 4.24% | 2.60% | 27.03% | 8.83% | (4.85)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | .95%J | .94% | .97% | .99% | 1.00% | .99% |
| Expenses net of fee waivers, if any | .95%J | .94% | .97% | .99% | 1.00% | .99% |
| Expenses net of all reductions | .95%J | .94% | .97% | .97% | .99% | .97% |
| Net investment income (loss) | 1.26%J | 1.03% | 1.63%B | 1.39% | 1.52% | 1.70%C |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $795 | $747 | $648 | $636 | $546 | $723 |
| Portfolio turnover rateK | 24%J | 34% | 40% | 50% | 34% | 48% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.14%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.30%.
D Total distributions of $.29 per share is comprised of distributions from net investment income of $.263 and distributions from net realized gain of $.022 per share.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Diversified International Fund Class Z
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | |
| | 2016 | 2015 | 2014 | 2013 A |
| Selected Per–Share Data | | | | |
| Net asset value, beginning of period | $20.46 | $19.93 | $19.81 | $18.54 |
| Income from Investment Operations | | | | |
| Net investment income (loss)B | .14 | .24 | .36C | .03 |
| Net realized and unrealized gain (loss) | (.82) | .61 | .19 | 1.24 |
| Total from investment operations | (.68) | .85 | .55 | 1.27 |
| Distributions from net investment income | (.22) | (.30) | (.26) | – |
| Distributions from net realized gain | – | (.02) | (.17) | – |
| Total distributions | (.22) | (.32) | (.43) | – |
| Redemption fees added to paid in capitalB | –D | –D | –D | – |
| Net asset value, end of period | $19.56 | $20.46 | $19.93 | $19.81 |
| Total ReturnE,F | (3.38)% | 4.34% | 2.81% | 6.85% |
| Ratios to Average Net AssetsG,H | | | | |
| Expenses before reductions | .79%I | .79% | .81% | .83%I |
| Expenses net of fee waivers, if any | .79%I | .79% | .81% | .83%I |
| Expenses net of all reductions | .79%I | .78% | .81% | .80%I |
| Net investment income (loss) | 1.42%I | 1.18% | 1.79%C | .77%I |
| Supplemental Data | | | | |
| Net assets, end of period (000 omitted) | $88,329 | $82,925 | $24,050 | $107 |
| Portfolio turnover rateJ | 24%I | 34% | 40% | 50% |
A For the period August 13, 2013 (commencement of sale of shares) to October 31, 2013.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.30%.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2016
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor Diversified International Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Class I and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a maximum holding period of seven years from the initial date of purchase.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective on or about July 1, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the other Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of April 30, 2016, including information on transfers between Levels 1 and 2 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, futures transactions, passive foreign investment companies (PFIC), market discount, 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 | $396,652 |
| Gross unrealized depreciation | (127,366) |
| Net unrealized appreciation (depreciation) on securities | $269,286 |
| Tax cost | $1,729,290 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2017 | $(2,606,019) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
| Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment.
|
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
During the period the Fund recognized net realized gain (loss) of $(468) and a change in net unrealized appreciation (depreciation) of $(966) related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $316,532 and $227,752, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .424% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .67% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
| Class A | -% | .25% | $778 | $– |
| Class T | .25% | .25% | 626 | – |
| Class B | .75% | .25% | 45 | 34 |
| Class C | .75% | .25% | 1,164 | 70 |
| | | | $2,613 | $104 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $43 |
| Class T | 11 |
| Class B(a) | 1 |
| Class C(a) | 6 |
| | $61 |
(a) When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| | Amount | % of
Class-Level Average
Net Assets(a) |
| Class A | $728 | .23 |
| Class T | 307 | .24 |
| Class B | 14 | .30 |
| Class C | 275 | .24 |
| Class I | 764 | .20 |
| Class Z | 20 | .05 |
| | $2,108 | |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $143. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $14 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $7.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| From net investment income | | |
| Class A | $4,188 | $7,030 |
| Class T | 941 | 2,091 |
| Class C | – | 706 |
| Class I | 6,836 | 8,555 |
| Class Z | 937 | 356 |
| Total | $12,902 | $18,738 |
| From net realized gain | | |
| Class A | $– | $727 |
| Class T | – | 317 |
| Class B | – | 21 |
| Class C | – | 280 |
| Class I | – | 770 |
| Class Z | – | 26 |
| Total | $– | $2,141 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| Class A | | | | |
| Shares sold | 2,734 | 6,331 | $52,492 | $128,828 |
| Reinvestment of distributions | 200 | 378 | 3,990 | 7,410 |
| Shares redeemed | (3,816) | (9,229) | (72,623) | (183,333) |
| Net increase (decrease) | (882) | (2,520) | $(16,141) | $(47,095) |
| Class T | | | | |
| Shares sold | 524 | 1,574 | $9,870 | $31,817 |
| Reinvestment of distributions | 46 | 120 | 909 | 2,332 |
| Shares redeemed | (1,301) | (2,697) | (24,515) | (53,711) |
| Net increase (decrease) | (731) | (1,003) | $(13,736) | $(19,562) |
| Class B | | | | |
| Shares sold | 3 | 20 | $56 | $400 |
| Reinvestment of distributions | – | 1 | – | 19 |
| Shares redeemed | (178) | (467) | (3,252) | (9,077) |
| Net increase (decrease) | (175) | (446) | $(3,196) | $(8,658) |
| Class C | | | | |
| Shares sold | 591 | 2,044 | $10,857 | $40,003 |
| Reinvestment of distributions | – | 44 | – | 826 |
| Shares redeemed | (1,284) | (2,036) | (23,333) | (39,156) |
| Net increase (decrease) | (693) | 52 | $(12,476) | $1,673 |
| Class I | | | | |
| Shares sold | 10,468 | 13,465 | $200,204 | $273,323 |
| Reinvestment of distributions | 284 | 415 | 5,760 | 8,253 |
| Shares redeemed | (6,665) | (9,912) | (129,454) | (200,987) |
| Net increase (decrease) | 4,087 | 3,968 | $76,510 | $80,589 |
| Class Z | | | | |
| Shares sold | 700 | 3,275 | $13,837 | $65,174 |
| Reinvestment of distributions | 46 | 19 | 937 | 382 |
| Shares redeemed | (282) | (449) | (5,431) | (9,238) |
| Net increase (decrease) | 464 | 2,845 | $9,343 | $56,318 |
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.
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, 2015 to April 30, 2016).
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.
| | Annualized Expense Ratio-A | Beginning
Account Value
November 1, 2015 | Ending
Account Value
April 30, 2016 | Expenses Paid
During Period-B
November 1, 2015
to April 30, 2016 |
| Class A | 1.23% | | | |
| Actual | | $1,000.00 | $963.80 | $6.01 |
| Hypothetical-C | | $1,000.00 | $1,018.75 | $6.17 |
| Class T | 1.49% | | | |
| Actual | | $1,000.00 | $962.70 | $7.27 |
| Hypothetical-C | | $1,000.00 | $1,017.45 | $7.47 |
| Class B | 2.05% | | | |
| Actual | | $1,000.00 | $960.10 | $9.99 |
| Hypothetical-C | | $1,000.00 | $1,014.67 | $10.27 |
| Class C | 1.98% | | | |
| Actual | | $1,000.00 | $960.40 | $9.65 |
| Hypothetical-C | | $1,000.00 | $1,015.02 | $9.92 |
| Class I | .95% | | | |
| Actual | | $1,000.00 | $965.20 | $4.64 |
| Hypothetical-C | | $1,000.00 | $1,020.14 | $4.77 |
| Class Z | .79% | | | |
| Actual | | $1,000.00 | $966.20 | $3.86 |
| Hypothetical-C | | $1,000.00 | $1,020.93 | $3.97 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
C 5% return per year before expenses
ADIFZ-SANN-0616
1.9585029.102
Fidelity Advisor® International Capital Appreciation Fund
Class I
Semi-Annual Report April 30, 2016 |
|
Contents
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. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Five Stocks as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Nestle SA (Switzerland, Food Products) | 1.8 | 0.0 |
| British American Tobacco PLC (United Kingdom) (United Kingdom, Tobacco) | 1.2 | 0.0 |
| Unilever PLC (United Kingdom, Personal Products) | 1.2 | 0.0 |
| Novo Nordisk A/S Series B sponsored ADR (Denmark, Pharmaceuticals) | 1.1 | 1.1 |
| Tencent Holdings Ltd. (Cayman Islands, Internet Software & Services) | 1.1 | 1.0 |
| | 6.4 | |
Top Five Market Sectors as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Information Technology | 18.7 | 17.2 |
| Consumer Staples | 16.8 | 4.3 |
| Industrials | 14.8 | 17.5 |
| Consumer Discretionary | 14.4 | 23.4 |
| Health Care | 11.6 | 16.9 |
Top Five Countries as of April 30, 2016
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| United States of America | 20.6 | 18.4 |
| United Kingdom | 14.6 | 17.2 |
| Japan | 9.4 | 6.5 |
| Germany | 8.8 | 6.4 |
| Ireland | 4.4 | 4.2 |
Percentages are adjusted for the effect of futures contracts, if applicable.
Asset Allocation (% of fund's net assets)
| As of April 30, 2016 |
| | Stocks | 97.2% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 2.8% |
| As of October 31, 2015 |
| | Stocks | 98.7% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 1.3% |
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments April 30, 2016 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 96.8% | | | |
| | | Shares | Value |
| Australia - 3.1% | | | |
| Amcor Ltd. (a) | | 129,219 | $1,513,076 |
| CSL Ltd. | | 20,646 | 1,651,135 |
| Ramsay Health Care Ltd. | | 26,314 | 1,299,510 |
| realestate.com.au Ltd. | | 29,111 | 1,127,091 |
| Sydney Airport unit | | 234,084 | 1,212,083 |
| Transurban Group unit | | 157,645 | 1,388,041 |
|
| TOTAL AUSTRALIA | | | 8,190,936 |
|
| Bailiwick of Jersey - 1.7% | | | |
| Experian PLC | | 83,800 | 1,531,779 |
| Wolseley PLC | | 24,084 | 1,348,995 |
| WPP PLC | | 70,100 | 1,637,717 |
|
| TOTAL BAILIWICK OF JERSEY | | | 4,518,491 |
|
| Belgium - 1.1% | | | |
| Anheuser-Busch InBev SA NV | | 22,820 | 2,824,657 |
| Bermuda - 0.9% | | | |
| Axalta Coating Systems (a) | | 44,060 | 1,254,388 |
| Markit Ltd. (a) | | 35,600 | 1,242,084 |
|
| TOTAL BERMUDA | | | 2,496,472 |
|
| Canada - 2.2% | | | |
| Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | | 30,560 | 1,339,603 |
| Canadian National Railway Co. | | 30,070 | 1,851,605 |
| CCL Industries, Inc. Class B | | 7,390 | 1,353,194 |
| Constellation Software, Inc. | | 3,510 | 1,371,717 |
|
| TOTAL CANADA | | | 5,916,119 |
|
| Cayman Islands - 2.4% | | | |
| Alibaba Group Holding Ltd. sponsored ADR (a) | | 24,130 | 1,856,562 |
| Baidu.com, Inc. sponsored ADR (a) | | 8,260 | 1,604,918 |
| Tencent Holdings Ltd. | | 139,600 | 2,840,625 |
|
| TOTAL CAYMAN ISLANDS | | | 6,302,105 |
|
| Denmark - 1.6% | | | |
| Coloplast A/S Series B | | 16,830 | 1,260,828 |
| Novo Nordisk A/S Series B sponsored ADR | | 52,780 | 2,944,596 |
|
| TOTAL DENMARK | | | 4,205,424 |
|
| Finland - 0.5% | | | |
| Sampo Oyj (A Shares) | | 33,600 | 1,467,001 |
| France - 3.4% | | | |
| Capgemini SA | | 14,900 | 1,391,003 |
| Dassault Systemes SA | | 16,900 | 1,321,697 |
| Essilor International SA | | 11,840 | 1,532,663 |
| L'Oreal SA (b) | | 10,100 | 1,832,475 |
| Sodexo SA | | 12,460 | 1,258,235 |
| VINCI SA | | 23,500 | 1,755,522 |
|
| TOTAL FRANCE | | | 9,091,595 |
|
| Germany - 8.4% | | | |
| adidas AG | | 13,700 | 1,766,377 |
| Axel Springer Verlag AG | | 23,000 | 1,284,151 |
| Bayer AG | | 23,520 | 2,713,356 |
| CTS Eventim AG | | 38,021 | 1,331,765 |
| Fresenius Medical Care AG & Co. KGaA | | 16,100 | 1,401,297 |
| Fresenius SE & Co. KGaA | | 23,600 | 1,716,512 |
| Henkel AG & Co. KGaA | | 16,213 | 1,647,245 |
| ProSiebenSat.1 Media AG | | 26,590 | 1,355,495 |
| SAP AG | | 30,142 | 2,364,973 |
| Scout24 Holding GmbH (a) | | 37,200 | 1,363,706 |
| Stroer Out-of-Home Media AG (b) | | 25,800 | 1,270,318 |
| Symrise AG | | 20,500 | 1,358,178 |
| United Internet AG | | 26,889 | 1,312,700 |
| Wirecard AG (b) | | 35,000 | 1,511,495 |
|
| TOTAL GERMANY | | | 22,397,568 |
|
| Hong Kong - 1.4% | | | |
| AIA Group Ltd. | | 403,600 | 2,415,387 |
| Techtronic Industries Co. Ltd. | | 333,500 | 1,250,181 |
|
| TOTAL HONG KONG | | | 3,665,568 |
|
| India - 2.9% | | | |
| Amara Raja Batteries Ltd. | | 79,686 | 1,146,666 |
| Asian Paints India Ltd. | | 94,690 | 1,234,845 |
| GlaxoSmithKline Consumer Healthcare Ltd. (a) | | 12,839 | 1,139,913 |
| HDFC Bank Ltd. (a) | | 58,721 | 1,193,612 |
| Housing Development Finance Corp. Ltd. | | 99,724 | 1,634,080 |
| Tata Consultancy Services Ltd. | | 37,398 | 1,427,503 |
|
| TOTAL INDIA | | | 7,776,619 |
|
| Indonesia - 0.5% | | | |
| PT Bank Central Asia Tbk | | 1,359,800 | 1,345,571 |
| Ireland - 4.4% | | | |
| Accenture PLC Class A | | 11,110 | 1,254,541 |
| Allegion PLC | | 19,050 | 1,246,823 |
| Allergan PLC (a) | | 5,860 | 1,269,042 |
| CRH PLC | | 56,100 | 1,632,673 |
| Kerry Group PLC Class A | | 14,120 | 1,259,010 |
| Kingspan Group PLC (Ireland) | | 52,760 | 1,389,495 |
| Medtronic PLC | | 15,680 | 1,241,072 |
| Paddy Power PLC (Ireland) | | 10,862 | 1,455,813 |
| Ryanair Holdings PLC sponsored ADR | | 14,249 | 1,153,457 |
|
| TOTAL IRELAND | | | 11,901,926 |
|
| Isle of Man - 0.5% | | | |
| Playtech Ltd. | | 110,196 | 1,295,349 |
| Israel - 0.5% | | | |
| Frutarom Industries Ltd. | | 24,300 | 1,245,420 |
| Italy - 1.0% | | | |
| Atlantia SpA | | 51,388 | 1,431,033 |
| Recordati SpA | | 48,021 | 1,220,149 |
|
| TOTAL ITALY | | | 2,651,182 |
|
| Japan - 9.4% | | | |
| Astellas Pharma, Inc. | | 126,400 | 1,704,200 |
| Daito Trust Construction Co. Ltd. | | 9,400 | 1,329,463 |
| Dentsu, Inc. | | 29,900 | 1,519,189 |
| Hoya Corp. | | 37,600 | 1,439,865 |
| Japan Tobacco, Inc. | | 45,500 | 1,859,036 |
| Kansai Paint Co. Ltd. | | 76,300 | 1,334,461 |
| Kao Corp. | | 28,900 | 1,598,661 |
| KDDI Corp. | | 74,000 | 2,131,624 |
| Keyence Corp. | | 2,897 | 1,736,442 |
| Misumi Group, Inc. | | 85,700 | 1,183,498 |
| Nippon Paint Holdings Co. Ltd. | | 52,100 | 1,367,984 |
| Nippon Telegraph & Telephone Corp. | | 39,000 | 1,745,263 |
| OBIC Co. Ltd. | | 23,700 | 1,245,694 |
| Olympus Corp. | | 35,200 | 1,371,273 |
| Sundrug Co. Ltd. | | 15,900 | 1,129,787 |
| Tsuruha Holdings, Inc. | | 12,500 | 1,198,945 |
| Unicharm Corp. | | 59,400 | 1,227,862 |
|
| TOTAL JAPAN | | | 25,123,247 |
|
| Korea (South) - 0.5% | | | |
| LG Household & Health Care Ltd. | | 1,617 | 1,421,275 |
| Luxembourg - 0.5% | | | |
| Eurofins Scientific SA | | 3,620 | 1,343,214 |
| Mexico - 1.9% | | | |
| Grupo Aeroportuario del Pacifico S.A.B. de CV Series B | | 141,500 | 1,333,195 |
| Grupo Aeroportuario del Sureste S.A.B. de CV Series B | | 80,845 | 1,241,528 |
| Grupo Aeroportuario Norte S.A.B. de CV | | 221,003 | 1,278,902 |
| Megacable Holdings S.A.B. de CV unit | | 265,400 | 1,225,601 |
|
| TOTAL MEXICO | | | 5,079,226 |
|
| Netherlands - 1.1% | | | |
| Koninklijke Ahold NV | | 62,536 | 1,360,530 |
| RELX NV | | 97,378 | 1,634,072 |
|
| TOTAL NETHERLANDS | | | 2,994,602 |
|
| Philippines - 2.3% | | | |
| Ayala Corp. | | 78,460 | 1,286,120 |
| Ayala Land, Inc. | | 1,648,100 | 1,214,131 |
| GT Capital Holdings, Inc. | | 40,490 | 1,176,780 |
| SM Investments Corp. | | 62,515 | 1,254,686 |
| SM Prime Holdings, Inc. | | 2,558,000 | 1,231,821 |
|
| TOTAL PHILIPPINES | | | 6,163,538 |
|
| South Africa - 0.8% | | | |
| Naspers Ltd. Class N | | 14,980 | 2,055,407 |
| Spain - 1.6% | | | |
| Aena SA (a) | | 10,030 | 1,430,438 |
| Amadeus IT Holding SA Class A | | 34,960 | 1,590,830 |
| Grifols SA ADR | | 82,310 | 1,293,913 |
|
| TOTAL SPAIN | | | 4,315,181 |
|
| Sweden - 1.7% | | | |
| ASSA ABLOY AB (B Shares) | | 79,818 | 1,673,798 |
| Hexagon AB (B Shares) | | 37,000 | 1,475,310 |
| Svenska Cellulosa AB (SCA) (B Shares) | | 44,200 | 1,391,974 |
|
| TOTAL SWEDEN | | | 4,541,082 |
|
| Switzerland - 3.9% | | | |
| Geberit AG (Reg.) | | 3,680 | 1,412,847 |
| Givaudan SA | | 705 | 1,388,982 |
| Nestle SA | | 64,949 | 4,847,770 |
| Partners Group Holding AG | | 3,350 | 1,379,391 |
| Sika AG | | 354 | 1,506,705 |
|
| TOTAL SWITZERLAND | | | 10,535,695 |
|
| Taiwan - 1.0% | | | |
| Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | | 115,880 | 2,733,609 |
| Thailand - 0.4% | | | |
| Airports of Thailand PCL (For. Reg.) | | 102,800 | 1,153,998 |
| United Kingdom - 14.6% | | | |
| Aon PLC | | 11,750 | 1,235,160 |
| Auto Trader Group PLC | | 258,100 | 1,414,211 |
| British American Tobacco PLC (United Kingdom) | | 51,500 | 3,140,063 |
| Bunzl PLC | | 45,400 | 1,352,595 |
| Compass Group PLC | | 89,241 | 1,589,238 |
| Dignity PLC | | 34,967 | 1,246,646 |
| Diploma PLC | | 107,590 | 1,149,956 |
| Essentra PLC | | 103,500 | 1,227,980 |
| Halma PLC | | 92,200 | 1,201,685 |
| Hargreaves Lansdown PLC | | 66,400 | 1,247,682 |
| Howden Joinery Group PLC | | 210,303 | 1,517,984 |
| Imperial Tobacco Group PLC | | 38,333 | 2,082,742 |
| Intertek Group PLC | | 29,500 | 1,403,895 |
| ITV PLC | | 424,000 | 1,395,176 |
| London Stock Exchange Group PLC | | 33,863 | 1,342,363 |
| Moneysupermarket.com Group PLC | | 291,200 | 1,335,603 |
| Persimmon PLC | | 50,400 | 1,463,266 |
| Provident Financial PLC | | 31,000 | 1,319,915 |
| Prudential PLC | | 101,366 | 2,000,918 |
| Reckitt Benckiser Group PLC | | 22,130 | 2,155,880 |
| Rightmove PLC | | 22,430 | 1,264,405 |
| Sage Group PLC | | 145,100 | 1,255,116 |
| St. James's Place Capital PLC | | 104,419 | 1,322,798 |
| Unilever PLC | | 69,800 | 3,115,232 |
| Worldpay Group PLC (a) | | 366,200 | 1,428,110 |
|
| TOTAL UNITED KINGDOM | | | 39,208,619 |
|
| United States of America - 20.6% | | | |
| A.O. Smith Corp. | | 16,197 | 1,250,732 |
| Acuity Brands, Inc. | | 5,020 | 1,224,328 |
| Adobe Systems, Inc. (a) | | 12,800 | 1,206,016 |
| Alphabet, Inc. Class C | | 1,670 | 1,157,327 |
| Altria Group, Inc. | | 20,270 | 1,271,132 |
| Amazon.com, Inc. (a) | | 2,110 | 1,391,735 |
| Amphenol Corp. Class A | | 21,278 | 1,187,951 |
| AutoZone, Inc. (a) | | 1,441 | 1,102,696 |
| Cerner Corp. (a) | | 22,100 | 1,240,694 |
| Constellation Brands, Inc. Class A (sub. vtg.) | | 8,080 | 1,260,965 |
| Danaher Corp. | | 12,400 | 1,199,700 |
| Domino's Pizza, Inc. | | 8,610 | 1,040,777 |
| Ecolab, Inc. | | 11,400 | 1,310,772 |
| Equifax, Inc. | | 10,400 | 1,250,600 |
| Estee Lauder Companies, Inc. Class A | | 11,480 | 1,100,588 |
| Facebook, Inc. Class A (a) | | 11,000 | 1,293,380 |
| FactSet Research Systems, Inc. | | 8,180 | 1,233,135 |
| Fiserv, Inc. (a) | | 10,909 | 1,066,027 |
| FleetCor Technologies, Inc. (a) | | 8,520 | 1,317,874 |
| Gartner, Inc. Class A (a) | | 14,210 | 1,238,686 |
| HEICO Corp. Class A | | 26,580 | 1,360,364 |
| Henry Schein, Inc. (a) | | 6,350 | 1,071,245 |
| Home Depot, Inc. | | 9,140 | 1,223,755 |
| International Flavors & Fragrances, Inc. | | 10,460 | 1,249,656 |
| Kimberly-Clark Corp. | | 9,700 | 1,214,343 |
| MasterCard, Inc. Class A | | 13,700 | 1,328,763 |
| McGraw Hill Financial, Inc. | | 12,794 | 1,367,039 |
| Mettler-Toledo International, Inc. (a) | | 3,530 | 1,263,564 |
| Molson Coors Brewing Co. Class B | | 12,340 | 1,180,074 |
| Moody's Corp. | | 12,480 | 1,194,586 |
| MSCI, Inc. Class A | | 17,360 | 1,318,318 |
| NIKE, Inc. Class B | | 21,330 | 1,257,190 |
| O'Reilly Automotive, Inc. (a) | | 4,330 | 1,137,404 |
| Philip Morris International, Inc. | | 11,480 | 1,126,418 |
| PPG Industries, Inc. | | 11,440 | 1,262,862 |
| Reynolds American, Inc. | | 25,590 | 1,269,264 |
| ServiceMaster Global Holdings, Inc. (a) | | 33,380 | 1,279,122 |
| Sherwin-Williams Co. | | 4,120 | 1,183,717 |
| SS&C Technologies Holdings, Inc. | | 19,870 | 1,215,051 |
| Starbucks Corp. | | 20,550 | 1,155,527 |
| The Walt Disney Co. | | 12,643 | 1,305,516 |
| Thermo Fisher Scientific, Inc. | | 8,300 | 1,197,275 |
| TransDigm Group, Inc. (a) | | 5,050 | 1,150,744 |
| Verisk Analytics, Inc. (a) | | 15,710 | 1,218,782 |
| Visa, Inc. Class A | | 16,520 | 1,276,005 |
|
| TOTAL UNITED STATES OF AMERICA | | | 55,151,699 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $239,586,488) | | | 259,112,395 |
|
| Nonconvertible Preferred Stocks - 0.4% | | | |
| Germany - 0.4% | | | |
| Sartorius AG (non-vtg.) | | | |
| (Cost $809,758) | | 4,797 | 1,183,425 |
|
| Money Market Funds - 3.8% | | | |
| Fidelity Cash Central Fund, 0.38% (c) | | 6,134,825 | 6,134,825 |
| Fidelity Securities Lending Cash Central Fund, 0.42% (c)(d) | | 4,002,365 | 4,002,365 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $10,137,190) | | | 10,137,190 |
| TOTAL INVESTMENT PORTFOLIO - 101.0% | | | |
| (Cost $250,533,436) | | | 270,433,010 |
| NET OTHER ASSETS (LIABILITIES) - (1.0)% | | | (2,725,826) |
| NET ASSETS - 100% | | | $267,707,184 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
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 | $4,260 |
| Fidelity Securities Lending Cash Central Fund | 34,527 |
| Total | $38,787 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2016, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Consumer Discretionary | $38,277,444 | $32,281,119 | $5,996,325 | $-- |
| Consumer Staples | 44,995,444 | 27,837,440 | 17,158,004 | -- |
| Financials | 30,497,355 | 23,557,975 | 6,939,380 | -- |
| Health Care | 31,358,828 | 24,181,365 | 7,177,463 | -- |
| Industrials | 39,980,085 | 37,447,592 | 2,532,493 | -- |
| Information Technology | 49,884,884 | 41,697,150 | 8,187,734 | -- |
| Materials | 21,424,893 | 17,089,775 | 4,335,118 | -- |
| Telecommunication Services | 3,876,887 | -- | 3,876,887 | -- |
| Money Market Funds | 10,137,190 | 10,137,190 | -- | -- |
| Total Investments in Securities: | $270,433,010 | $214,229,606 | $56,203,404 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2016. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
| Transfers | Total |
| Level 1 to Level 2 | $1,135,724 |
| Level 2 to Level 1 | $20,318,074 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | April 30, 2016 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $3,729,287) — See accompanying schedule:
Unaffiliated issuers (cost $240,396,246) | $260,295,820 | |
| Fidelity Central Funds (cost $10,137,190) | 10,137,190 | |
| Total Investments (cost $250,533,436) | | $270,433,010 |
| Foreign currency held at value (cost $21,454) | | 21,859 |
| Receivable for fund shares sold | | 883,659 |
| Dividends receivable | | 972,570 |
| Distributions receivable from Fidelity Central Funds | | 21,531 |
| Prepaid expenses | | 105 |
| Receivable from investment adviser for expense reductions | | 6,558 |
| Other receivables | | 291,493 |
| Total assets | | 272,630,785 |
| Liabilities | | |
| Payable for fund shares redeemed | 525,361 | |
| Accrued management fee | 184,452 | |
| Distribution and service plan fees payable | 75,853 | |
| Other affiliated payables | 59,147 | |
| Other payables and accrued expenses | 76,423 | |
| Collateral on securities loaned, at value | 4,002,365 | |
| Total liabilities | | 4,923,601 |
| Net Assets | | $267,707,184 |
| Net Assets consist of: | | |
| Paid in capital | | $320,463,510 |
| Undistributed net investment income | | 206,906 |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (72,764,138) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 19,800,906 |
| Net Assets | | $267,707,184 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($94,008,554 ÷ 6,179,026 shares) | | $15.21 |
| Maximum offering price per share (100/94.25 of $15.21) | | $16.14 |
| Class T: | | |
| Net Asset Value and redemption price per share ($62,076,038 ÷ 4,168,775 shares) | | $14.89 |
| Maximum offering price per share (100/96.50 of $14.89) | | $15.43 |
| Class B: | | |
| Net Asset Value and offering price per share ($659,051 ÷ 48,227 shares)(a) | | $13.67 |
| Class C: | | |
| Net Asset Value and offering price per share ($36,437,936 ÷ 2,676,696 shares)(a) | | $13.61 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($74,525,605 ÷ 4,593,378 shares) | | $16.22 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| | | Six months ended April 30, 2016 (Unaudited) |
| Investment Income | | |
| Dividends | | $2,325,139 |
| Income from Fidelity Central Funds | | 38,787 |
| Income before foreign taxes withheld | | 2,363,926 |
| Less foreign taxes withheld | | (179,889) |
| Total income | | 2,184,037 |
| Expenses | | |
| Management fee | | |
| Basic fee | $889,864 | |
| Performance adjustment | 176,359 | |
| Transfer agent fees | 290,393 | |
| Distribution and service plan fees | 438,097 | |
| Accounting and security lending fees | 66,161 | |
| Custodian fees and expenses | 119,080 | |
| Independent trustees' compensation | 550 | |
| Registration fees | 54,243 | |
| Audit | 54,783 | |
| Legal | 1,197 | |
| Interest | 658 | |
| Miscellaneous | 850 | |
| Total expenses before reductions | 2,092,235 | |
| Expense reductions | (134,547) | 1,957,688 |
| Net investment income (loss) | | 226,349 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (7,255,430) | |
| Foreign currency transactions | (34,977) | |
| Total net realized gain (loss) | | (7,290,407) |
Change in net unrealized appreciation (depreciation) on:
Investment securities (net of increase in deferred foreign taxes of $5,776) | 5,542,067 | |
| Assets and liabilities in foreign currencies | 17,077 | |
| Total change in net unrealized appreciation (depreciation) | | 5,559,144 |
| Net gain (loss) | | (1,731,263) |
| Net increase (decrease) in net assets resulting from operations | | $(1,504,914) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended April 30, 2016 (Unaudited) | Year ended October 31, 2015 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $226,349 | $404,279 |
| Net realized gain (loss) | (7,290,407) | 3,579,204 |
| Change in net unrealized appreciation (depreciation) | 5,559,144 | 743,867 |
| Net increase (decrease) in net assets resulting from operations | (1,504,914) | 4,727,350 |
| Distributions to shareholders from net investment income | (237,879) | (176,462) |
| Share transactions - net increase (decrease) | 9,424,526 | 104,495,853 |
| Redemption fees | 6,243 | 14,747 |
| Total increase (decrease) in net assets | 7,687,976 | 109,061,488 |
| Net Assets | | |
| Beginning of period | 260,019,208 | 150,957,720 |
| End of period (including undistributed net investment income of $206,906 and undistributed net investment income of $218,436, respectively) | $267,707,184 | $260,019,208 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor International Capital Appreciation Fund Class A
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $15.25 | $14.77 | $13.96 | $11.25 | $10.21 | $10.85 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .02 | .05 | .06 | .07 | .08 | .08B |
| Net realized and unrealized gain (loss) | (.05) | .46 | .82 | 2.73 | 1.05 | (.53) |
| Total from investment operations | (.03) | .51 | .88 | 2.80 | 1.13 | (.45) |
| Distributions from net investment income | (.01) | (.03) | (.07) | (.09) | (.09) | (.08) |
| Distributions from net realized gain | – | – | – | – | (.01) | (.12) |
| Total distributions | (.01) | (.03) | (.07) | (.09) | (.09)C | (.19)D |
| Redemption fees added to paid in capitalA,E | – | – | – | – | – | – |
| Net asset value, end of period | $15.21 | $15.25 | $14.77 | $13.96 | $11.25 | $10.21 |
| Total ReturnF,G,H | (.21)% | 3.46% | 6.31% | 24.99% | 11.19% | (4.25)% |
| Ratios to Average Net AssetsI,J | | | | | | |
| Expenses before reductions | 1.56%K | 1.58% | 1.73% | 1.74% | 1.78% | 1.64% |
| Expenses net of fee waivers, if any | 1.45%K | 1.45% | 1.45% | 1.45% | 1.45% | 1.45% |
| Expenses net of all reductions | 1.44%K | 1.42% | 1.44% | 1.39% | 1.41% | 1.38% |
| Net investment income (loss) | .27%K | .30% | .42% | .58% | .73% | .74%B |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $94,009 | $89,753 | $51,567 | $49,797 | $40,624 | $40,364 |
| Portfolio turnover rateL | 178%K | 176% | 197% | 138% | 142% | 254% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .49%.
C Total distributions of $.09 per share is comprised of distributions from net investment income of $.085 and distributions from net realized gain of $.005 per share.
D 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.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the sales charges.
I 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.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor International Capital Appreciation Fund Class T
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $14.94 | $14.47 | $13.68 | $11.03 | $10.00 | $10.63 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | –B | .01 | .02 | .04 | .05 | .05C |
| Net realized and unrealized gain (loss) | (.05) | .46 | .81 | 2.66 | 1.04 | (.52) |
| Total from investment operations | (.05) | .47 | .83 | 2.70 | 1.09 | (.47) |
| Distributions from net investment income | – | – | (.04) | (.05) | (.06) | (.05) |
| Distributions from net realized gain | – | – | – | – | (.01) | (.12) |
| Total distributions | – | – | (.04) | (.05) | (.06)D | (.16)E |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $14.89 | $14.94 | $14.47 | $13.68 | $11.03 | $10.00 |
| Total ReturnF,G,H | (.33)% | 3.25% | 6.07% | 24.57% | 10.99% | (4.51)% |
| Ratios to Average Net AssetsI,J | | | | | | |
| Expenses before reductions | 1.81%K | 1.86% | 1.94% | 1.96% | 2.03% | 1.88% |
| Expenses net of fee waivers, if any | 1.70%K | 1.70% | 1.70% | 1.70% | 1.70% | 1.70% |
| Expenses net of all reductions | 1.69%K | 1.67% | 1.69% | 1.64% | 1.66% | 1.62% |
| Net investment income (loss) | .02%K | .05% | .17% | .33% | .48% | .49%C |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $62,076 | $60,293 | $58,454 | $60,152 | $53,835 | $59,914 |
| Portfolio turnover rateL | 178%K | 176% | 197% | 138% | 142% | 254% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .24%.
D Total distributions of $.06 per share is comprised of distributions from net investment income of $.056 and distributions from net realized gain of $.005 per share.
E 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.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Total returns do not include the effect of the sales charges.
I 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.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor International Capital Appreciation Fund Class B
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $13.75 | $13.38 | $12.68 | $10.22 | $9.26 | $9.84 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.03) | (.06) | (.04) | (.02) | –B | –B,C |
| Net realized and unrealized gain (loss) | (.05) | .43 | .74 | 2.48 | .96 | (.48) |
| Total from investment operations | (.08) | .37 | .70 | 2.46 | .96 | (.48) |
| Distributions from net investment income | – | – | – | – | – | (.01) |
| Distributions from net realized gain | – | – | – | – | – | (.09) |
| Total distributions | – | – | – | – | – | (.10) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $13.67 | $13.75 | $13.38 | $12.68 | $10.22 | $9.26 |
| Total ReturnD,E,F | (.58)% | 2.77% | 5.52% | 24.07% | 10.37% | (4.99)% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 2.37%I | 2.44% | 2.50% | 2.51% | 2.54% | 2.39% |
| Expenses net of fee waivers, if any | 2.20%I | 2.20% | 2.20% | 2.20% | 2.20% | 2.20% |
| Expenses net of all reductions | 2.20%I | 2.18% | 2.19% | 2.15% | 2.16% | 2.13% |
| Net investment income (loss) | (.48)%I | (.46)% | (.33)% | (.17)% | (.02)% | (.01)%C |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $659 | $1,061 | $1,577 | $2,228 | $2,745 | $4,241 |
| Portfolio turnover rateJ | 178%I | 176% | 197% | 138% | 142% | 254% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.26)%.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor International Capital Appreciation Fund Class C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $13.69 | $13.33 | $12.63 | $10.18 | $9.23 | $9.84 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.03) | (.06) | (.04) | (.02) | –B | –B,C |
| Net realized and unrealized gain (loss) | (.05) | .42 | .74 | 2.47 | .96 | (.49) |
| Total from investment operations | (.08) | .36 | .70 | 2.45 | .96 | (.49) |
| Distributions from net investment income | – | – | – | – | (.01) | (.01) |
| Distributions from net realized gain | – | – | – | – | (.01) | (.11) |
| Total distributions | – | – | – | – | (.01)D | (.12) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $13.61 | $13.69 | $13.33 | $12.63 | $10.18 | $9.23 |
| Total ReturnE,F,G | (.58)% | 2.70% | 5.54% | 24.07% | 10.41% | (5.07)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 2.31%J | 2.33% | 2.47% | 2.49% | 2.53% | 2.39% |
| Expenses net of fee waivers, if any | 2.20%J | 2.20% | 2.20% | 2.20% | 2.20% | 2.20% |
| Expenses net of all reductions | 2.19%J | 2.17% | 2.19% | 2.14% | 2.16% | 2.13% |
| Net investment income (loss) | (.48)%J | (.45)% | (.33)% | (.17)% | (.02)% | (.01)%C |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $36,438 | $36,491 | $20,910 | $21,334 | $18,090 | $19,619 |
| Portfolio turnover rateK | 178%J | 176% | 197% | 138% | 142% | 254% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.26)%.
D Total distributions of $.01 per share is comprised of distributions from net investment income of $.005 and distributions from net realized gain of $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor International Capital Appreciation Fund Class I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $16.28 | $15.75 | $14.87 | $11.99 | $10.87 | $11.54 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .04 | .09 | .10 | .11 | .11 | .12B |
| Net realized and unrealized gain (loss) | (.06) | .51 | .87 | 2.89 | 1.13 | (.57) |
| Total from investment operations | (.02) | .60 | .97 | 3.00 | 1.24 | (.45) |
| Distributions from net investment income | (.04) | (.07) | (.09) | (.12) | (.12) | (.11) |
| Distributions from net realized gain | – | – | – | – | (.01) | (.12) |
| Total distributions | (.04) | (.07) | (.09) | (.12) | (.12)C | (.22)D |
| Redemption fees added to paid in capitalA,E | – | – | – | – | – | – |
| Net asset value, end of period | $16.22 | $16.28 | $15.75 | $14.87 | $11.99 | $10.87 |
| Total ReturnF,G | (.13)% | 3.80% | 6.58% | 25.20% | 11.56% | (4.01)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.27%J | 1.27% | 1.38% | 1.39% | 1.48% | 1.35% |
| Expenses net of fee waivers, if any | 1.20%J | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% |
| Expenses net of all reductions | 1.19%J | 1.17% | 1.20% | 1.14% | 1.16% | 1.12% |
| Net investment income (loss) | .52%J | .55% | .67% | .83% | .98% | 1.00%B |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $74,526 | $72,421 | $18,449 | $7,768 | $4,568 | $4,335 |
| Portfolio turnover rateK | 178%J | 176% | 197% | 138% | 142% | 254% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividends, the ratio of net investment income (loss) to average net assets would have been .74%.
C Total distributions of $.12 per share is comprised of distributions from net investment income of $.115 and distributions from net realized gain of $.005 per share.
D 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.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2016
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 Class I shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a maximum holding period of seven years from the initial date of purchase. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective on or about July 1, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of April 30, 2016, including information on transfers between Levels 1 and 2 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), 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 | $22,726,834 |
| Gross unrealized depreciation | (4,271,634) |
| Net unrealized appreciation (depreciation) on securities | $18,455,200 |
| Tax cost | $251,977,810 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2016 | $(40,876,628) |
| 2017 | (23,967,872) |
| Total capital loss carryforward | $(64,844,500) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $231,743,226 and $226,308,855, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. 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 Class I of the Fund as compared to its benchmark index, the MSCI All Country World ex USA Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .84% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
| Class A | -% | .25% | $108,649 | $1,976 |
| Class T | .25% | .25% | 148,136 | – |
| Class B | .75% | .25% | 4,245 | 3,209 |
| Class C | .75% | .25% | 177,067 | 56,547 |
| | | | $438,097 | $61,732 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $13,766 |
| Class T | 4,714 |
| Class B(a) | 113 |
| Class C(a) | 3,424 |
| | $22,017 |
(a) When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| | Amount | % of
Class-Level Average
Net Assets(a) |
| Class A | $103,418 | .24 |
| Class T | 72,042 | .24 |
| Class B | 1,286 | .30 |
| Class C | 43,316 | .24 |
| Class I | 70,331 | .19 |
| | $ 290,393 | |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $973 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
| Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
| Borrower | $5,216,286 | .65% | $658 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $223 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $34,527. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
The investment adviser voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| | Expense
Limitations | Reimbursement |
| Class A | 1.45% | $47,026 |
| Class T | 1.70% | 33,393 |
| Class B | 2.20% | 725 |
| Class C | 2.20% | 20,247 |
| Class I | 1.20% | 23,411 |
| | | $124,802 |
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $8,790 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $955.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| From net investment income | | |
| Class A | $45,965 | $109,241 |
| Class I | 191,914 | 67,221 |
| Total | $237,879 | $176,462 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| Class A | | | | |
| Shares sold | 1,074,815 | 3,444,443 | $15,863,525 | $53,081,260 |
| Reinvestment of distributions | 2,811 | 6,822 | 43,093 | 102,609 |
| Shares redeemed | (782,715) | (1,059,333) | (11,598,267) | (16,101,792) |
| Net increase (decrease) | 294,911 | 2,391,932 | $4,308,351 | $37,082,077 |
| Class T | | | | |
| Shares sold | 507,039 | 689,717 | $7,323,288 | $10,301,883 |
| Shares redeemed | (373,948) | (694,037) | (5,380,558) | (10,349,650) |
| Net increase (decrease) | 133,091 | (4,320) | $1,942,730 | $(47,767) |
| Class B | | | | |
| Shares sold | 3,366 | 10,699 | $43,828 | $149,278 |
| Shares redeemed | (32,311) | (51,403) | (429,792) | (707,021) |
| Net increase (decrease) | (28,945) | (40,704) | $(385,964) | $(557,743) |
| Class C | | | | |
| Shares sold | 339,395 | 1,456,550 | $4,517,716 | $20,251,093 |
| Shares redeemed | (327,782) | (360,397) | (4,282,557) | (4,903,804) |
| Net increase (decrease) | 11,613 | 1,096,153 | $235,159 | $15,347,289 |
| Class I | | | | |
| Shares sold | 2,006,017 | 5,123,102 | $31,786,144 | $82,769,872 |
| Reinvestment of distributions | 8,426 | 3,912 | 137,601 | 62,664 |
| Shares redeemed | (1,870,519) | (1,848,914) | (28,599,495) | (30,160,539) |
| Net increase (decrease) | 143,924 | 3,278,100 | $3,324,250 | $52,671,997 |
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.
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, 2015 to April 30, 2016).
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.
| | Annualized Expense Ratio-A | Beginning
Account Value
November 1, 2015 | Ending
Account Value
April 30, 2016 | Expenses Paid
During Period-B
November 1, 2015
to April 30, 2016 |
| Class A | 1.45% | | | |
| Actual | | $1,000.00 | $997.90 | $7.20 |
| Hypothetical-C | | $1,000.00 | $1,017.65 | $7.27 |
| Class T | 1.70% | | | |
| Actual | | $1,000.00 | $996.70 | $8.44 |
| Hypothetical-C | | $1,000.00 | $1,016.41 | $8.52 |
| Class B | 2.20% | | | |
| Actual | | $1,000.00 | $994.20 | $10.91 |
| Hypothetical-C | | $1,000.00 | $1,013.92 | $11.02 |
| Class C | 2.20% | | | |
| Actual | | $1,000.00 | $994.20 | $10.91 |
| Hypothetical-C | | $1,000.00 | $1,013.92 | $11.02 |
| Class I | 1.20% | | | |
| Actual | | $1,000.00 | $998.70 | $5.96 |
| Hypothetical-C | | $1,000.00 | $1,018.90 | $6.02 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
C 5% return per year before expenses
AICAPI-SANN-0616
1.703430.118
Fidelity Advisor® Global Equity Income Fund
Class I
Semi-Annual Report April 30, 2016 |
|
Contents
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. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Five Stocks as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Johnson & Johnson (United States of America, Pharmaceuticals) | 2.6 | 2.4 |
| Accenture PLC Class A (Ireland, IT Services) | 1.9 | 1.9 |
| General Electric Co. (United States of America, Industrial Conglomerates) | 1.9 | 2.4 |
| Apple, Inc. (United States of America, Technology Hardware, Storage & Peripherals) | 1.9 | 2.5 |
| Chevron Corp. (United States of America, Oil, Gas & Consumable Fuels) | 1.8 | 1.8 |
| | 10.1 | |
Top Five Market Sectors as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Financials | 17.2 | 20.6 |
| Information Technology | 14.5 | 17.3 |
| Consumer Staples | 12.9 | 14.5 |
| Health Care | 12.6 | 13.2 |
| Consumer Discretionary | 12.0 | 13.3 |
Top Five Countries as of April 30, 2016
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| United States of America | 38.7 | 41.4 |
| Japan | 10.9 | 11.4 |
| United Kingdom | 10.5 | 12.9 |
| Ireland | 4.2 | 4.1 |
| Canada | 3.5 | 3.3 |
Percentages are adjusted for the effect of futures contracts, if applicable.
Asset Allocation (% of fund's net assets)
| As of April 30, 2016 |
| | Stocks | 88.9% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 11.1% |
| As of October 31, 2015 |
| | Stocks | 96.0% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 4.0% |
Investments April 30, 2016 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 88.9% | | | |
| | | Shares | Value |
| Australia - 0.0% | | | |
| Telstra Corp. Ltd. | | 559 | $2,270 |
| Bailiwick of Jersey - 1.5% | | | |
| Shire PLC | | 1,470 | 91,731 |
| Wolseley PLC | | 3,024 | 169,381 |
|
| TOTAL BAILIWICK OF JERSEY | | | 261,112 |
|
| Belgium - 0.6% | | | |
| Anheuser-Busch InBev SA NV | | 800 | 99,024 |
| Canada - 3.5% | | | |
| Constellation Software, Inc. | | 220 | 85,977 |
| Fairfax Financial Holdings Ltd. (sub. vtg.) | | 160 | 85,758 |
| Imperial Oil Ltd. | | 4,870 | 161,505 |
| PrairieSky Royalty Ltd. | | 1,110 | 23,373 |
| Suncor Energy, Inc. | | 8,600 | 252,441 |
|
| TOTAL CANADA | | | 609,054 |
|
| Cayman Islands - 0.3% | | | |
| SITC International Holdings Co. Ltd. | | 105,000 | 56,749 |
| Chile - 0.4% | | | |
| Vina San Pedro SA | | 7,534,071 | 74,237 |
| France - 2.8% | | | |
| Bouygues SA | | 1,494 | 49,816 |
| Cegedim SA (a) | | 1,000 | 27,458 |
| Renault SA | | 1,289 | 124,395 |
| Sanofi SA | | 2,623 | 216,205 |
| VINCI SA | | 792 | 59,165 |
|
| TOTAL FRANCE | | | 477,039 |
|
| Germany - 1.6% | | | |
| adidas AG | | 840 | 108,303 |
| AURELIUS AG | | 1,469 | 87,838 |
| SAP AG | | 942 | 73,910 |
|
| TOTAL GERMANY | | | 270,051 |
|
| Hong Kong - 1.8% | | | |
| HKT Trust/HKT Ltd. unit | | 90,280 | 129,772 |
| Techtronic Industries Co. Ltd. | | 50,000 | 187,434 |
|
| TOTAL HONG KONG | | | 317,206 |
|
| Indonesia - 0.5% | | | |
| PT Bank Central Asia Tbk | | 91,300 | 90,345 |
| Ireland - 4.2% | | | |
| Accenture PLC Class A | | 2,941 | 332,098 |
| Greencore Group PLC | | 26,121 | 137,705 |
| Medtronic PLC | | 3,153 | 249,560 |
|
| TOTAL IRELAND | | | 719,363 |
|
| Isle of Man - 1.1% | | | |
| Optimal Payments PLC (a) | | 16,800 | 93,574 |
| Playtech Ltd. | | 8,739 | 102,727 |
|
| TOTAL ISLE OF MAN | | | 196,301 |
|
| Israel - 3.1% | | | |
| Bezeq The Israel Telecommunication Corp. Ltd. | | 56,800 | 121,157 |
| Cellcom Israel Ltd. (Israel) (a) | | 10,478 | 78,632 |
| Partner Communications Co. Ltd. (a) | | 11,358 | 59,093 |
| Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. | | 900 | 36,950 |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | | 4,310 | 234,680 |
|
| TOTAL ISRAEL | | | 530,512 |
|
| Italy - 0.2% | | | |
| Astaldi SpA | | 7,800 | 38,244 |
| Japan - 10.9% | | | |
| A/S One Corp. | | 2,200 | 79,328 |
| Astellas Pharma, Inc. | | 17,700 | 238,642 |
| Broadleaf Co. Ltd. | | 4,700 | 46,446 |
| Casio Computer Co. Ltd. | | 2,100 | 39,957 |
| Daiichikosho Co. Ltd. | | 4,300 | 180,264 |
| Daito Trust Construction Co. Ltd. | | 900 | 127,289 |
| Hoya Corp. | | 6,800 | 260,401 |
| Inaba Denki Sangyo Co. Ltd. | | 500 | 15,699 |
| Japan Tobacco, Inc. | | 2,800 | 114,402 |
| KDDI Corp. | | 5,200 | 149,790 |
| NEC Corp. | | 24,000 | 58,411 |
| Nippon Telegraph & Telephone Corp. | | 1,600 | 71,601 |
| Olympus Corp. | | 4,200 | 163,618 |
| ORIX Corp. | | 3,500 | 49,507 |
| Shinsei Bank Ltd. | | 91,000 | 127,543 |
| Sony Corp. | | 2,400 | 58,132 |
| Tsuruha Holdings, Inc. | | 1,000 | 95,916 |
| USS Co. Ltd. | | 1,100 | 17,400 |
|
| TOTAL JAPAN | | | 1,894,346 |
|
| Netherlands - 1.1% | | | |
| Altice NV Class A (a) | | 3,954 | 59,990 |
| LyondellBasell Industries NV Class A | | 1,521 | 125,741 |
|
| TOTAL NETHERLANDS | | | 185,731 |
|
| Singapore - 0.5% | | | |
| United Overseas Bank Ltd. | | 6,525 | 90,244 |
| South Africa - 1.0% | | | |
| Capitec Bank Holdings Ltd. | | 2,200 | 91,346 |
| EOH Holdings Ltd. | | 3,900 | 37,958 |
| Lewis Group Ltd. | | 11,600 | 39,122 |
|
| TOTAL SOUTH AFRICA | | | 168,426 |
|
| Spain - 0.5% | | | |
| Amadeus IT Holding SA Class A | | 1,900 | 86,458 |
| Sweden - 0.5% | | | |
| Sandvik AB | | 8,800 | 90,296 |
| Switzerland - 1.5% | | | |
| Banque Cantonale Vaudoise | | 110 | 75,852 |
| Chubb Ltd. | | 1,190 | 140,253 |
| Sika AG | | 10 | 42,562 |
|
| TOTAL SWITZERLAND | | | 258,667 |
|
| Taiwan - 2.1% | | | |
| ECLAT Textile Co. Ltd. | | 4,022 | 45,881 |
| King's Town Bank | | 27,000 | 18,806 |
| Taiwan Semiconductor Manufacturing Co. Ltd. | | 66,000 | 302,759 |
|
| TOTAL TAIWAN | | | 367,446 |
|
| United Kingdom - 10.5% | | | |
| British American Tobacco PLC (United Kingdom) | | 2,888 | 176,087 |
| Hilton Food Group PLC | | 11,081 | 91,155 |
| Howden Joinery Group PLC | | 8,754 | 63,187 |
| Imperial Tobacco Group PLC | | 3,310 | 179,842 |
| ITV PLC | | 60,142 | 197,898 |
| Lloyds Banking Group PLC | | 192,616 | 189,055 |
| Micro Focus International PLC | | 10,284 | 229,755 |
| Reckitt Benckiser Group PLC | | 1,254 | 122,163 |
| SABMiller PLC | | 1,448 | 88,544 |
| St. James's Place Capital PLC | | 6,387 | 80,912 |
| The Restaurant Group PLC | | 4,635 | 18,631 |
| WH Smith PLC | | 9,161 | 224,209 |
| Whitbread PLC | | 1,325 | 74,963 |
| William Hill PLC | | 12,339 | 56,377 |
| Wuliangye Yibin Co. Ltd. ELS (UBS Warrant Programme) warrants 3/7/19 (a)(b) | | 5,700 | 25,004 |
|
| TOTAL UNITED KINGDOM | | | 1,817,782 |
|
| United States of America - 38.7% | | | |
| American Tower Corp. | | 1,512 | 158,579 |
| Amgen, Inc. | | 842 | 133,289 |
| Apple, Inc. | | 3,428 | 321,341 |
| Bank of America Corp. | | 13,135 | 191,246 |
| BWX Technologies, Inc. | | 5,026 | 167,818 |
| C.H. Robinson Worldwide, Inc. | | 430 | 30,517 |
| Chevron Corp. | | 3,123 | 319,108 |
| CME Group, Inc. | | 565 | 51,929 |
| Comcast Corp. Class A | | 2,359 | 143,333 |
| ConocoPhillips Co. | | 2,579 | 123,250 |
| CVB Financial Corp. | | 6,426 | 110,399 |
| CVS Health Corp. | | 2,844 | 285,822 |
| Danaher Corp. | | 1,984 | 191,952 |
| Deluxe Corp. | | 407 | 25,551 |
| Diamond Hill Investment Group, Inc. | | 588 | 103,053 |
| Dr. Pepper Snapple Group, Inc. | | 1,253 | 113,910 |
| E.I. du Pont de Nemours & Co. | | 1,674 | 110,333 |
| EMC Corp. | | 4,049 | 105,719 |
| Exxon Mobil Corp. | | 3,005 | 265,642 |
| First NBC Bank Holding Co. (a) | | 400 | 8,696 |
| General Electric Co. | | 10,604 | 326,073 |
| H&R Block, Inc. | | 3,076 | 62,258 |
| IBM Corp. | | 1,162 | 169,582 |
| Johnson & Johnson | | 3,946 | 442,267 |
| JPMorgan Chase & Co. | | 4,350 | 274,920 |
| McDonald's Corp. | | 882 | 111,564 |
| McGraw Hill Financial, Inc. | | 1,332 | 142,324 |
| Microsoft Corp. | | 5,482 | 273,387 |
| Molson Coors Brewing Co. Class B | | 701 | 67,037 |
| MSCI, Inc. Class A | | 1,221 | 92,723 |
| Oracle Corp. | | 4,790 | 190,929 |
| PepsiCo, Inc. | | 1,676 | 172,561 |
| Procter & Gamble Co. | | 2,403 | 192,528 |
| Roper Technologies, Inc. | | 475 | 83,643 |
| SunTrust Banks, Inc. | | 3,008 | 125,554 |
| Target Corp. | | 2,910 | 231,345 |
| The Coca-Cola Co. | | 4,079 | 182,739 |
| U.S. Bancorp | | 4,581 | 195,563 |
| United Technologies Corp. | | 973 | 101,552 |
| VF Corp. | | 815 | 51,386 |
| Wells Fargo & Co. | | 5,171 | 258,447 |
|
| TOTAL UNITED STATES OF AMERICA�� | | | 6,709,869 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $14,375,145) | | | 15,410,772 |
| | | Principal Amount(c) | Value |
|
| Nonconvertible Bonds - 0.0% | | | |
| Canada - 0.0% | | | |
| Constellation Software, Inc. 7.6% 3/31/40(d) | | | |
| (Cost $429) | | 500 | 434 |
| | | Shares | Value |
|
| Money Market Funds - 10.7% | | | |
| Fidelity Cash Central Fund, 0.38% (e) | | | |
| (Cost $1,842,438) | | 1,842,438 | 1,842,438 |
| TOTAL INVESTMENT PORTFOLIO - 99.6% | | | |
| (Cost $16,218,012) | | | 17,253,644 |
| NET OTHER ASSETS (LIABILITIES) - 0.4% | | | 77,799 |
| NET ASSETS - 100% | | | $17,331,443 |
Currency Abbreviations
CAD – Canadian dollar
Security Type Abbreviations
ELS – Equity-Linked Security
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) 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 $25,004 or 0.1% of net assets.
(c) Amount is stated in United States dollars unless otherwise noted.
(d) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(e) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $1,368 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2016, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Consumer Discretionary | $2,096,029 | $1,612,842 | $483,187 | $-- |
| Consumer Staples | 2,230,622 | 1,722,054 | 508,568 | -- |
| Energy | 1,145,319 | 1,145,319 | -- | -- |
| Financials | 2,993,185 | 2,474,787 | 518,398 | -- |
| Health Care | 2,137,179 | 1,087,254 | 1,049,925 | -- |
| Industrials | 1,406,456 | 1,164,627 | 241,829 | -- |
| Information Technology | 2,511,031 | 2,029,505 | 481,526 | -- |
| Materials | 278,636 | 278,636 | -- | -- |
| Telecommunication Services | 612,315 | 258,882 | 353,433 | -- |
| Corporate Bonds | 434 | -- | 434 | -- |
| Money Market Funds | 1,842,438 | 1,842,438 | -- | -- |
| Total Investments in Securities: | $17,253,644 | $13,616,344 | $3,637,300 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2016. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
| Transfers | Total |
| Level 1 to Level 2 | $0 |
| Level 2 to Level 1 | $266,858 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | April 30, 2016 (Unaudited) |
| Assets | | |
Investment in securities, at value — See accompanying schedule:
Unaffiliated issuers (cost $14,375,574) | $15,411,206 | |
| Fidelity Central Funds (cost $1,842,438) | 1,842,438 | |
| Total Investments (cost $16,218,012) | | $17,253,644 |
| Cash | | 581 |
| Foreign currency held at value (cost $82) | | 100 |
| Receivable for investments sold | | 35,798 |
| Receivable for fund shares sold | | 72,822 |
| Dividends receivable | | 66,289 |
| Interest receivable | | 3 |
| Distributions receivable from Fidelity Central Funds | | 443 |
| Prepaid expenses | | 7 |
| Receivable from investment adviser for expense reductions | | 37,107 |
| Other receivables | | 998 |
| Total assets | | 17,467,792 |
| Liabilities | | |
| Payable for fund shares redeemed | $83,988 | |
| Accrued management fee | 10,007 | |
| Distribution and service plan fees payable | 5,074 | |
| Other affiliated payables | 4,133 | |
| Other payables and accrued expenses | 33,147 | |
| Total liabilities | | 136,349 |
| Net Assets | | $17,331,443 |
| Net Assets consist of: | | |
| Paid in capital | | $16,515,605 |
| Undistributed net investment income | | 34,503 |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (255,617) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 1,036,952 |
| Net Assets | | $17,331,443 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($5,574,347 ÷ 452,035 shares) | | $12.33 |
| Maximum offering price per share (100/94.25 of $12.33) | | $13.08 |
| Class T: | | |
| Net Asset Value and redemption price per share ($2,538,110 ÷ 205,907 shares) | | $12.33 |
| Maximum offering price per share (100/96.50 of $12.33) | | $12.78 |
| Class C: | | |
| Net Asset Value and offering price per share ($3,512,049 ÷ 285,919 shares)(a) | | $12.28 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($5,706,937 ÷ 462,107 shares) | | $12.35 |
(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.
Statement of Operations
| | | Six months ended April 30, 2016 (Unaudited) |
| Investment Income | | |
| Dividends | | $178,349 |
| Interest | | 16 |
| Income from Fidelity Central Funds | | 1,368 |
| Income before foreign taxes withheld | | 179,733 |
| Less foreign taxes withheld | | (7,330) |
| Total income | | 172,403 |
| Expenses | | |
| Management fee | $48,492 | |
| Transfer agent fees | 19,399 | |
| Distribution and service plan fees | 28,296 | |
| Accounting fees and expenses | 3,591 | |
| Custodian fees and expenses | 8,524 | |
| Independent trustees' compensation | 28 | |
| Registration fees | 47,951 | |
| Audit | 38,347 | |
| Legal | 222 | |
| Miscellaneous | 316 | |
| Total expenses before reductions | 195,166 | |
| Expense reductions | (83,701) | 111,465 |
| Net investment income (loss) | | 60,938 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (189,990) | |
| Foreign currency transactions | 629 | |
| Total net realized gain (loss) | | (189,361) |
Change in net unrealized appreciation (depreciation) on:
Investment securities | 254,169 | |
| Assets and liabilities in foreign currencies | 1,793 | |
| Total change in net unrealized appreciation (depreciation) | | 255,962 |
| Net gain (loss) | | 66,601 |
| Net increase (decrease) in net assets resulting from operations | | $127,539 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended April 30, 2016 (Unaudited) | Year ended October 31, 2015 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $60,938 | $77,738 |
| Net realized gain (loss) | (189,361) | 171,178 |
| Change in net unrealized appreciation (depreciation) | 255,962 | (63,591) |
| Net increase (decrease) in net assets resulting from operations | 127,539 | 185,325 |
| Distributions to shareholders from net investment income | (36,655) | (79,760) |
| Distributions to shareholders from net realized gain | (150,997) | (574,146) |
| Total distributions | (187,652) | (653,906) |
| Share transactions - net increase (decrease) | 5,963,159 | 1,350,797 |
| Total increase (decrease) in net assets | 5,903,046 | 882,216 |
| Net Assets | | |
| Beginning of period | 11,428,397 | 10,546,181 |
| End of period (including undistributed net investment income of $34,503 and undistributed net investment income of $10,220, respectively) | $17,331,443 | $11,428,397 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Equity Income Fund Class A
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | | | | | |
| Net asset value, beginning of period | $12.50 | $12.96 | $12.20 | $10.15 | $10.00 |
| Income from Investment Operations | | | | | |
| Net investment income (loss)B | .06 | .12 | .25C | .19 | .09 |
| Net realized and unrealized gain (loss) | (.03) | .24 | .91 | 2.05 | .16 |
| Total from investment operations | .03 | .36 | 1.16 | 2.24 | .25 |
| Distributions from net investment income | (.04) | (.11) | (.22) | (.18) | (.10) |
| Distributions from net realized gain | (.16) | (.71) | (.18) | (.01) | – |
| Total distributions | (.20) | (.82) | (.40) | (.19) | (.10) |
| Net asset value, end of period | $12.33 | $12.50 | $12.96 | $12.20 | $10.15 |
| Total ReturnD,E,F | .26% | 2.85% | 9.70% | 22.28% | 2.51% |
| Ratios to Average Net AssetsG,H | | | | | |
| Expenses before reductions | 2.65%I | 2.42% | 2.63% | 4.37% | 7.41%I |
| Expenses net of fee waivers, if any | 1.45%I | 1.45% | 1.45% | 1.45% | 1.45%I |
| Expenses net of all reductions | 1.45%I | 1.44% | 1.45% | 1.43% | 1.44%I |
| Net investment income (loss) | 1.03%I | .95% | 1.95%C | 1.66% | 1.89%I |
| Supplemental Data | | | | | |
| Net assets, end of period (000 omitted) | $5,574 | $4,552 | $4,025 | $2,115 | $756 |
| Portfolio turnover rateJ | 34%I | 87% | 112% | 78% | 36%K |
A For the period May 2, 2012 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.25%.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Equity Income Fund Class T
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | | | | | |
| Net asset value, beginning of period | $12.49 | $12.95 | $12.20 | $10.14 | $10.00 |
| Income from Investment Operations | | | | | |
| Net investment income (loss)B | .05 | .09 | .21C | .16 | .08 |
| Net realized and unrealized gain (loss) | (.02) | .24 | .91 | 2.06 | .15 |
| Total from investment operations | .03 | .33 | 1.12 | 2.22 | .23 |
| Distributions from net investment income | (.03) | (.08) | (.19) | (.15) | (.09) |
| Distributions from net realized gain | (.16) | (.71) | (.18) | (.01) | – |
| Total distributions | (.19) | (.79) | (.37) | (.16) | (.09) |
| Net asset value, end of period | $12.33 | $12.49 | $12.95 | $12.20 | $10.14 |
| Total ReturnD,E,F | .20% | 2.59% | 9.34% | 22.11% | 2.31% |
| Ratios to Average Net AssetsG,H | | | | | |
| Expenses before reductions | 2.93%I | 2.73% | 2.96% | 4.80% | 7.68%I |
| Expenses net of fee waivers, if any | 1.70%I | 1.70% | 1.70% | 1.70% | 1.70%I |
| Expenses net of all reductions | 1.70%I | 1.69% | 1.70% | 1.68% | 1.69%I |
| Net investment income (loss) | .78%I | .70% | 1.70%C | 1.41% | 1.64%I |
| Supplemental Data | | | | | |
| Net assets, end of period (000 omitted) | $2,538 | $2,484 | $2,014 | $1,270 | $714 |
| Portfolio turnover rateJ | 34%I | 87% | 112% | 78% | 36%K |
A For the period May 2, 2012 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.00%.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Equity Income Fund Class C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | | | | | |
| Net asset value, beginning of period | $12.46 | $12.93 | $12.18 | $10.14 | $10.00 |
| Income from Investment Operations | | | | | |
| Net investment income (loss)B | .02 | .03 | .15C | .10 | .06 |
| Net realized and unrealized gain (loss) | (.03) | .24 | .91 | 2.06 | .15 |
| Total from investment operations | (.01) | .27 | 1.06 | 2.16 | .21 |
| Distributions from net investment income | (.01) | (.05) | (.14) | (.11) | (.07) |
| Distributions from net realized gain | (.16) | (.70) | (.17) | (.01) | – |
| Total distributions | (.17) | (.74)D | (.31) | (.12) | (.07) |
| Net asset value, end of period | $12.28 | $12.46 | $12.93 | $12.18 | $10.14 |
| Total ReturnE,F,G | (.14)% | 2.10% | 8.83% | 21.40% | 2.12% |
| Ratios to Average Net AssetsH,I | | | | | |
| Expenses before reductions | 3.45%J | 3.23% | 3.43% | 5.26% | 8.19%J |
| Expenses net of fee waivers, if any | 2.20%J | 2.20% | 2.20% | 2.20% | 2.20%J |
| Expenses net of all reductions | 2.20%J | 2.19% | 2.20% | 2.18% | 2.19%J |
| Net investment income (loss) | .28%J | .20% | 1.20%C | .91% | 1.14%J |
| Supplemental Data | | | | | |
| Net assets, end of period (000 omitted) | $3,512 | $3,225 | $3,173 | $1,445 | $666 |
| Portfolio turnover rateK | 34%J | 87% | 112% | 78% | 36%L |
A For the period May 2, 2012 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .50%.
D Total distributions of $.74 per share is comprised of distributions from net investment income of $.046 and distributions from net realized gain of $.695 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H 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.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
L Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Equity Income Fund Class I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | | | | | |
| Net asset value, beginning of period | $12.51 | $12.97 | $12.22 | $10.15 | $10.00 |
| Income from Investment Operations | | | | | |
| Net investment income (loss)B | .08 | .15 | .28C | .21 | .10 |
| Net realized and unrealized gain (loss) | (.02) | .24 | .90 | 2.07 | .16 |
| Total from investment operations | .06 | .39 | 1.18 | 2.28 | .26 |
| Distributions from net investment income | (.06) | (.14) | (.25) | (.20) | (.11) |
| Distributions from net realized gain | (.16) | (.71) | (.18) | (.01) | – |
| Total distributions | (.22) | (.85) | (.43) | (.21) | (.11) |
| Net asset value, end of period | $12.35 | $12.51 | $12.97 | $12.22 | $10.15 |
| Total ReturnD,E | .46% | 3.09% | 9.86% | 22.71% | 2.61% |
| Ratios to Average Net AssetsF,G | | | | | |
| Expenses before reductions | 2.34%H | 2.11% | 2.35% | 4.46% | 7.23%H |
| Expenses net of fee waivers, if any | 1.20%H | 1.20% | 1.20% | 1.20% | 1.20%H |
| Expenses net of all reductions | 1.20%H | 1.19% | 1.20% | 1.18% | 1.19%H |
| Net investment income (loss) | 1.29%H | 1.20% | 2.20%C | 1.91% | 2.14%H |
| Supplemental Data | | | | | |
| Net assets, end of period (000 omitted) | $5,707 | $1,167 | $1,334 | $1,231 | $939 |
| Portfolio turnover rateI | 34%H | 87% | 112% | 78% | 36%J |
A For the period May 2, 2012 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.50%.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2016
1. Organization.
Fidelity Advisor Global Equity Income Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of April 30, 2016, including information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
| Gross unrealized appreciation | $1,624,934 |
| Gross unrealized depreciation | (661,671) |
| Net unrealized appreciation (depreciation) on securities | $963,263 |
| Tax cost | $16,290,381 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $6,577,542 and $2,209,538, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .70% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
| Class A | -% | .25% | $6,162 | $255 |
| Class T | .25% | .25% | 6,210 | 625 |
| Class C | .75% | .25% | 15,924 | 15,924 |
| | | | $28,296 | $16,804 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, and Class C redemptions. The deferred sales charges range from 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $4,099 |
| Class T | 680 |
| Class C(a) | 764 |
| | $5,543 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of 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
Class-Level Average
Net Assets(a) |
| Class A | $6,847 | .28 |
| Class T | 4,038 | .32 |
| Class C | 4,960 | .31 |
| Class I | 3,554 | .22 |
| | $19,399 | |
(a) Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The fee is based on the level of average net assets for each month.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $39 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $12 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Expense Reductions.
The investment adviser contractually agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. This reimbursement will remain in place through December 31, 2016. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| | Expense
Limitations | Reimbursement |
| Class A | 1.45% | $29,699 |
| Class T | 1.70% | 15,261 |
| Class C | 2.20% | 19,885 |
| Class I | 1.20% | 18,813 |
| | | $83,658 |
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $1.
In addition, during the period the investments adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $42.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| From net investment income | | |
| Class A | $17,402 | $37,903 |
| Class T | 5,464 | 15,415 |
| Class C | 1,297 | 12,164 |
| Class I | 12,492 | 14,278 |
| Total | $36,655 | $79,760 |
| From net realized gain | | |
| Class A | $60,195 | $222,759 |
| Class T | 32,288 | 109,345 |
| Class C | 41,507 | 168,198 |
| Class I | 17,007 | 73,844 |
| Total | $150,997 | $574,146 |
9. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| Class A | | | | |
| Shares sold | 127,899 | 172,016 | $1,552,736 | $2,191,371 |
| Reinvestment of distributions | 5,958 | 19,779 | 74,045 | 247,241 |
| Shares redeemed | (46,090) | (138,207) | (563,205) | (1,716,684) |
| Net increase (decrease) | 87,767 | 53,588 | $1,063,576 | $721,928 |
| Class T | | | | |
| Shares sold | 30,261 | 93,137 | $366,153 | $1,178,554 |
| Reinvestment of distributions | 3,035 | 9,968 | 37,747 | 124,661 |
| Shares redeemed | (26,303) | (59,695) | (317,949) | (748,248) |
| Net increase (decrease) | 6,993 | 43,410 | $85,951 | $554,967 |
| Class C | | | | |
| Shares sold | 72,561 | 120,269 | $884,490 | $1,517,646 |
| Reinvestment of distributions | 3,301 | 14,053 | 41,004 | 175,518 |
| Shares redeemed | (48,893) | (120,843) | (579,995) | (1,499,976) |
| Net increase (decrease) | 26,969 | 13,479 | $345,499 | $193,188 |
| Class I | | | | |
| Shares sold | 402,953 | 25,924 | $4,882,628 | $328,076 |
| Reinvestment of distributions | 1,788 | 6,890 | 22,214 | 86,194 |
| Shares redeemed | (35,864) | (42,440) | (436,709) | (533,556) |
| Net increase (decrease) | 368,877 | (9,626) | $4,468,133 | $(119,286) |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
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, 2015 to April 30, 2016).
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.
| | Annualized Expense Ratio-A | Beginning
Account Value
November 1, 2015 | Ending
Account Value
April 30, 2016 | Expenses Paid
During Period-B
November 1, 2015
to April 30, 2016 |
| Class A | 1.45% | | | |
| Actual | | $1,000.00 | $1,002.60 | $7.22 |
| Hypothetical-C | | $1,000.00 | $1,017.65 | $7.27 |
| Class T | 1.70% | | | |
| Actual | | $1,000.00 | $1,002.00 | $8.56 |
| Hypothetical-C | | $1,000.00 | $1,016.31 | $8.62 |
| Class C | 2.20% | | | |
| Actual | | $1,000.00 | $998.60 | $10.88 |
| Hypothetical-C | | $1,000.00 | $1,013.97 | $10.97 |
| Class I | 1.20% | | | |
| Actual | | $1,000.00 | $1,004.60 | $5.93 |
| Hypothetical-C | | $1,000.00 | $1,018.95 | $5.97 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
C 5% return per year before expenses
AGEDI-SANN-0616
1.938145.103
Fidelity Advisor® Emerging Markets Fund
Class A, Class T, Class B and Class C
Semi-Annual Report April 30, 2016 |
|
Contents
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. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Five Stocks as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 3.6 | 3.4 |
| Tencent Holdings Ltd. (Cayman Islands, Internet Software & Services) | 3.5 | 3.3 |
| Naspers Ltd. Class N (South Africa, Media) | 2.0 | 2.2 |
| Alibaba Group Holding Ltd. sponsored ADR (Cayman Islands, Internet Software & Services) | 1.6 | 0.7 |
| Infosys Ltd. (India, IT Services) | 1.4 | 0.0 |
| | 12.1 | |
Top Five Market Sectors as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Information Technology | 21.8 | 23.4 |
| Financials | 18.4 | 19.8 |
| Consumer Discretionary | 14.3 | 18.3 |
| Consumer Staples | 13.8 | 8.8 |
| Industrials | 9.9 | 11.2 |
Top Five Countries as of April 30, 2016
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| India | 13.4 | 10.6 |
| United States of America | 10.2 | 8.4 |
| Cayman Islands | 9.5 | 7.7 |
| Mexico | 8.6 | 6.8 |
| Brazil | 8.3 | 6.4 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2016 |
| | Stocks | 99.1% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 0.9% |
| As of October 31, 2015 |
| | Stocks | 99.9% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 0.1% |
Investments April 30, 2016 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 95.5% | | | |
| | | Shares | Value |
| Argentina - 0.9% | | | |
| Banco Macro SA sponsored ADR | | 31,700 | $1,985,371 |
| Grupo Financiero Galicia SA sponsored ADR | | 70,700 | 2,012,829 |
|
| TOTAL ARGENTINA | | | 3,998,200 |
|
| Australia - 1.0% | | | |
| Amcor Ltd. (a) | | 188,319 | 2,205,101 |
| Sydney Airport unit | | 401,832 | 2,080,679 |
|
| TOTAL AUSTRALIA | | | 4,285,780 |
|
| Belgium - 0.5% | | | |
| Anheuser-Busch InBev SA NV | | 15,700 | 1,943,345 |
| Bermuda - 2.8% | | | |
| Axalta Coating Systems (a) | | 67,800 | 1,930,266 |
| China Gas Holdings Ltd. | | 1,659,000 | 2,395,155 |
| China Resource Gas Group Ltd. | | 844,000 | 2,388,385 |
| Credicorp Ltd. (United States) | | 23,714 | 3,448,490 |
| Markit Ltd. (a) | | 48,000 | 1,674,720 |
|
| TOTAL BERMUDA | | | 11,837,016 |
|
| Brazil - 4.7% | | | |
| BB Seguridade Participacoes SA | | 330,700 | 2,884,641 |
| Cielo SA | | 354,886 | 3,456,766 |
| Kroton Educacional SA | | 835,000 | 3,107,654 |
| Qualicorp SA | | 536,900 | 2,326,033 |
| Smiles SA | | 180,500 | 2,094,047 |
| Ultrapar Participacoes SA | | 152,100 | 3,202,757 |
| Weg SA | | 606,930 | 2,678,839 |
|
| TOTAL BRAZIL | | | 19,750,737 |
|
| British Virgin Islands - 0.4% | | | |
| Mail.Ru Group Ltd. GDR (Reg. S) (a) | | 88,800 | 1,798,200 |
| Cayman Islands - 9.5% | | | |
| Alibaba Group Holding Ltd. sponsored ADR (a) | | 88,900 | 6,839,966 |
| Baidu.com, Inc. sponsored ADR (a) | | 28,400 | 5,518,120 |
| ENN Energy Holdings Ltd. | | 370,000 | 1,804,727 |
| Fu Shou Yuan International Group Ltd. | | 2,877,000 | 2,018,479 |
| New Oriental Education & Technology Group, Inc. sponsored ADR | | 60,200 | 2,357,432 |
| Shenzhou International Group Holdings Ltd. | | 469,000 | 2,424,508 |
| Sino Biopharmaceutical Ltd. | | 3,055,000 | 2,164,786 |
| TAL Education Group ADR (a) | | 36,900 | 2,135,034 |
| Tencent Holdings Ltd. | | 715,200 | 14,553,115 |
|
| TOTAL CAYMAN ISLANDS | | | 39,816,167 |
|
| China - 2.7% | | | |
| China Pacific Insurance (Group) Co. Ltd. (H Shares) | | 778,200 | 2,728,716 |
| Inner Mongoli Yili Industries Co. Ltd. | | 824,200 | 1,913,443 |
| Jiangsu Hengrui Medicine Co. Ltd. | | 276,860 | 1,996,250 |
| Kweichow Moutai Co. Ltd. | | 68,010 | 2,638,860 |
| Shanghai International Airport Co. Ltd. | | 475,700 | 1,999,335 |
|
| TOTAL CHINA | | | 11,276,604 |
|
| Denmark - 0.5% | | | |
| Novo Nordisk A/S Series B sponsored ADR | | 36,300 | 2,025,177 |
| France - 0.5% | | | |
| Dassault Systemes SA | | 26,753 | 2,092,270 |
| Germany - 1.0% | | | |
| adidas AG | | 16,300 | 2,101,602 |
| Wirecard AG (b) | | 51,700 | 2,232,693 |
|
| TOTAL GERMANY | | | 4,334,295 |
|
| Hong Kong - 1.7% | | | |
| AIA Group Ltd. | | 384,000 | 2,298,089 |
| Guangdong Investment Ltd. | | 1,972,000 | 2,784,585 |
| Techtronic Industries Co. Ltd. | | 559,500 | 2,097,381 |
|
| TOTAL HONG KONG | | | 7,180,055 |
|
| India - 13.4% | | | |
| Adani Ports & Special Economic Zone | | 774,193 | 2,776,235 |
| Amara Raja Batteries Ltd. | | 146,862 | 2,113,316 |
| Asian Paints India Ltd. | | 195,275 | 2,546,567 |
| Bharti Infratel Ltd. | | 387,693 | 2,188,399 |
| Colgate-Palmolive (India) | | 170,747 | 2,161,408 |
| GlaxoSmithKline Consumer Healthcare Ltd. (a) | | 25,178 | 2,235,433 |
| HCL Technologies Ltd. | | 229,109 | 2,587,869 |
| HDFC Bank Ltd. (a) | | 108,338 | 2,202,169 |
| Hindustan Unilever Ltd. | | 234,061 | 3,058,186 |
| Housing Development Finance Corp. Ltd. | | 292,221 | 4,788,341 |
| IndusInd Bank Ltd. | | 139,823 | 2,207,787 |
| Infosys Ltd. | | 315,118 | 5,724,328 |
| ITC Ltd. | | 693,666 | 3,393,377 |
| LIC Housing Finance Ltd. (a) | | 312,300 | 2,173,507 |
| Lupin Ltd. | | 94,777 | 2,293,251 |
| Maruti Suzuki India Ltd. (a) | | 47,987 | 2,741,325 |
| Power Grid Corp. of India Ltd. | | 955,059 | 2,061,790 |
| Sun Pharmaceutical Industries Ltd. | | 258,261 | 3,154,318 |
| Tata Consultancy Services Ltd. | | 111,953 | 4,273,311 |
| Titan Co. Ltd. | | 342,580 | 1,835,503 |
|
| TOTAL INDIA | | | 56,516,420 |
|
| Indonesia - 3.9% | | | |
| PT ACE Hardware Indonesia Tbk | | 28,972,600 | 2,032,124 |
| PT Bank Central Asia Tbk | | 3,158,700 | 3,125,647 |
| PT Bank Rakyat Indonesia Tbk | | 3,379,800 | 2,652,482 |
| PT Kalbe Farma Tbk | | 19,843,000 | 2,068,860 |
| PT Matahari Department Store Tbk | | 1,663,000 | 2,395,890 |
| PT Surya Citra Media Tbk | | 9,326,700 | 2,263,076 |
| PT Tower Bersama Infrastructure Tbk (a) | | 3,761,900 | 1,690,117 |
|
| TOTAL INDONESIA | | | 16,228,196 |
|
| Isle of Man - 0.4% | | | |
| Playtech Ltd. | | 136,389 | 1,603,246 |
| Israel - 1.4% | | | |
| Check Point Software Technologies Ltd. (a) | | 24,000 | 1,988,880 |
| Frutarom Industries Ltd. | | 41,000 | 2,101,326 |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | | 33,900 | 1,845,855 |
|
| TOTAL ISRAEL | | | 5,936,061 |
|
| Kenya - 0.5% | | | |
| Safaricom Ltd. | | 12,322,800 | 2,086,335 |
| Korea (South) - 5.5% | | | |
| AMOREPACIFIC Corp. | | 10,203 | 3,629,059 |
| AMOREPACIFIC Group, Inc. | | 18,712 | 2,743,899 |
| Coway Co. Ltd. | | 27,100 | 2,332,302 |
| KT&G Corp. | | 33,089 | 3,552,445 |
| LG Chemical Ltd. | | 12,680 | 3,287,110 |
| LG Household & Health Care Ltd. | | 3,686 | 3,239,839 |
| NAVER Corp. | | 7,273 | 4,297,747 |
|
| TOTAL KOREA (SOUTH) | | | 23,082,401 |
|
| Luxembourg - 0.5% | | | |
| Eurofins Scientific SA | | 5,700 | 2,115,005 |
| Mexico - 8.6% | | | |
| Banregio Grupo Financiero S.A.B. de CV | | 365,566 | 2,190,678 |
| El Puerto de Liverpool S.A.B. de CV Class C | | 185,100 | 2,104,083 |
| Fomento Economico Mexicano S.A.B. de CV unit | | 419,900 | 3,906,943 |
| Gruma S.A.B. de CV Series B | | 156,100 | 2,280,349 |
| Grupo Aeroportuario del Pacifico S.A.B. de CV Series B | | 266,721 | 2,513,011 |
| Grupo Aeroportuario del Sureste S.A.B. de CV Series B | | 166,495 | 2,556,846 |
| Grupo Aeroportuario Norte S.A.B. de CV | | 386,000 | 2,233,708 |
| Grupo Financiero Banorte S.A.B. de CV Series O | | 633,900 | 3,598,621 |
| Grupo GICSA SA de CV (a) | | 1,802,428 | 1,416,409 |
| Infraestructura Energetica Nova S.A.B. de CV (b) | | 501,400 | 1,959,303 |
| Kimberly-Clark de Mexico SA de CV Series A | | 1,025,200 | 2,426,445 |
| Megacable Holdings S.A.B. de CV unit | | 494,884 | 2,285,343 |
| Promotora y Operadora de Infraestructura S.A.B. de CV | | 163,300 | 2,070,977 |
| Tenedora Nemak SA de CV | | 1,415,300 | 2,030,242 |
| Wal-Mart de Mexico SA de CV Series V | | 991,100 | 2,451,157 |
|
| TOTAL MEXICO | | | 36,024,115 |
|
| Philippines - 3.9% | | | |
| Ayala Corp. | | 158,850 | 2,603,877 |
| Ayala Land, Inc. | | 3,524,600 | 2,596,522 |
| D&L Industries, Inc. | | 9,851,700 | 1,885,092 |
| GT Capital Holdings, Inc. | | 76,880 | 2,234,399 |
| International Container Terminal Services, Inc. | | 1,461,520 | 2,019,747 |
| SM Investments Corp. | | 121,046 | 2,429,413 |
| SM Prime Holdings, Inc. | | 5,142,900 | 2,476,596 |
|
| TOTAL PHILIPPINES | | | 16,245,646 |
|
| Russia - 1.4% | | | |
| Magnit OJSC (a) | | 19,889 | 2,764,148 |
| NOVATEK OAO GDR (Reg. S) | | 32,100 | 3,081,600 |
|
| TOTAL RUSSIA | | | 5,845,748 |
|
| South Africa - 6.8% | | | |
| Aspen Pharmacare Holdings Ltd. | | 141,193 | 3,327,474 |
| Bidvest Group Ltd. | | 118,915 | 3,017,974 |
| Discovery Ltd. | | 289,962 | 2,591,382 |
| FirstRand Ltd. | | 993,300 | 3,192,320 |
| Mondi Ltd. | | 125,520 | 2,411,423 |
| Mr Price Group Ltd. | | 202,500 | 2,572,352 |
| Naspers Ltd. Class N | | 60,900 | 8,356,095 |
| Sanlam Ltd. | | 641,100 | 3,107,490 |
|
| TOTAL SOUTH AFRICA | | | 28,576,510 |
|
| Spain - 0.5% | | | |
| Amadeus IT Holding SA Class A | | 46,900 | 2,134,151 |
| Switzerland - 0.5% | | | |
| Sika AG | | 500 | 2,128,114 |
| Taiwan - 5.3% | | | |
| Advantech Co. Ltd. | | 285,000 | 2,011,578 |
| ECLAT Textile Co. Ltd. | | 207,540 | 2,367,535 |
| Largan Precision Co. Ltd. | | 41,000 | 2,881,157 |
| Taiwan Semiconductor Manufacturing Co. Ltd. | | 3,326,000 | 15,257,222 |
|
| TOTAL TAIWAN | | | 22,517,492 |
|
| Thailand - 1.6% | | | |
| Airports of Thailand PCL (For. Reg.) | | 223,000 | 2,503,322 |
| Bangkok Dusit Medical Services PCL (For. Reg.) | | 3,186,000 | 2,171,443 |
| Thai Beverage PCL | | 3,651,100 | 2,022,582 |
|
| TOTAL THAILAND | | | 6,697,347 |
|
| Turkey - 2.2% | | | |
| Bim Birlesik Magazalar A/S JSC | | 107,000 | 2,355,683 |
| Koc Holding A/S | | 496,000 | 2,593,452 |
| Tofas Turk Otomobil Fabrikasi A/S | | 266,162 | 2,106,085 |
| Tupras Turkiye Petrol Rafinelleri A/S | | 86,000 | 2,269,871 |
|
| TOTAL TURKEY | | | 9,325,091 |
|
| United Arab Emirates - 0.6% | | | |
| DP World Ltd. | | 127,877 | 2,416,875 |
| United Kingdom - 2.1% | | | |
| British American Tobacco PLC (United Kingdom) | | 33,900 | 2,066,954 |
| Hikma Pharmaceuticals PLC | | 78,206 | 2,518,526 |
| NMC Health PLC | | 133,500 | 2,042,315 |
| Prudential PLC | | 107,531 | 2,122,612 |
|
| TOTAL UNITED KINGDOM | | | 8,750,407 |
|
| United States of America - 10.2% | | | |
| A.O. Smith Corp. | | 24,400 | 1,884,168 |
| Alphabet, Inc. Class C | | 2,460 | 1,704,805 |
| Amazon.com, Inc. (a) | | 3,400 | 2,242,606 |
| Amphenol Corp. Class A | | 32,100�� | 1,792,143 |
| China Biologic Products, Inc. (a) | | 19,200 | 2,246,400 |
| Danaher Corp. | | 19,000 | 1,838,250 |
| Ecolab, Inc. | | 16,470 | 1,893,721 |
| Facebook, Inc. Class A (a) | | 15,800 | 1,857,764 |
| Gartner, Inc. Class A (a) | | 19,700 | 1,717,249 |
| International Flavors & Fragrances, Inc. | | 17,000 | 2,030,990 |
| MasterCard, Inc. Class A | | 20,000 | 1,939,800 |
| McGraw Hill Financial, Inc. | | 19,800 | 2,115,630 |
| MercadoLibre, Inc. | | 18,100 | 2,260,509 |
| Mettler-Toledo International, Inc. (a) | | 5,480 | 1,961,566 |
| Moody's Corp. | | 20,500 | 1,962,260 |
| MSCI, Inc. Class A | | 28,600 | 2,171,884 |
| NIKE, Inc. Class B | | 33,100 | 1,950,914 |
| Philip Morris International, Inc. | | 20,500 | 2,011,460 |
| PPG Industries, Inc. | | 17,300 | 1,909,747 |
| The Walt Disney Co. | | 17,500 | 1,807,050 |
| TransDigm Group, Inc. (a) | | 8,200 | 1,868,534 |
| Visa, Inc. Class A | | 23,800 | 1,838,312 |
|
| TOTAL UNITED STATES OF AMERICA | | | 43,005,762 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $376,006,621) | | | 401,572,768 |
|
| Nonconvertible Preferred Stocks - 3.6% | | | |
| Brazil - 3.6% | | | |
| Ambev SA sponsored ADR | | 883,280 | 4,937,535 |
| Banco Bradesco SA (PN) | | 668,360 | 5,033,226 |
| Itau Unibanco Holding SA | | 545,600 | 5,214,472 |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | | | |
| (Cost $16,080,286) | | | 15,185,233 |
|
| Money Market Funds - 1.9% | | | |
| Fidelity Cash Central Fund, 0.38% (c) | | 3,562,316 | 3,562,316 |
| Fidelity Securities Lending Cash Central Fund, 0.42% (c)(d) | | 4,137,230 | 4,137,230 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $7,699,546) | | | 7,699,546 |
| TOTAL INVESTMENT PORTFOLIO - 101.0% | | | |
| (Cost $399,786,453) | | | 424,457,547 |
| NET OTHER ASSETS (LIABILITIES) - (1.0)% | | | (4,078,849) |
| NET ASSETS - 100% | | | $420,378,698 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
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 | $7,105 |
| Fidelity Securities Lending Cash Central Fund | 39,758 |
| Total | $46,863 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2016, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Consumer Discretionary | $59,758,662 | $53,218,294 | $6,540,368 | $-- |
| Consumer Staples | 57,732,550 | 55,665,596 | 2,066,954 | -- |
| Energy | 8,554,228 | 8,554,228 | -- | -- |
| Financials | 78,811,167 | 69,459,581 | 9,351,586 | -- |
| Health Care | 34,257,259 | 32,092,473 | 2,164,786 | -- |
| Industrials | 41,594,681 | 41,594,681 | -- | -- |
| Information Technology | 92,361,201 | 56,826,536 | 35,534,665 | -- |
| Materials | 24,329,457 | 24,329,457 | -- | -- |
| Telecommunication Services | 5,964,851 | 5,964,851 | -- | -- |
| Utilities | 13,393,945 | 4,021,093 | 9,372,852 | -- |
| Money Market Funds | 7,699,546 | 7,699,546 | -- | -- |
| Total Investments in Securities: | $424,457,547 | $359,426,336 | $65,031,211 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2016. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
| Transfers | Total |
| Level 1 to Level 2 | $0 |
| Level 2 to Level 1 | $87,051,717 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | April 30, 2016 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $3,926,029) — See accompanying schedule:
Unaffiliated issuers (cost $392,086,907) | $416,758,001 | |
| Fidelity Central Funds (cost $7,699,546) | 7,699,546 | |
| Total Investments (cost $399,786,453) | | $424,457,547 |
| Foreign currency held at value (cost $34,009) | | 33,997 |
| Receivable for investments sold | | 55,455 |
| Receivable for fund shares sold | | 175,963 |
| Dividends receivable | | 580,450 |
| Distributions receivable from Fidelity Central Funds | | 22,330 |
| Prepaid expenses | | 332 |
| Other receivables | | 37,211 |
| Total assets | | 425,363,285 |
| Liabilities | | |
| Payable for fund shares redeemed | $281,733 | |
| Accrued management fee | 278,585 | |
| Distribution and service plan fees payable | 77,644 | |
| Other affiliated payables | 100,234 | |
| Other payables and accrued expenses | 109,161 | |
| Collateral on securities loaned, at value | 4,137,230 | |
| Total liabilities | | 4,984,587 |
| Net Assets | | $420,378,698 |
| Net Assets consist of: | | |
| Paid in capital | | $471,248,235 |
| Accumulated net investment loss | | (689,376) |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (74,848,712) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 24,668,551 |
| Net Assets | | $420,378,698 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($108,847,107 ÷ 5,253,777 shares) | | $20.72 |
| Maximum offering price per share (100/94.25 of $20.72) | | $21.98 |
| Class T: | | |
| Net Asset Value and redemption price per share ($41,531,229 ÷ 2,014,762 shares) | | $20.61 |
| Maximum offering price per share (100/96.50 of $20.61) | | $21.36 |
| Class B: | | |
| Net Asset Value and offering price per share ($2,231,936 ÷ 111,705 shares)(a) | | $19.98 |
| Class C: | | |
| Net Asset Value and offering price per share ($43,003,870 ÷ 2,157,222 shares)(a) | | $19.93 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($218,790,320 ÷ 10,510,785 shares) | | $20.82 |
| Class Z: | | |
| Net Asset Value, offering price and redemption price per share ($5,974,236 ÷ 287,219 shares) | | $20.80 |
(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.
Statement of Operations
| | | Six months ended April 30, 2016 (Unaudited) |
| Investment Income | | |
| Dividends | | $2,484,183 |
| Income from Fidelity Central Funds | | 46,863 |
| Income before foreign taxes withheld | | 2,531,046 |
| Less foreign taxes withheld | | (277,827) |
| Total income | | 2,253,219 |
| Expenses | | |
| Management fee | $1,586,202 | |
| Transfer agent fees | 497,496 | |
| Distribution and service plan fees | 457,367 | |
| Accounting and security lending fees | 103,436 | |
| Custodian fees and expenses | 146,396 | |
| Independent trustees' compensation | 865 | |
| Registration fees | 61,031 | |
| Audit | 59,131 | |
| Legal | 535 | |
| Miscellaneous | 1,355 | |
| Total expenses before reductions | 2,913,814 | |
| Expense reductions | (5,648) | 2,908,166 |
| Net investment income (loss) | | (654,947) |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (13,726,251) | |
| Foreign currency transactions | (10,068) | |
| Total net realized gain (loss) | | (13,736,319) |
Change in net unrealized appreciation (depreciation) on:
Investment securities (net of decrease in deferred foreign taxes of $141,583) | 13,720,840 | |
| Assets and liabilities in foreign currencies | 11,688 | |
| Total change in net unrealized appreciation (depreciation) | | 13,732,528 |
| Net gain (loss) | | (3,791) |
| Net increase (decrease) in net assets resulting from operations | | $(658,738) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended April 30, 2016 (Unaudited) | Year ended October 31, 2015 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $(654,947) | $1,401,023 |
| Net realized gain (loss) | (13,736,319) | (12,422,672) |
| Change in net unrealized appreciation (depreciation) | 13,732,528 | (41,643,776) |
| Net increase (decrease) in net assets resulting from operations | (658,738) | (52,665,425) |
| Distributions to shareholders from net investment income | (397,152) | (1,046,601) |
| Distributions to shareholders from net realized gain | – | (487,287) |
| Total distributions | (397,152) | (1,533,888) |
| Share transactions - net increase (decrease) | (137,433) | 3,501,123 |
| Redemption fees | 41,238 | 73,251 |
| Total increase (decrease) in net assets | (1,152,085) | (50,624,939) |
| Net Assets | | |
| Beginning of period | 421,530,783 | 472,155,722 |
| End of period (including accumulated net investment loss of $689,376 and undistributed net investment income of $362,723, respectively) | $420,378,698 | $421,530,783 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Markets Fund Class A
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| April 30, | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.73 | $23.38 | $22.62 | $20.51 | $20.50 | $23.71 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.04) | .06 | .06 | .08 | .22 | .21 |
| Net realized and unrealized gain (loss) | .03 | (2.66) | .76 | 2.23 | (.06) | (3.19) |
| Total from investment operations | (.01) | (2.60) | .82 | 2.31 | .16 | (2.98) |
| Distributions from net investment income | – | (.02) | (.05) | (.20) | (.15) | (.11) |
| Distributions from net realized gain | – | (.03) | (.01) | – | – | (.13) |
| Total distributions | – | (.05) | (.06) | (.20) | (.15) | (.24) |
| Redemption fees added to paid in capitalA | –B | –B | –B | –B | –B | .01 |
| Net asset value, end of period | $20.72 | $20.73 | $23.38 | $22.62 | $20.51 | $20.50 |
| Total ReturnC,D,E | (.05)% | (11.13)% | 3.65% | 11.34% | .80% | (12.69)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 1.54%H | 1.52% | 1.52% | 1.56% | 1.54% | 1.54% |
| Expenses net of fee waivers, if any | 1.54%H | 1.52% | 1.52% | 1.55% | 1.54% | 1.54% |
| Expenses net of all reductions | 1.54%H | 1.50% | 1.52% | 1.50% | 1.48% | 1.47% |
| Net investment income (loss) | (.40)%H | .28% | .26% | .38% | 1.07% | .92% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $108,847 | $112,931 | $141,601 | $146,378 | $160,464 | $202,477 |
| Portfolio turnover rateI | 91%H | 110% | 97% | 121% | 177% | 122% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Markets Fund Class T
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| April 30, | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.65 | $23.30 | $22.55 | $20.44 | $20.43 | $23.61 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.07) | .01 | –B | .03 | .16 | .15 |
| Net realized and unrealized gain (loss) | .03 | (2.66) | .76 | 2.22 | (.06) | (3.18) |
| Total from investment operations | (.04) | (2.65) | .76 | 2.25 | .10 | (3.03) |
| Distributions from net investment income | – | – | –B | (.14) | (.09) | (.04) |
| Distributions from net realized gain | – | – | (.01) | – | – | (.13) |
| Total distributions | – | – | (.01) | (.14) | (.09) | (.16)C |
| Redemption fees added to paid in capitalA | –B | –B | –B | –B | –B | .01 |
| Net asset value, end of period | $20.61 | $20.65 | $23.30 | $22.55 | $20.44 | $20.43 |
| Total ReturnD,E,F | (.19)% | (11.37)% | 3.39% | 11.06% | .49% | (12.89)% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 1.80%I | 1.78% | 1.78% | 1.81% | 1.80% | 1.79% |
| Expenses net of fee waivers, if any | 1.80%I | 1.78% | 1.78% | 1.81% | 1.80% | 1.79% |
| Expenses net of all reductions | 1.80%I | 1.76% | 1.78% | 1.76% | 1.73% | 1.73% |
| Net investment income (loss) | (.66)%I | .02% | - %J | .13% | .81% | .66% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $41,531 | $43,365 | $54,341 | $55,797 | $58,919 | $73,146 |
| Portfolio turnover rateK | 91%I | 110% | 97% | 121% | 177% | 122% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C 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.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 Annualized
J Amount represents less than .005%.
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Markets Fund Class B
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| April 30, | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.07 | $22.75 | $22.11 | $20.03 | $20.03 | $23.14 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.11) | (.10) | (.11) | (.08) | .06 | .04 |
| Net realized and unrealized gain (loss) | .02 | (2.58) | .75 | 2.18 | (.06) | (3.13) |
| Total from investment operations | (.09) | (2.68) | .64 | 2.10 | – | (3.09) |
| Distributions from net investment income | – | – | – | (.02) | – | (.01) |
| Distributions from net realized gain | – | – | – | – | – | (.03) |
| Total distributions | – | – | – | (.02) | – | (.03)B |
| Redemption fees added to paid in capitalA | –C | –C | –C | –C | –C | .01 |
| Net asset value, end of period | $19.98 | $20.07 | $22.75 | $22.11 | $20.03 | $20.03 |
| Total ReturnD,E,F | (.45)% | (11.78)% | 2.89% | 10.50% | -% | (13.33)% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 2.29%I | 2.28% | 2.28% | 2.31% | 2.29% | 2.29% |
| Expenses net of fee waivers, if any | 2.29%I | 2.28% | 2.28% | 2.31% | 2.29% | 2.29% |
| Expenses net of all reductions | 2.29%I | 2.26% | 2.28% | 2.26% | 2.23% | 2.22% |
| Net investment income (loss) | (1.15)%I | (.48)% | (.49)% | (.37)% | .32% | .16% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $2,232 | $3,255 | $7,546 | $11,391 | $15,994 | $21,304 |
| Portfolio turnover rateJ | 91%I | 110% | 97% | 121% | 177% | 122% |
A Calculated based on average shares outstanding during the period.
B 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.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Markets Fund Class C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| April 30, | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.02 | $22.70 | $22.06 | $20.00 | $20.00 | $23.13 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.11) | (.10) | (.11) | (.08) | .06 | .04 |
| Net realized and unrealized gain (loss) | .02 | (2.58) | .75 | 2.18 | (.06) | (3.12) |
| Total from investment operations | (.09) | (2.68) | .64 | 2.10 | – | (3.08) |
| Distributions from net investment income | – | – | – | (.04) | – | (.01) |
| Distributions from net realized gain | – | – | – | – | – | (.05) |
| Total distributions | – | – | – | (.04) | – | (.06) |
| Redemption fees added to paid in capitalA | –B | –B | –B | –B | –B | .01 |
| Net asset value, end of period | $19.93 | $20.02 | $22.70 | $22.06 | $20.00 | $20.00 |
| Total ReturnC,D,E | (.45)% | (11.81)% | 2.90% | 10.49% | -% | (13.33)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 2.29%H | 2.27% | 2.27% | 2.31% | 2.29% | 2.28% |
| Expenses net of fee waivers, if any | 2.29%H | 2.27% | 2.27% | 2.30% | 2.29% | 2.28% |
| Expenses net of all reductions | 2.29%H | 2.26% | 2.27% | 2.25% | 2.23% | 2.22% |
| Net investment income (loss) | (1.15)%H | (.47)% | (.49)% | (.37)% | .32% | .17% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $43,004 | $46,595 | $64,026 | $62,532 | $65,598 | $80,855 |
| Portfolio turnover rateI | 91%H | 110% | 97% | 121% | 177% | 122% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Markets Fund Class I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| April 30, | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.83 | $23.50 | $22.73 | $20.61 | $20.63 | $23.87 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.01) | .14 | .14 | .15 | .28 | .29 |
| Net realized and unrealized gain (loss) | .04 | (2.67) | .76 | 2.25 | (.06) | (3.21) |
| Total from investment operations | .03 | (2.53) | .90 | 2.40 | .22 | (2.92) |
| Distributions from net investment income | (.04) | (.11) | (.12) | (.28) | (.24) | (.20) |
| Distributions from net realized gain | – | (.03) | (.01) | – | – | (.13) |
| Total distributions | (.04) | (.14) | (.13) | (.28) | (.24) | (.33) |
| Redemption fees added to paid in capitalA | –B | –B | –B | –B | –B | .01 |
| Net asset value, end of period | $20.82 | $20.83 | $23.50 | $22.73 | $20.61 | $20.63 |
| Total ReturnC,D | .14% | (10.83)% | 4.00% | 11.73% | 1.08% | (12.41)% |
| Ratios to Average Net AssetsE,F | | | | | | |
| Expenses before reductions | 1.19%G | 1.17% | 1.18% | 1.23% | 1.22% | 1.21% |
| Expenses net of fee waivers, if any | 1.19%G | 1.17% | 1.18% | 1.22% | 1.22% | 1.21% |
| Expenses net of all reductions | 1.19%G | 1.16% | 1.18% | 1.18% | 1.16% | 1.14% |
| Net investment income (loss) | (.05)%G | .63% | .60% | .71% | 1.39% | 1.25% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $218,790 | $209,270 | $199,098 | $150,576 | $145,782 | $138,312 |
| Portfolio turnover rateH | 91%G | 110% | 97% | 121% | 177% | 122% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Markets Fund Class Z
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | |
| April 30, | 2016 | 2015 | 2014 | 2013 A |
| Selected Per–Share Data | | | | |
| Net asset value, beginning of period | $20.83 | $23.50 | $22.73 | $21.33 |
| Income from Investment Operations | | | | |
| Net investment income (loss)B | .01 | .17 | .18 | .03 |
| Net realized and unrealized gain (loss) | .03 | (2.66) | .76 | 1.37 |
| Total from investment operations | .04 | (2.49) | .94 | 1.40 |
| Distributions from net investment income | (.07) | (.14) | (.16) | – |
| Distributions from net realized gain | – | (.03) | (.01) | – |
| Total distributions | (.07) | (.18)C | (.17) | – |
| Redemption fees added to paid in capitalB,D | – | – | – | – |
| Net asset value, end of period | $20.80 | $20.83 | $23.50 | $22.73 |
| Total ReturnE,F | .19% | (10.68)% | 4.19% | 6.56% |
| Ratios to Average Net AssetsG,H | | | | |
| Expenses before reductions | 1.03%I | 1.02% | 1.02% | 1.05%I |
| Expenses net of fee waivers, if any | 1.03%I | 1.02% | 1.02% | 1.05%I |
| Expenses net of all reductions | 1.03%I | 1.00% | 1.02% | 1.00%I |
| Net investment income (loss) | .10%I | .78% | .77% | .62%I |
| Supplemental Data | | | | |
| Net assets, end of period (000 omitted) | $5,974 | $6,114 | $5,544 | $107 |
| Portfolio turnover rateJ | 91%I | 110% | 97% | 121% |
A For the period August 13, 2013 (commencement of sale of shares) to October 31, 2013.
B Calculated based on average shares outstanding during the period.
C Total distributions of $.18 per share is comprised of distributions from net investment income of $.143 and distributions from net realized gain of $.033 per share.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2016
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, Class I and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a maximum holding period of seven years from the initial date of purchase. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective on or about July 1, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of April 30, 2016, including information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), 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 | $46,138,355 |
| Gross unrealized depreciation | (23,211,711) |
| Net unrealized appreciation (depreciation) on securities | $22,926,644 |
| Tax cost | $401,530,903 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2017 | $(47,911,843) |
| Total with expiration | $(47,911,843) |
| No expiration | |
| Short-term | $(12,456,052) |
| Total no expiration | $(12,456,052) |
| Total capital loss carryforward | $(60,367,895) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.50% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $181,903,642 and $184,169,805, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .55% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .80% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares, except for the Class I. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
| Class A | -% | .25% | $131,354 | $222 |
| Class T | .25% | .25% | 100,958 | – |
| Class B | .75% | .25% | 12,991 | 9,743 |
| Class C | .75% | .25% | 212,064 | 16,361 |
| | | | $457,367 | $26,326 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $16,692 |
| Class T | 4,608 |
| Class B(a) | 1,041 |
| Class C(a) | 2,066 |
| | $24,407 |
(a) When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| | Amount | % of
Class-Level Average
Net Assets(a) |
| Class A | $159,384 | .30 |
| Class T | 63,712 | .32 |
| Class B | 3,939 | .30 |
| Class C | 64,561 | .30 |
| Class I | 204,569 | .20 |
| Class Z | 1,331 | .05 |
| | $497,496 | |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $695 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $348 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $39,758, including $525 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $4,176 for the period.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $22.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $1,450.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| From net investment income | | |
| Class A | $– | $115,150 |
| Class I | 377,257 | 898,042 |
| Class Z | 19,895 | 33,409 |
| Total | $397,152 | $1,046,601 |
| From net realized gain | | |
| Class A | $– | $199,998 |
| Class I | – | 279,579 |
| Class Z | – | 7,710 |
| Total | $– | $487,287 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| Class A | | | | |
| Shares sold | 649,337 | 1,093,525 | $12,767,711 | $24,402,020 |
| Reinvestment of distributions | – | 13,163 | – | 302,357 |
| Shares redeemed | (842,924) | (1,715,077) | (16,542,384) | (37,830,400) |
| Net increase (decrease) | (193,587) | (608,389) | $(3,774,673) | $(13,126,023) |
| Class T | | | | |
| Shares sold | 182,219 | 305,389 | $3,546,032 | $6,786,919 |
| Shares redeemed | (267,048) | (537,767) | (5,159,406) | (11,710,693) |
| Net increase (decrease) | (84,829) | (232,378) | $(1,613,374) | $(4,923,774) |
| Class B | | | | |
| Shares sold | 1,396 | 2,482 | $25,071 | $54,329 |
| Shares redeemed | (51,892) | (171,894) | (985,523) | (3,727,701) |
| Net increase (decrease) | (50,496) | (169,412) | $(960,452) | $(3,673,372) |
| Class C | | | | |
| Shares sold | 131,744 | 365,122 | $2,512,301 | $7,912,445 |
| Shares redeemed | (301,615) | (858,213) | (5,692,128) | (18,293,083) |
| Net increase (decrease) | (169,871) | (493,091) | $(3,179,827) | $(10,380,638) |
| Class I | | | | |
| Shares sold | 1,061,826 | 3,524,595 | $21,307,705 | $77,404,353 |
| Reinvestment of distributions | 17,692 | 49,091 | 362,855 | 1,129,581 |
| Shares redeemed | (614,601) | (1,999,205) | (12,159,604) | (44,250,238) |
| Net increase (decrease) | 464,917 | 1,574,481 | $9,510,956 | $34,283,696 |
| Class Z | | | | |
| Shares sold | 21,209 | 119,541 | $423,468 | $2,670,833 |
| Reinvestment of distributions | 971 | 1,789 | 19,895 | 41,119 |
| Shares redeemed | (28,451) | (63,727) | (563,426) | (1,390,718) |
| Net increase (decrease) | (6,271) | 57,603 | $(120,063) | $1,321,234 |
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.
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, 2015 to April 30, 2016).
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.
| | Annualized Expense Ratio-A | Beginning
Account Value
November 1, 2015 | Ending
Account Value
April 30, 2016 | Expenses Paid
During Period-B
November 1, 2015
to April 30, 2016 |
| Class A | 1.54% | | | |
| Actual | | $1,000.00 | $999.50 | $7.66 |
| Hypothetical-C | | $1,000.00 | $1,017.21 | $7.72 |
| Class T | 1.80% | | | |
| Actual | | $1,000.00 | $998.10 | $8.94 |
| Hypothetical-C | | $1,000.00 | $1,015.91 | $9.02 |
| Class B | 2.29% | | | |
| Actual | | $1,000.00 | $995.50 | $11.36 |
| Hypothetical-C | | $1,000.00 | $1,013.48 | $11.46 |
| Class C | 2.29% | | | |
| Actual | | $1,000.00 | $995.50 | $11.36 |
| Hypothetical-C | | $1,000.00 | $1,013.48 | $11.46 |
| Class I | 1.19% | | | |
| Actual | | $1,000.00 | $1,001.40 | $5.92 |
| Hypothetical-C | | $1,000.00 | $1,018.95 | $5.97 |
| Class Z | 1.03% | | | |
| Actual | | $1,000.00 | $1,001.90 | $5.13 |
| Hypothetical-C | | $1,000.00 | $1,019.74 | $5.17 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
C 5% return per year before expenses
FAEM-SANN-0616
1.800638.112
Fidelity Advisor® Global Equity Income Fund
Class A, Class T and Class C
Semi-Annual Report April 30, 2016 |
|
Contents
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. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Five Stocks as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Johnson & Johnson (United States of America, Pharmaceuticals) | 2.6 | 2.4 |
| Accenture PLC Class A (Ireland, IT Services) | 1.9 | 1.9 |
| General Electric Co. (United States of America, Industrial Conglomerates) | 1.9 | 2.4 |
| Apple, Inc. (United States of America, Technology Hardware, Storage & Peripherals) | 1.9 | 2.5 |
| Chevron Corp. (United States of America, Oil, Gas & Consumable Fuels) | 1.8 | 1.8 |
| | 10.1 | |
Top Five Market Sectors as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Financials | 17.2 | 20.6 |
| Information Technology | 14.5 | 17.3 |
| Consumer Staples | 12.9 | 14.5 |
| Health Care | 12.6 | 13.2 |
| Consumer Discretionary | 12.0 | 13.3 |
Top Five Countries as of April 30, 2016
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| United States of America | 38.7 | 41.4 |
| Japan | 10.9 | 11.4 |
| United Kingdom | 10.5 | 12.9 |
| Ireland | 4.2 | 4.1 |
| Canada | 3.5 | 3.3 |
Percentages are adjusted for the effect of futures contracts, if applicable.
Asset Allocation (% of fund's net assets)
| As of April 30, 2016 |
| | Stocks | 88.9% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 11.1% |
| As of October 31, 2015 |
| | Stocks | 96.0% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 4.0% |
Investments April 30, 2016 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 88.9% | | | |
| | | Shares | Value |
| Australia - 0.0% | | | |
| Telstra Corp. Ltd. | | 559 | $2,270 |
| Bailiwick of Jersey - 1.5% | | | |
| Shire PLC | | 1,470 | 91,731 |
| Wolseley PLC | | 3,024 | 169,381 |
|
| TOTAL BAILIWICK OF JERSEY | | | 261,112 |
|
| Belgium - 0.6% | | | |
| Anheuser-Busch InBev SA NV | | 800 | 99,024 |
| Canada - 3.5% | | | |
| Constellation Software, Inc. | | 220 | 85,977 |
| Fairfax Financial Holdings Ltd. (sub. vtg.) | | 160 | 85,758 |
| Imperial Oil Ltd. | | 4,870 | 161,505 |
| PrairieSky Royalty Ltd. | | 1,110 | 23,373 |
| Suncor Energy, Inc. | | 8,600 | 252,441 |
|
| TOTAL CANADA | | | 609,054 |
|
| Cayman Islands - 0.3% | | | |
| SITC International Holdings Co. Ltd. | | 105,000 | 56,749 |
| Chile - 0.4% | | | |
| Vina San Pedro SA | | 7,534,071 | 74,237 |
| France - 2.8% | | | |
| Bouygues SA | | 1,494 | 49,816 |
| Cegedim SA (a) | | 1,000 | 27,458 |
| Renault SA | | 1,289 | 124,395 |
| Sanofi SA | | 2,623 | 216,205 |
| VINCI SA | | 792 | 59,165 |
|
| TOTAL FRANCE | | | 477,039 |
|
| Germany - 1.6% | | | |
| adidas AG | | 840 | 108,303 |
| AURELIUS AG | | 1,469 | 87,838 |
| SAP AG | | 942 | 73,910 |
|
| TOTAL GERMANY | | | 270,051 |
|
| Hong Kong - 1.8% | | | |
| HKT Trust/HKT Ltd. unit | | 90,280 | 129,772 |
| Techtronic Industries Co. Ltd. | | 50,000 | 187,434 |
|
| TOTAL HONG KONG | | | 317,206 |
|
| Indonesia - 0.5% | | | |
| PT Bank Central Asia Tbk | | 91,300 | 90,345 |
| Ireland - 4.2% | | | |
| Accenture PLC Class A | | 2,941 | 332,098 |
| Greencore Group PLC | | 26,121 | 137,705 |
| Medtronic PLC | | 3,153 | 249,560 |
|
| TOTAL IRELAND | | | 719,363 |
|
| Isle of Man - 1.1% | | | |
| Optimal Payments PLC (a) | | 16,800 | 93,574 |
| Playtech Ltd. | | 8,739 | 102,727 |
|
| TOTAL ISLE OF MAN | | | 196,301 |
|
| Israel - 3.1% | | | |
| Bezeq The Israel Telecommunication Corp. Ltd. | | 56,800 | 121,157 |
| Cellcom Israel Ltd. (Israel) (a) | | 10,478 | 78,632 |
| Partner Communications Co. Ltd. (a) | | 11,358 | 59,093 |
| Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. | | 900 | 36,950 |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | | 4,310 | 234,680 |
|
| TOTAL ISRAEL | | | 530,512 |
|
| Italy - 0.2% | | | |
| Astaldi SpA | | 7,800 | 38,244 |
| Japan - 10.9% | | | |
| A/S One Corp. | | 2,200 | 79,328 |
| Astellas Pharma, Inc. | | 17,700 | 238,642 |
| Broadleaf Co. Ltd. | | 4,700 | 46,446 |
| Casio Computer Co. Ltd. | | 2,100 | 39,957 |
| Daiichikosho Co. Ltd. | | 4,300 | 180,264 |
| Daito Trust Construction Co. Ltd. | | 900 | 127,289 |
| Hoya Corp. | | 6,800 | 260,401 |
| Inaba Denki Sangyo Co. Ltd. | | 500 | 15,699 |
| Japan Tobacco, Inc. | | 2,800 | 114,402 |
| KDDI Corp. | | 5,200 | 149,790 |
| NEC Corp. | | 24,000 | 58,411 |
| Nippon Telegraph & Telephone Corp. | | 1,600 | 71,601 |
| Olympus Corp. | | 4,200 | 163,618 |
| ORIX Corp. | | 3,500 | 49,507 |
| Shinsei Bank Ltd. | | 91,000 | 127,543 |
| Sony Corp. | | 2,400 | 58,132 |
| Tsuruha Holdings, Inc. | | 1,000 | 95,916 |
| USS Co. Ltd. | | 1,100 | 17,400 |
|
| TOTAL JAPAN | | | 1,894,346 |
|
| Netherlands - 1.1% | | | |
| Altice NV Class A (a) | | 3,954 | 59,990 |
| LyondellBasell Industries NV Class A | | 1,521 | 125,741 |
|
| TOTAL NETHERLANDS | | | 185,731 |
|
| Singapore - 0.5% | | | |
| United Overseas Bank Ltd. | | 6,525 | 90,244 |
| South Africa - 1.0% | | | |
| Capitec Bank Holdings Ltd. | | 2,200 | 91,346 |
| EOH Holdings Ltd. | | 3,900 | 37,958 |
| Lewis Group Ltd. | | 11,600 | 39,122 |
|
| TOTAL SOUTH AFRICA | | | 168,426 |
|
| Spain - 0.5% | | | |
| Amadeus IT Holding SA Class A | | 1,900 | 86,458 |
| Sweden - 0.5% | | | |
| Sandvik AB | | 8,800 | 90,296 |
| Switzerland - 1.5% | | | |
| Banque Cantonale Vaudoise | | 110 | 75,852 |
| Chubb Ltd. | | 1,190 | 140,253 |
| Sika AG | | 10 | 42,562 |
|
| TOTAL SWITZERLAND | | | 258,667 |
|
| Taiwan - 2.1% | | | |
| ECLAT Textile Co. Ltd. | | 4,022 | 45,881 |
| King's Town Bank | | 27,000 | 18,806 |
| Taiwan Semiconductor Manufacturing Co. Ltd. | | 66,000 | 302,759 |
|
| TOTAL TAIWAN | | | 367,446 |
|
| United Kingdom - 10.5% | | | |
| British American Tobacco PLC (United Kingdom) | | 2,888 | 176,087 |
| Hilton Food Group PLC | | 11,081 | 91,155 |
| Howden Joinery Group PLC | | 8,754 | 63,187 |
| Imperial Tobacco Group PLC | | 3,310 | 179,842 |
| ITV PLC | | 60,142 | 197,898 |
| Lloyds Banking Group PLC | | 192,616 | 189,055 |
| Micro Focus International PLC | | 10,284 | 229,755 |
| Reckitt Benckiser Group PLC | | 1,254 | 122,163 |
| SABMiller PLC | | 1,448 | 88,544 |
| St. James's Place Capital PLC | | 6,387 | 80,912 |
| The Restaurant Group PLC | | 4,635 | 18,631 |
| WH Smith PLC | | 9,161 | 224,209 |
| Whitbread PLC | | 1,325 | 74,963 |
| William Hill PLC | | 12,339 | 56,377 |
| Wuliangye Yibin Co. Ltd. ELS (UBS Warrant Programme) warrants 3/7/19 (a)(b) | | 5,700 | 25,004 |
|
| TOTAL UNITED KINGDOM | | | 1,817,782 |
|
| United States of America - 38.7% | | | |
| American Tower Corp. | | 1,512 | 158,579 |
| Amgen, Inc. | | 842 | 133,289 |
| Apple, Inc. | | 3,428 | 321,341 |
| Bank of America Corp. | | 13,135 | 191,246 |
| BWX Technologies, Inc. | | 5,026 | 167,818 |
| C.H. Robinson Worldwide, Inc. | | 430 | 30,517 |
| Chevron Corp. | | 3,123 | 319,108 |
| CME Group, Inc. | | 565 | 51,929 |
| Comcast Corp. Class A | | 2,359 | 143,333 |
| ConocoPhillips Co. | | 2,579 | 123,250 |
| CVB Financial Corp. | | 6,426 | 110,399 |
| CVS Health Corp. | | 2,844 | 285,822 |
| Danaher Corp. | | 1,984 | 191,952 |
| Deluxe Corp. | | 407 | 25,551 |
| Diamond Hill Investment Group, Inc. | | 588 | 103,053 |
| Dr. Pepper Snapple Group, Inc. | | 1,253 | 113,910 |
| E.I. du Pont de Nemours & Co. | | 1,674 | 110,333 |
| EMC Corp. | | 4,049 | 105,719 |
| Exxon Mobil Corp. | | 3,005 | 265,642 |
| First NBC Bank Holding Co. (a) | | 400 | 8,696 |
| General Electric Co. | | 10,604 | 326,073 |
| H&R Block, Inc. | | 3,076 | 62,258 |
| IBM Corp. | | 1,162 | 169,582 |
| Johnson & Johnson | | 3,946 | 442,267 |
| JPMorgan Chase & Co. | | 4,350 | 274,920 |
| McDonald's Corp. | | 882 | 111,564 |
| McGraw Hill Financial, Inc. | | 1,332 | 142,324 |
| Microsoft Corp. | | 5,482 | 273,387 |
| Molson Coors Brewing Co. Class B | | 701 | 67,037 |
| MSCI, Inc. Class A | | 1,221 | 92,723 |
| Oracle Corp. | | 4,790 | 190,929 |
| PepsiCo, Inc. | | 1,676 | 172,561 |
| Procter & Gamble Co. | | 2,403 | 192,528 |
| Roper Technologies, Inc. | | 475 | 83,643 |
| SunTrust Banks, Inc. | | 3,008 | 125,554 |
| Target Corp. | | 2,910 | 231,345 |
| The Coca-Cola Co. | | 4,079 | 182,739 |
| U.S. Bancorp | | 4,581 | 195,563 |
| United Technologies Corp. | | 973 | 101,552 |
| VF Corp. | | 815 | 51,386 |
| Wells Fargo & Co. | | 5,171 | 258,447 |
|
| TOTAL UNITED STATES OF AMERICA | | | 6,709,869 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $14,375,145) | | | 15,410,772 |
| | | Principal Amount(c) | Value |
|
| Nonconvertible Bonds - 0.0% | | | |
| Canada - 0.0% | | | |
| Constellation Software, Inc. 7.6% 3/31/40(d) | | | |
| (Cost $429) | | 500 | 434 |
| | | Shares | Value |
|
| Money Market Funds - 10.7% | | | |
| Fidelity Cash Central Fund, 0.38% (e) | | | |
| (Cost $1,842,438) | | 1,842,438 | 1,842,438 |
| TOTAL INVESTMENT PORTFOLIO - 99.6% | | | |
| (Cost $16,218,012) | | | 17,253,644 |
| NET OTHER ASSETS (LIABILITIES) - 0.4% | | | 77,799 |
| NET ASSETS - 100% | | | $17,331,443 |
Currency Abbreviations
CAD – Canadian dollar
Security Type Abbreviations
ELS – Equity-Linked Security
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) 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 $25,004 or 0.1% of net assets.
(c) Amount is stated in United States dollars unless otherwise noted.
(d) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(e) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $1,368 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2016, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Consumer Discretionary | $2,096,029 | $1,612,842 | $483,187 | $-- |
| Consumer Staples | 2,230,622 | 1,722,054 | 508,568 | -- |
| Energy | 1,145,319 | 1,145,319 | -- | -- |
| Financials | 2,993,185 | 2,474,787 | 518,398 | -- |
| Health Care | 2,137,179 | 1,087,254 | 1,049,925 | -- |
| Industrials | 1,406,456 | 1,164,627 | 241,829 | -- |
| Information Technology | 2,511,031 | 2,029,505 | 481,526 | -- |
| Materials | 278,636 | 278,636 | -- | -- |
| Telecommunication Services | 612,315 | 258,882 | 353,433 | -- |
| Corporate Bonds | 434 | -- | 434 | -- |
| Money Market Funds | 1,842,438 | 1,842,438 | -- | -- |
| Total Investments in Securities: | $17,253,644 | $13,616,344 | $3,637,300 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2016. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
| Transfers | Total |
| Level 1 to Level 2 | $0 |
| Level 2 to Level 1 | $266,858 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | April 30, 2016 (Unaudited) |
| Assets | | |
Investment in securities, at value — See accompanying schedule:
Unaffiliated issuers (cost $14,375,574) | $15,411,206 | |
| Fidelity Central Funds (cost $1,842,438) | 1,842,438 | |
| Total Investments (cost $16,218,012) | | $17,253,644 |
| Cash | | 581 |
| Foreign currency held at value (cost $82) | | 100 |
| Receivable for investments sold | | 35,798 |
| Receivable for fund shares sold | | 72,822 |
| Dividends receivable | | 66,289 |
| Interest receivable | | 3 |
| Distributions receivable from Fidelity Central Funds | | 443 |
| Prepaid expenses | | 7 |
| Receivable from investment adviser for expense reductions | | 37,107 |
| Other receivables | | 998 |
| Total assets | | 17,467,792 |
| Liabilities | | |
| Payable for fund shares redeemed | $83,988 | |
| Accrued management fee | 10,007 | |
| Distribution and service plan fees payable | 5,074 | |
| Other affiliated payables | 4,133 | |
| Other payables and accrued expenses | 33,147 | |
| Total liabilities | | 136,349 |
| Net Assets | | $17,331,443 |
| Net Assets consist of: | | |
| Paid in capital | | $16,515,605 |
| Undistributed net investment income | | 34,503 |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (255,617) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 1,036,952 |
| Net Assets | | $17,331,443 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($5,574,347 ÷ 452,035 shares) | | $12.33 |
| Maximum offering price per share (100/94.25 of $12.33) | | $13.08 |
| Class T: | | |
| Net Asset Value and redemption price per share ($2,538,110 ÷ 205,907 shares) | | $12.33 |
| Maximum offering price per share (100/96.50 of $12.33) | | $12.78 |
| Class C: | | |
| Net Asset Value and offering price per share ($3,512,049 ÷ 285,919 shares)(a) | | $12.28 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($5,706,937 ÷ 462,107 shares) | | $12.35 |
(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.
Statement of Operations
| | | Six months ended April 30, 2016 (Unaudited) |
| Investment Income | | |
| Dividends | | $178,349 |
| Interest | | 16 |
| Income from Fidelity Central Funds | | 1,368 |
| Income before foreign taxes withheld | | 179,733 |
| Less foreign taxes withheld | | (7,330) |
| Total income | | 172,403 |
| Expenses | | |
| Management fee | $48,492 | |
| Transfer agent fees | 19,399 | |
| Distribution and service plan fees | 28,296 | |
| Accounting fees and expenses | 3,591 | |
| Custodian fees and expenses | 8,524 | |
| Independent trustees' compensation | 28 | |
| Registration fees | 47,951 | |
| Audit | 38,347 | |
| Legal | 222 | |
| Miscellaneous | 316 | |
| Total expenses before reductions | 195,166 | |
| Expense reductions | (83,701) | 111,465 |
| Net investment income (loss) | | 60,938 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (189,990) | |
| Foreign currency transactions | 629 | |
| Total net realized gain (loss) | | (189,361) |
Change in net unrealized appreciation (depreciation) on:
Investment securities | 254,169 | |
| Assets and liabilities in foreign currencies | 1,793 | |
| Total change in net unrealized appreciation (depreciation) | | 255,962 |
| Net gain (loss) | | 66,601 |
| Net increase (decrease) in net assets resulting from operations | | $127,539 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended April 30, 2016 (Unaudited) | Year ended October 31, 2015 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $60,938 | $77,738 |
| Net realized gain (loss) | (189,361) | 171,178 |
| Change in net unrealized appreciation (depreciation) | 255,962 | (63,591) |
| Net increase (decrease) in net assets resulting from operations | 127,539 | 185,325 |
| Distributions to shareholders from net investment income | (36,655) | (79,760) |
| Distributions to shareholders from net realized gain | (150,997) | (574,146) |
| Total distributions | (187,652) | (653,906) |
| Share transactions - net increase (decrease) | 5,963,159 | 1,350,797 |
| Total increase (decrease) in net assets | 5,903,046 | 882,216 |
| Net Assets | | |
| Beginning of period | 11,428,397 | 10,546,181 |
| End of period (including undistributed net investment income of $34,503 and undistributed net investment income of $10,220, respectively) | $17,331,443 | $11,428,397 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Equity Income Fund Class A
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | | | | | |
| Net asset value, beginning of period | $12.50 | $12.96 | $12.20 | $10.15 | $10.00 |
| Income from Investment Operations | | | | | |
| Net investment income (loss)B | .06 | .12 | .25C | .19 | .09 |
| Net realized and unrealized gain (loss) | (.03) | .24 | .91 | 2.05 | .16 |
| Total from investment operations | .03 | .36 | 1.16 | 2.24 | .25 |
| Distributions from net investment income | (.04) | (.11) | (.22) | (.18) | (.10) |
| Distributions from net realized gain | (.16) | (.71) | (.18) | (.01) | – |
| Total distributions | (.20) | (.82) | (.40) | (.19) | (.10) |
| Net asset value, end of period | $12.33 | $12.50 | $12.96 | $12.20 | $10.15 |
| Total ReturnD,E,F | .26% | 2.85% | 9.70% | 22.28% | 2.51% |
| Ratios to Average Net AssetsG,H | | | | | |
| Expenses before reductions | 2.65%I | 2.42% | 2.63% | 4.37% | 7.41%I |
| Expenses net of fee waivers, if any | 1.45%I | 1.45% | 1.45% | 1.45% | 1.45%I |
| Expenses net of all reductions | 1.45%I | 1.44% | 1.45% | 1.43% | 1.44%I |
| Net investment income (loss) | 1.03%I | .95% | 1.95%C | 1.66% | 1.89%I |
| Supplemental Data | | | | | |
| Net assets, end of period (000 omitted) | $5,574 | $4,552 | $4,025 | $2,115 | $756 |
| Portfolio turnover rateJ | 34%I | 87% | 112% | 78% | 36%K |
A For the period May 2, 2012 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.25%.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Equity Income Fund Class T
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | | | | | |
| Net asset value, beginning of period | $12.49 | $12.95 | $12.20 | $10.14 | $10.00 |
| Income from Investment Operations | | | | | |
| Net investment income (loss)B | .05 | .09 | .21C | .16 | .08 |
| Net realized and unrealized gain (loss) | (.02) | .24 | .91 | 2.06 | .15 |
| Total from investment operations | .03 | .33 | 1.12 | 2.22 | .23 |
| Distributions from net investment income | (.03) | (.08) | (.19) | (.15) | (.09) |
| Distributions from net realized gain | (.16) | (.71) | (.18) | (.01) | – |
| Total distributions | (.19) | (.79) | (.37) | (.16) | (.09) |
| Net asset value, end of period | $12.33 | $12.49 | $12.95 | $12.20 | $10.14 |
| Total ReturnD,E,F | .20% | 2.59% | 9.34% | 22.11% | 2.31% |
| Ratios to Average Net AssetsG,H | | | | | |
| Expenses before reductions | 2.93%I | 2.73% | 2.96% | 4.80% | 7.68%I |
| Expenses net of fee waivers, if any | 1.70%I | 1.70% | 1.70% | 1.70% | 1.70%I |
| Expenses net of all reductions | 1.70%I | 1.69% | 1.70% | 1.68% | 1.69%I |
| Net investment income (loss) | .78%I | .70% | 1.70%C | 1.41% | 1.64%I |
| Supplemental Data | | | | | |
| Net assets, end of period (000 omitted) | $2,538 | $2,484 | $2,014 | $1,270 | $714 |
| Portfolio turnover rateJ | 34%I | 87% | 112% | 78% | 36%K |
A For the period May 2, 2012 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.00%.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Equity Income Fund Class C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | | | | | |
| Net asset value, beginning of period | $12.46 | $12.93 | $12.18 | $10.14 | $10.00 |
| Income from Investment Operations | | | | | |
| Net investment income (loss)B | .02 | .03 | .15C | .10 | .06 |
| Net realized and unrealized gain (loss) | (.03) | .24 | .91 | 2.06 | .15 |
| Total from investment operations | (.01) | .27 | 1.06 | 2.16 | .21 |
| Distributions from net investment income | (.01) | (.05) | (.14) | (.11) | (.07) |
| Distributions from net realized gain | (.16) | (.70) | (.17) | (.01) | – |
| Total distributions | (.17) | (.74)D | (.31) | (.12) | (.07) |
| Net asset value, end of period | $12.28 | $12.46 | $12.93 | $12.18 | $10.14 |
| Total ReturnE,F,G | (.14)% | 2.10% | 8.83% | 21.40% | 2.12% |
| Ratios to Average Net AssetsH,I | | | | | |
| Expenses before reductions | 3.45%J | 3.23% | 3.43% | 5.26% | 8.19%J |
| Expenses net of fee waivers, if any | 2.20%J | 2.20% | 2.20% | 2.20% | 2.20%J |
| Expenses net of all reductions | 2.20%J | 2.19% | 2.20% | 2.18% | 2.19%J |
| Net investment income (loss) | .28%J | .20% | 1.20%C | .91% | 1.14%J |
| Supplemental Data | | | | | |
| Net assets, end of period (000 omitted) | $3,512 | $3,225 | $3,173 | $1,445 | $666 |
| Portfolio turnover rateK | 34%J | 87% | 112% | 78% | 36%L |
A For the period May 2, 2012 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .50%.
D Total distributions of $.74 per share is comprised of distributions from net investment income of $.046 and distributions from net realized gain of $.695 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H 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.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
L Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Global Equity Income Fund Class I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | | | | | |
| Net asset value, beginning of period | $12.51 | $12.97 | $12.22 | $10.15 | $10.00 |
| Income from Investment Operations | | | | | |
| Net investment income (loss)B | .08 | .15 | .28C | .21 | .10 |
| Net realized and unrealized gain (loss) | (.02) | .24 | .90 | 2.07 | .16 |
| Total from investment operations | .06 | .39 | 1.18 | 2.28 | .26 |
| Distributions from net investment income | (.06) | (.14) | (.25) | (.20) | (.11) |
| Distributions from net realized gain | (.16) | (.71) | (.18) | (.01) | – |
| Total distributions | (.22) | (.85) | (.43) | (.21) | (.11) |
| Net asset value, end of period | $12.35 | $12.51 | $12.97 | $12.22 | $10.15 |
| Total ReturnD,E | .46% | 3.09% | 9.86% | 22.71% | 2.61% |
| Ratios to Average Net AssetsF,G | | | | | |
| Expenses before reductions | 2.34%H | 2.11% | 2.35% | 4.46% | 7.23%H |
| Expenses net of fee waivers, if any | 1.20%H | 1.20% | 1.20% | 1.20% | 1.20%H |
| Expenses net of all reductions | 1.20%H | 1.19% | 1.20% | 1.18% | 1.19%H |
| Net investment income (loss) | 1.29%H | 1.20% | 2.20%C | 1.91% | 2.14%H |
| Supplemental Data | | | | | |
| Net assets, end of period (000 omitted) | $5,707 | $1,167 | $1,334 | $1,231 | $939 |
| Portfolio turnover rateI | 34%H | 87% | 112% | 78% | 36%J |
A For the period May 2, 2012 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.50%.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2016
1. Organization.
Fidelity Advisor Global Equity Income Fund (the Fund) is a fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of April 30, 2016, including information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
| Gross unrealized appreciation | $1,624,934 |
| Gross unrealized depreciation | (661,671) |
| Net unrealized appreciation (depreciation) on securities | $963,263 |
| Tax cost | $16,290,381 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $6,577,542 and $2,209,538, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .70% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
| Class A | -% | .25% | $6,162 | $255 |
| Class T | .25% | .25% | 6,210 | 625 |
| Class C | .75% | .25% | 15,924 | 15,924 |
| | | | $28,296 | $16,804 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, and Class C redemptions. The deferred sales charges range from 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $4,099 |
| Class T | 680 |
| Class C(a) | 764 |
| | $5,543 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of 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
Class-Level Average
Net Assets(a) |
| Class A | $6,847 | .28 |
| Class T | 4,038 | .32 |
| Class C | 4,960 | .31 |
| Class I | 3,554 | .22 |
| | $19,399 | |
(a) Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The fee is based on the level of average net assets for each month.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $39 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $12 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Expense Reductions.
The investment adviser contractually agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. This reimbursement will remain in place through December 31, 2016. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| | Expense
Limitations | Reimbursement |
| Class A | 1.45% | $29,699 |
| Class T | 1.70% | 15,261 |
| Class C | 2.20% | 19,885 |
| Class I | 1.20% | 18,813 |
| | | $83,658 |
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $1.
In addition, during the period the investments adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $42.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| From net investment income | | |
| Class A | $17,402 | $37,903 |
| Class T | 5,464 | 15,415 |
| Class C | 1,297 | 12,164 |
| Class I | 12,492 | 14,278 |
| Total | $36,655 | $79,760 |
| From net realized gain | | |
| Class A | $60,195 | $222,759 |
| Class T | 32,288 | 109,345 |
| Class C | 41,507 | 168,198 |
| Class I | 17,007 | 73,844 |
| Total | $150,997 | $574,146 |
9. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| Class A | | | | |
| Shares sold | 127,899 | 172,016 | $1,552,736 | $2,191,371 |
| Reinvestment of distributions | 5,958 | 19,779 | 74,045 | 247,241 |
| Shares redeemed | (46,090) | (138,207) | (563,205) | (1,716,684) |
| Net increase (decrease) | 87,767 | 53,588 | $1,063,576 | $721,928 |
| Class T | | | | |
| Shares sold | 30,261 | 93,137 | $366,153 | $1,178,554 |
| Reinvestment of distributions | 3,035 | 9,968 | 37,747 | 124,661 |
| Shares redeemed | (26,303) | (59,695) | (317,949) | (748,248) |
| Net increase (decrease) | 6,993 | 43,410 | $85,951 | $554,967 |
| Class C | | | | |
| Shares sold | 72,561 | 120,269 | $884,490 | $1,517,646 |
| Reinvestment of distributions | 3,301 | 14,053 | 41,004 | 175,518 |
| Shares redeemed | (48,893) | (120,843) | (579,995) | (1,499,976) |
| Net increase (decrease) | 26,969 | 13,479 | $345,499 | $193,188 |
| Class I | | | | |
| Shares sold | 402,953 | 25,924 | $4,882,628 | $328,076 |
| Reinvestment of distributions | 1,788 | 6,890 | 22,214 | 86,194 |
| Shares redeemed | (35,864) | (42,440) | (436,709) | (533,556) |
| Net increase (decrease) | 368,877 | (9,626) | $4,468,133 | $(119,286) |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
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, 2015 to April 30, 2016).
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.
| | Annualized Expense Ratio-A | Beginning
Account Value
November 1, 2015 | Ending
Account Value
April 30, 2016 | Expenses Paid
During Period-B
November 1, 2015
to April 30, 2016 |
| Class A | 1.45% | | | |
| Actual | | $1,000.00 | $1,002.60 | $7.22 |
| Hypothetical-C | | $1,000.00 | $1,017.65 | $7.27 |
| Class T | 1.70% | | | |
| Actual | | $1,000.00 | $1,002.00 | $8.56 |
| Hypothetical-C | | $1,000.00 | $1,016.31 | $8.62 |
| Class C | 2.20% | | | |
| Actual | | $1,000.00 | $998.60 | $10.88 |
| Hypothetical-C | | $1,000.00 | $1,013.97 | $10.97 |
| Class I | 1.20% | | | |
| Actual | | $1,000.00 | $1,004.60 | $5.93 |
| Hypothetical-C | | $1,000.00 | $1,018.95 | $5.97 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
C 5% return per year before expenses
AGED-SANN-0616
1.938154.103
Fidelity Advisor® Value Leaders Fund
Class I
Semi-Annual Report April 30, 2016 |
|
Contents
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. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Berkshire Hathaway, Inc. Class B | 4.3 | 3.2 |
| EMC Corp. | 4.2 | 2.8 |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | 4.1 | 4.3 |
| JPMorgan Chase & Co. | 3.5 | 3.7 |
| Wells Fargo & Co. | 3.3 | 3.4 |
| Alphabet, Inc. Class A | 3.2 | 3.2 |
| SanDisk Corp. | 3.1 | 0.0 |
| Johnson & Johnson | 2.6 | 3.6 |
| Allergan PLC | 2.5 | 0.0 |
| CF Industries Holdings, Inc. | 2.4 | 1.9 |
| | 33.2 | |
Top Five Market Sectors as of April 30, 2016
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Financials | 26.6 | 27.8 |
| Information Technology | 23.0 | 20.6 |
| Health Care | 16.2 | 17.0 |
| Consumer Discretionary | 9.8 | 10.4 |
| Energy | 7.8 | 8.6 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2016* |
| | Stocks | 98.1% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 1.9% |
* Foreign investments - 25.4%
| As of October 31, 2015* |
| | Stocks | 98.7% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 1.3% |
* Foreign investments - 19.9%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments April 30, 2016 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 98.1% | | | |
| | | Shares | Value |
| CONSUMER DISCRETIONARY - 9.8% | | | |
| Media - 7.9% | | | |
| Cablevision Systems Corp. - NY Group Class A | | 6,300 | $210,357 |
| CBS Corp. Class B | | 11,900 | 665,329 |
| Starz Series A (a) | | 16,700 | 454,407 |
| Twenty-First Century Fox, Inc. Class A | | 21,200 | 641,512 |
| Viacom, Inc. Class B (non-vtg.) | | 16,300 | 666,670 |
| | | | 2,638,275 |
| Specialty Retail - 0.8% | | | |
| GNC Holdings, Inc. | | 11,700 | 285,012 |
| Textiles, Apparel & Luxury Goods - 1.1% | | | |
| PVH Corp. | | 3,700 | 353,720 |
|
| TOTAL CONSUMER DISCRETIONARY | | | 3,277,007 |
|
| CONSUMER STAPLES - 2.9% | | | |
| Beverages - 1.8% | | | |
| C&C Group PLC | | 134,026 | 602,049 |
| Food & Staples Retailing - 1.1% | | | |
| Rite Aid Corp. (a) | | 43,200 | 347,760 |
| Safeway, Inc.: | | | |
| rights (a) | | 4,300 | 0 |
| rights (a) | | 4,300 | 774 |
| | | | 348,534 |
|
| TOTAL CONSUMER STAPLES | | | 950,583 |
|
| ENERGY - 7.8% | | | |
| Energy Equipment & Services - 0.3% | | | |
| BW Offshore Ltd. | | 484,800 | 105,969 |
| Oil, Gas & Consumable Fuels - 7.5% | | | |
| Phillips 66 Co. | | 5,100 | 418,761 |
| Suncor Energy, Inc. | | 17,400 | 510,753 |
| Teekay Corp. | | 52,500 | 588,000 |
| Teekay LNG Partners LP | | 23,200 | 318,768 |
| Teekay Offshore Partners LP | | 109,100 | 651,327 |
| | | | 2,487,609 |
|
| TOTAL ENERGY | | | 2,593,578 |
|
| FINANCIALS - 26.6% | | | |
| Banks - 8.6% | | | |
| JPMorgan Chase & Co. | | 18,325 | 1,158,140 |
| U.S. Bancorp | | 13,871 | 592,153 |
| Wells Fargo & Co. | | 22,026 | 1,100,859 |
| | | | 2,851,152 |
| Capital Markets - 1.4% | | | |
| Goldman Sachs Group, Inc. | | 2,900 | 475,919 |
| Consumer Finance - 3.1% | | | |
| Capital One Financial Corp. | | 6,600 | 477,774 |
| Discover Financial Services | | 9,900 | 557,073 |
| | | | 1,034,847 |
| Diversified Financial Services - 4.3% | | | |
| Berkshire Hathaway, Inc. Class B (a) | | 9,700 | 1,411,158 |
| Insurance - 7.0% | | | |
| Allstate Corp. | | 7,740 | 503,487 |
| Chubb Ltd. | | 4,800 | 565,728 |
| Prudential PLC | | 31,461 | 621,025 |
| The Travelers Companies, Inc. | | 5,900 | 648,410 |
| | | | 2,338,650 |
| Real Estate Investment Trusts - 0.6% | | | |
| Annaly Capital Management, Inc. | | 19,400 | 202,148 |
| Real Estate Management & Development - 1.6% | | | |
| CBRE Group, Inc. (a) | | 17,700 | 524,451 |
|
| TOTAL FINANCIALS | | | 8,838,325 |
|
| HEALTH CARE - 16.2% | | | |
| Biotechnology - 3.6% | | | |
| Amgen, Inc. | | 4,300 | 680,690 |
| Baxalta, Inc. | | 11,600 | 486,620 |
| Dyax Corp. rights 12/31/19 (a) | | 15,500 | 36,580 |
| | | | 1,203,890 |
| Health Care Providers & Services - 1.9% | | | |
| Cigna Corp. | | 4,500 | 623,430 |
| Pharmaceuticals - 10.7% | | | |
| Allergan PLC (a) | | 3,800 | 822,928 |
| Johnson & Johnson | | 7,800 | 874,224 |
| Sanofi SA sponsored ADR | | 12,100 | 497,310 |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | | 24,900 | 1,355,805 |
| | | | 3,550,267 |
|
| TOTAL HEALTH CARE | | | 5,377,587 |
|
| INDUSTRIALS - 5.7% | | | |
| Aerospace & Defense - 1.0% | | | |
| United Technologies Corp. | | 3,300 | 344,421 |
| Machinery - 2.2% | | | |
| Deere & Co. (b) | | 8,600 | 723,346 |
| Professional Services - 1.5% | | | |
| Dun & Bradstreet Corp. | | 4,500 | 496,845 |
| Trading Companies & Distributors - 1.0% | | | |
| AerCap Holdings NV (a) | | 8,100 | 324,081 |
|
| TOTAL INDUSTRIALS | | | 1,888,693 |
|
| INFORMATION TECHNOLOGY - 23.0% | | | |
| Communications Equipment - 3.4% | | | |
| Cisco Systems, Inc. | | 21,164 | 581,798 |
| Harris Corp. | | 6,900 | 552,069 |
| | | | 1,133,867 |
| Internet Software& Services - 4.4% | | | |
| Alphabet, Inc. Class A | | 1,483 | 1,049,786 |
| eBay, Inc. (a) | | 16,000 | 390,880 |
| | | | 1,440,666 |
| IT Services - 1.6% | | | |
| The Western Union Co. | | 26,300 | 526,000 |
| Software - 1.9% | | | |
| Oracle Corp. | | 8,800 | 350,768 |
| VMware, Inc. Class A (a)(b) | | 5,100 | 290,241 |
| | | | 641,009 |
| Technology Hardware, Storage & Peripherals - 11.7% | | | |
| Apple, Inc. | | 7,400 | 693,676 |
| EMC Corp. | | 52,800 | 1,378,608 |
| Samsung Electronics Co. Ltd. | | 712 | 773,727 |
| SanDisk Corp. | | 13,900 | 1,044,307 |
| | | | 3,890,318 |
|
| TOTAL INFORMATION TECHNOLOGY | | | 7,631,860 |
|
| MATERIALS - 4.5% | | | |
| Chemicals - 4.5% | | | |
| CF Industries Holdings, Inc. | | 24,400 | 806,908 |
| LyondellBasell Industries NV Class A | | 8,200 | 677,894 |
| | | | 1,484,802 |
| UTILITIES - 1.6% | | | |
| Electric Utilities - 1.6% | | | |
| Exelon Corp. | | 15,700 | 550,913 |
| TOTAL COMMON STOCKS | | | |
| (Cost $32,525,833) | | | 32,593,348 |
|
| Money Market Funds - 4.4% | | | |
| Fidelity Cash Central Fund, 0.38% (c) | | 632,112 | 632,112 |
| Fidelity Securities Lending Cash Central Fund, 0.42% (c)(d) | | 834,625 | 834,625 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $1,466,737) | | | 1,466,737 |
| TOTAL INVESTMENT PORTFOLIO - 102.5% | | | |
| (Cost $33,992,570) | | | 34,060,085 |
| NET OTHER ASSETS (LIABILITIES) - (2.5)% | | | (821,581) |
| NET ASSETS - 100% | | | $33,238,504 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $1,025 |
| Fidelity Securities Lending Cash Central Fund | 2,599 |
| Total | $3,624 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2016, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Consumer Discretionary | $3,277,007 | $3,277,007 | $-- | $-- |
| Consumer Staples | 950,583 | 949,809 | -- | 774 |
| Energy | 2,593,578 | 2,593,578 | -- | -- |
| Financials | 8,838,325 | 8,217,300 | 621,025 | -- |
| Health Care | 5,377,587 | 5,341,007 | -- | 36,580 |
| Industrials | 1,888,693 | 1,888,693 | -- | -- |
| Information Technology | 7,631,860 | 7,631,860 | -- | -- |
| Materials | 1,484,802 | 1,484,802 | -- | -- |
| Utilities | 550,913 | 550,913 | -- | -- |
| Money Market Funds | 1,466,737 | 1,466,737 | -- | -- |
| Total Investments in Securities: | $34,060,085 | $33,401,706 | $621,025 | $37,354 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 74.6% |
| Marshall Islands | 4.7% |
| Ireland | 4.3% |
| Israel | 4.1% |
| Netherlands | 3.1% |
| Korea (South) | 2.3% |
| United Kingdom | 1.9% |
| Switzerland | 1.7% |
| Canada | 1.5% |
| France | 1.5% |
| Others (Individually Less Than 1%) | 0.3% |
| | 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | April 30, 2016 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $817,373) — See accompanying schedule:
Unaffiliated issuers (cost $32,525,833) | $32,593,348 | |
| Fidelity Central Funds (cost $1,466,737) | 1,466,737 | |
| Total Investments (cost $33,992,570) | | $34,060,085 |
| Receivable for investments sold | | 67,088 |
| Receivable for fund shares sold | | 8,187 |
| Dividends receivable | | 49,051 |
| Distributions receivable from Fidelity Central Funds | | 686 |
| Prepaid expenses | | 22 |
| Receivable from investment adviser for expense reductions | | 10,340 |
| Other receivables | | 599 |
| Total assets | | 34,196,058 |
| Liabilities | | |
| Payable for investments purchased | $29,351 | |
| Payable for fund shares redeemed | 30,986 | |
| Accrued management fee | 17,020 | |
| Distribution and service plan fees payable | 11,348 | |
| Other affiliated payables | 7,811 | |
| Other payables and accrued expenses | 26,413 | |
| Collateral on securities loaned, at value | 834,625 | |
| Total liabilities | | 957,554 |
| Net Assets | | $33,238,504 |
| Net Assets consist of: | | |
| Paid in capital | | $58,129,253 |
| Undistributed net investment income | | 25,645 |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (24,984,439) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 68,045 |
| Net Assets | | $33,238,504 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($17,920,870 ÷ 1,123,250 shares) | | $15.95 |
| Maximum offering price per share (100/94.25 of $15.95) | | $16.92 |
| Class T: | | |
| Net Asset Value and redemption price per share ($6,948,659 ÷ 434,481 shares) | | $15.99 |
| Maximum offering price per share (100/96.50 of $15.99) | | $16.57 |
| Class B: | | |
| Net Asset Value and offering price per share ($160,978 ÷ 10,148 shares)(a) | | $15.86 |
| Class C: | | |
| Net Asset Value and offering price per share ($5,371,060 ÷ 345,417 shares)(a) | | $15.55 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($2,836,937 ÷ 176,561 shares) | | $16.07 |
(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.
Statement of Operations
| | | Six months ended April 30, 2016 (Unaudited) |
| Investment Income | | |
| Dividends | | $346,290 |
| Income from Fidelity Central Funds | | 3,624 |
| Total income | | 349,914 |
| Expenses | | |
| Management fee | | |
| Basic fee | $89,837 | |
| Performance adjustment | 14,612 | |
| Transfer agent fees | 41,283 | |
| Distribution and service plan fees | 67,288 | |
| Accounting and security lending fees | 6,431 | |
| Custodian fees and expenses | 3,914 | |
| Independent trustees' compensation | 72 | |
| Registration fees | 29,902 | |
| Audit | 29,948 | |
| Legal | 910 | |
| Miscellaneous | 110 | |
| Total expenses before reductions | 284,307 | |
| Expense reductions | (54,306) | 230,001 |
| Net investment income (loss) | | 119,913 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (303,544) | |
| Foreign currency transactions | 449 | |
| Total net realized gain (loss) | | (303,095) |
Change in net unrealized appreciation (depreciation) on:
Investment securities | (101,688) | |
| Assets and liabilities in foreign currencies | 531 | |
| Total change in net unrealized appreciation (depreciation) | | (101,157) |
| Net gain (loss) | | (404,252) |
| Net increase (decrease) in net assets resulting from operations | | $(284,339) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended April 30, 2016 (Unaudited) | Year ended October 31, 2015 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $119,913 | $535,049 |
| Net realized gain (loss) | (303,095) | 1,890,187 |
| Change in net unrealized appreciation (depreciation) | (101,157) | (1,350,224) |
| Net increase (decrease) in net assets resulting from operations | (284,339) | 1,075,012 |
| Distributions to shareholders from net investment income | (492,638) | (169,686) |
| Distributions to shareholders from net realized gain | (36,002) | (24,958) |
| Total distributions | (528,640) | (194,644) |
| Share transactions - net increase (decrease) | (819,733) | 4,980,098 |
| Total increase (decrease) in net assets | (1,632,712) | 5,860,466 |
| Net Assets | | |
| Beginning of period | 34,871,216 | 29,010,750 |
| End of period (including undistributed net investment income of $25,645 and undistributed net investment income of $398,370, respectively) | $33,238,504 | $34,871,216 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Leaders Fund Class A
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $16.34 | $15.79 | $13.73 | $10.82 | $9.96 | $10.12 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .07 | .29 | .12 | .10 | .13 | .10 |
| Net realized and unrealized gain (loss) | (.18) | .39B | 1.94 | 3.01 | .85 | (.14) |
| Total from investment operations | (.11) | .68 | 2.06 | 3.11 | .98 | (.04) |
| Distributions from net investment income | (.27) | (.12) | – | (.20) | (.12) | (.11) |
| Distributions from net realized gain | (.02) | (.01) | – | – | –C | (.01) |
| Total distributions | (.28)D | (.13) | – | (.20) | (.12) | (.12) |
| Net asset value, end of period | $15.95 | $16.34 | $15.79 | $13.73 | $10.82 | $9.96 |
| Total ReturnE,F,G | (.68)% | 4.32%B | 15.00% | 29.24% | 10.00% | (.40)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.56%J | 1.49% | 1.30% | 1.33% | 1.28% | 1.24% |
| Expenses net of fee waivers, if any | 1.25%J | 1.25% | 1.25% | 1.25% | 1.25% | 1.24% |
| Expenses net of all reductions | 1.24%J | 1.25% | 1.25% | 1.23% | 1.24% | 1.23% |
| Net investment income (loss) | .90%J | 1.78% | .78% | .82% | 1.26% | .91% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $17,921 | $18,237 | $15,067 | $15,339 | $14,705 | $15,484 |
| Portfolio turnover rateK | 80%J | 54% | 182% | 87% | 94% | 161% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 4.01%.
C Amount represents less than $.005 per share.
D Total distributions of $.28 per share is comprised of distributions from net investment income of $.265 and distributions from net realized gain of $.017 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Leaders Fund Class T
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $16.33 | $15.78 | $13.75 | $10.82 | $9.96 | $10.08 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .05 | .25 | .08 | .07 | .10 | .07 |
| Net realized and unrealized gain (loss) | (.18) | .39B | 1.95 | 3.02 | .85 | (.13) |
| Total from investment operations | (.13) | .64 | 2.03 | 3.09 | .95 | (.06) |
| Distributions from net investment income | (.20) | (.08) | – | (.16) | (.09) | (.05) |
| Distributions from net realized gain | (.02) | (.01) | – | – | –C | (.01) |
| Total distributions | (.21)D | (.09) | – | (.16) | (.09) | (.06) |
| Net asset value, end of period | $15.99 | $16.33 | $15.78 | $13.75 | $10.82 | $9.96 |
| Total ReturnE,F,G | (.80)% | 4.04%B | 14.76% | 28.97% | 9.68% | (.64)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.86%J | 1.78% | 1.58% | 1.60% | 1.55% | 1.49% |
| Expenses net of fee waivers, if any | 1.50%J | 1.50% | 1.50% | 1.50% | 1.50% | 1.49% |
| Expenses net of all reductions | 1.50%J | 1.50% | 1.50% | 1.48% | 1.49% | 1.48% |
| Net investment income (loss) | .64%J | 1.53% | .53% | .57% | 1.01% | .67% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $6,949 | $7,672 | $7,819 | $6,569 | $6,145 | $8,254 |
| Portfolio turnover rateK | 80%J | 54% | 182% | 87% | 94% | 161% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 3.73%.
C Amount represents less than $.005 per share.
D Total distributions of $.21 per share is comprised of distributions from net investment income of $.195 and distributions from net realized gain of $.017 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Leaders Fund Class B
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $16.07 | $15.53 | $13.60 | $10.70 | $9.84 | $9.99 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .01 | .17 | –B | .01 | .05 | .02 |
| Net realized and unrealized gain (loss) | (.18) | .38C | 1.93 | 2.99 | .85 | (.13) |
| Total from investment operations | (.17) | .55 | 1.93 | 3.00 | .90 | (.11) |
| Distributions from net investment income | (.02) | – | – | (.10) | (.03) | (.03) |
| Distributions from net realized gain | (.02) | (.01) | – | – | –B | (.01) |
| Total distributions | (.04) | (.01) | – | (.10) | (.04)D | (.04) |
| Net asset value, end of period | $15.86 | $16.07 | $15.53 | $13.60 | $10.70 | $9.84 |
| Total ReturnE,F,G | (1.06)% | 3.56%C | 14.19% | 28.31% | 9.14% | (1.14)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 2.37%J | 2.33% | 2.12% | 2.10% | 2.04% | 1.99% |
| Expenses net of fee waivers, if any | 2.00%J | 2.00% | 2.00% | 2.00% | 2.00% | 1.99% |
| Expenses net of all reductions | 2.00%J | 2.00% | 2.00% | 1.98% | 1.99% | 1.98% |
| Net investment income (loss) | .14%J | 1.03% | .03% | .07% | .51% | .16% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $161 | $247 | $406 | $719 | $895 | $1,110 |
| Portfolio turnover rateK | 80%J | 54% | 182% | 87% | 94% | 161% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 3.25%.
D Total distributions of $.04 per share is comprised of distributions from net investment income of $.031 and distributions from net realized gain of $.004 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Leaders Fund Class C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $15.88 | $15.35 | $13.44 | $10.59 | $9.75 | $9.92 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .01 | .17 | –B | .01 | .05 | .02 |
| Net realized and unrealized gain (loss) | (.18) | .37C | 1.91 | 2.95 | .84 | (.13) |
| Total from investment operations | (.17) | .54 | 1.91 | 2.96 | .89 | (.11) |
| Distributions from net investment income | (.15) | – | – | (.11) | (.05) | (.05) |
| Distributions from net realized gain | (.02) | (.01) | – | – | –B | (.01) |
| Total distributions | (.16)D | (.01) | – | (.11) | (.05) | (.06) |
| Net asset value, end of period | $15.55 | $15.88 | $15.35 | $13.44 | $10.59 | $9.75 |
| Total ReturnE,F,G | (1.06)% | 3.54%C | 14.21% | 28.27% | 9.21% | (1.18)% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 2.37%J | 2.29% | 2.09% | 2.08% | 2.04% | 2.00% |
| Expenses net of fee waivers, if any | 2.00%J | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% |
| Expenses net of all reductions | 2.00%J | 2.00% | 2.00% | 1.97% | 1.99% | 1.98% |
| Net investment income (loss) | .14%J | 1.03% | .03% | .07% | .51% | .16% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $5,371 | $5,662 | $4,458 | $4,340 | $3,299 | $3,775 |
| Portfolio turnover rateK | 80%J | 54% | 182% | 87% | 94% | 161% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 3.23%.
D Total distributions of $.16 per share is comprised of distributions from net investment income of $.147 and distributions from net realized gain of $.017 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H 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.
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 Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Value Leaders Fund Class I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $16.48 | $15.93 | $13.81 | $10.89 | $10.04 | $10.19 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .09 | .34 | .15 | .14 | .18 | .14 |
| Net realized and unrealized gain (loss) | (.17) | .39B | 1.97 | 3.02 | .83 | (.15) |
| Total from investment operations | (.08) | .73 | 2.12 | 3.16 | 1.01 | (.01) |
| Distributions from net investment income | (.31) | (.17) | – | (.24) | (.16) | (.13) |
| Distributions from net realized gain | (.02) | (.01) | – | – | –C | (.01) |
| Total distributions | (.33) | (.18) | – | (.24) | (.16) | (.14) |
| Net asset value, end of period | $16.07 | $16.48 | $15.93 | $13.81 | $10.89 | $10.04 |
| Total ReturnD,E | (.53)% | 4.58%B | 15.35% | 29.65% | 10.30% | (.11)% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 1.27%H | 1.18% | 1.01% | .94% | .83% | .89% |
| Expenses net of fee waivers, if any | 1.00%H | 1.00% | 1.00% | .94% | .83% | .89% |
| Expenses net of all reductions | .99%H | 1.00% | 1.00% | .92% | .82% | .88% |
| Net investment income (loss) | 1.15%H | 2.03% | 1.03% | 1.13% | 1.68% | 1.27% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $2,837 | $3,052 | $1,261 | $1,767 | $1,195 | $523 |
| Portfolio turnover rateI | 80%H | 54% | 182% | 87% | 94% | 161% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 4.27%.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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 Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2016
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 Class I shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a maximum holding period of seven years from the initial date of purchase.
During the period, the Board of Trustees approved the conversion of all existing Class B shares into Class A shares, effective on or about July 1, 2016, regardless of the length of times shares have been held.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of April 30, 2016 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, 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 | $2,399,163 |
| Gross unrealized depreciation | (2,574,009) |
| Net unrealized appreciation (depreciation) on securities | $(174,846) |
| Tax cost | $34,234,931 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2016 | $(9,484,911) |
| 2017 | (14,819,668) |
| 2019 | (169,201) |
| Total capital loss carryforward | $(24,473,780) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $13,091,357 and $14,447,732, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Class I of the Fund as compared to its benchmark index, the Russell 1000 Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .64% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
| Class A | -% | .25% | $21,649 | $1,221 |
| Class T | .25% | .25% | 17,350 | - |
| Class B | .75% | .25% | 999 | 751 |
| Class C | .75% | .25% | 27,290 | 3,710 |
| | | | $67,288 | $5,682 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $3,544 |
| Class T | 550 |
| Class B(a) | 28 |
| Class C(a) | 84 |
| | $4,206 |
(a) When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| | Amount | % of
Class-Level Average
Net Assets(a) |
| Class A | $20,311 | .23 |
| Class T | 9,792 | .28 |
| Class B | 299 | .30 |
| Class C | 8,090 | .30 |
| Class I | 2,791 | .20 |
| | $ 41,283 | |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $389 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $29 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $2,599. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
The investment adviser voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| | Expense
Limitations | Reimbursement |
| Class A | 1.25% | $26,775 |
| Class T | 1.50% | 12,241 |
| Class B | 2.00% | 368 |
| Class C | 2.00% | 10,005 |
| Class I | 1.00% | 3,845 |
| | | $53,234 |
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $943 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $8.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $121.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| From net investment income | | |
| Class A | $296,202 | $114,891 |
| Class T | 86,018 | 37,662 |
| Class B | 332 | – |
| Class C | 52,765 | – |
| Class I | 57,321 | 17,133 |
| Total | $492,638 | $169,686 |
| From net realized gain | | |
| Class A | $19,002 | $12,739 |
| Class T | 7,499 | 6,567 |
| Class B | 245 | 311 |
| Class C | 6,102 | 3,946 |
| Class I | 3,154 | 1,395 |
| Total | $36,002 | $24,958 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Six months ended
April 30, 2016 | Year ended October 31, 2015 | Six months ended
April 30, 2016 | Year ended October 31, 2015 |
| Class A | | | | |
| Shares sold | 115,877 | 347,210 | $1,799,514 | $5,762,966 |
| Reinvestment of distributions | 19,140 | 7,654 | 309,115 | 124,714 |
| Shares redeemed | (127,836) | (192,743) | (1,985,603) | (3,168,130) |
| Net increase (decrease) | 7,181 | 162,121 | $123,026 | $2,719,550 |
| Class T | | | | |
| Shares sold | 12,903 | 61,595 | $201,979 | $1,008,225 |
| Reinvestment of distributions | 5,586 | 2,644 | 90,492 | 43,169 |
| Shares redeemed | (53,819) | (89,859) | (855,461) | (1,479,942) |
| Net increase (decrease) | (35,330) | (25,620) | $(562,990) | $(428,548) |
| Class B | | | | |
| Shares sold | 123 | 507 | $1,901 | $8,265 |
| Reinvestment of distributions | 32 | 18 | 520 | 292 |
| Shares redeemed | (5,387) | (11,295) | (84,508) | (181,334) |
| Net increase (decrease) | (5,232) | (10,770) | $(82,087) | $(172,777) |
| Class C | | | | |
| Shares sold | 33,538 | 112,671 | $510,123 | $1,824,580 |
| Reinvestment of distributions | 3,672 | 239 | 57,973 | 3,850 |
| Shares redeemed | (48,473) | (46,657) | (735,458) | (741,831) |
| Net increase (decrease) | (11,263) | 66,253 | $(167,362) | $1,086,599 |
| Class I | | | | |
| Shares sold | 36,595 | 213,391 | $576,366 | $3,568,936 |
| Reinvestment of distributions | 3,673 | 1,111 | 59,684 | 18,206 |
| Shares redeemed | (48,918) | (108,443) | (766,370) | (1,811,868) |
| Net increase (decrease) | (8,650) | 106,059 | $(130,320) | $1,775,274 |
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.
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, 2015 to April 30, 2016).
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.
| | Annualized Expense Ratio-A | Beginning
Account Value
November 1, 2015 | Ending
Account Value
April 30, 2016 | Expenses Paid
During Period-B
November 1, 2015
to April 30, 2016 |
| Class A | 1.25% | | | |
| Actual | | $1,000.00 | $993.20 | $6.19 |
| Hypothetical-C | | $1,000.00 | $1,018.65 | $6.27 |
| Class T | 1.50% | | | |
| Actual | | $1,000.00 | $992.00 | $7.43 |
| Hypothetical-C | | $1,000.00 | $1,017.40 | $7.52 |
| Class B | 2.00% | | | |
| Actual | | $1,000.00 | $989.40 | $9.89 |
| Hypothetical-C | | $1,000.00 | $1,014.92 | $10.02 |
| Class C | 2.00% | | | |
| Actual | | $1,000.00 | $989.40 | $9.89 |
| Hypothetical-C | | $1,000.00 | $1,014.92 | $10.02 |
| Class I | 1.00% | | | |
| Actual | | $1,000.00 | $994.70 | $4.96 |
| Hypothetical-C | | $1,000.00 | $1,019.89 | $5.02 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
C 5% return per year before expenses
AVLFI-SANN-0616
1.800659.113
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/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
|
|
Date: | June 23, 2016 |
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/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
|
|
Date: | June 23, 2016 |
| |
By: | /s/Howard J. Galligan III |
| Howard J. Galligan III |
| Chief Financial Officer |
|
|
Date: | June 23, 2016 |
