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, 2017 |
Item 1.
Reports to Stockholders
Fidelity Advisor® Diversified International Fund
Class A, Class M (formerly Class T), Class C, Class I and Class Z
Semi-Annual Report April 30, 2017 |
 |
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. © 2017 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.institutional.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, 2017
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Bayer AG (Germany, Pharmaceuticals) | 2.2 | 1.9 |
| Hoya Corp. (Japan, Health Care Equipment & Supplies) | 1.5 | 1.6 |
| ORIX Corp. (Japan, Diversified Financial Services) | 1.5 | 1.9 |
| Prudential PLC (United Kingdom, Insurance) | 1.5 | 1.0 |
| Lloyds Banking Group PLC (United Kingdom, Banks) | 1.5 | 1.2 |
| | 8.2 | |
Top Five Market Sectors as of April 30, 2017
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Financials | 22.3 | 21.3 |
| Consumer Staples | 13.7 | 14.8 |
| Health Care | 13.1 | 15.6 |
| Information Technology | 12.7 | 15.3 |
| Consumer Discretionary | 12.6 | 12.5 |
Top Five Countries as of April 30, 2017
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| United Kingdom | 16.9 | 13.3 |
| Japan | 14.9 | 16.4 |
| Germany | 8.2 | 8.7 |
| United States of America | 6.1 | 7.5 |
| Netherlands | 6.0 | 5.0 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2017 |
| | Stocks | 96.7% |
| | Bonds | 0.1% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 3.2% |
| As of October 31, 2016 |
| | Stocks | 98.6% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 1.4% |
Investments April 30, 2017 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 95.3% | | | |
| | | Shares | Value (000s) |
| Australia - 1.5% | | | |
| Amcor Ltd. | | 169,822 | $1,998 |
| Australia & New Zealand Banking Group Ltd. | | 501,991 | 12,314 |
| Bapcor Ltd. | | 632,977 | 2,479 |
| CSL Ltd. | | 48,904 | 4,854 |
| Magellan Financial Group Ltd. | | 307,552 | 5,430 |
| Ramsay Health Care Ltd. | | 75,087 | 4,031 |
|
| TOTAL AUSTRALIA | | | 31,106 |
|
| Bailiwick of Guernsey - 0.0% | | | |
| Burford Capital Ltd. | | 63,100 | 637 |
| Bailiwick of Jersey - 2.5% | | | |
| Shire PLC | | 286,000 | 16,862 |
| Shire PLC sponsored ADR | | 18,154 | 3,213 |
| Wolseley PLC | | 307,400 | 19,537 |
| WPP PLC | | 529,124 | 11,330 |
|
| TOTAL BAILIWICK OF JERSEY | | | 50,942 |
|
| Belgium - 2.0% | | | |
| Anheuser-Busch InBev SA NV | | 206,531 | 23,291 |
| KBC Groep NV | | 242,793 | 17,529 |
|
| TOTAL BELGIUM | | | 40,820 |
|
| Bermuda - 0.6% | | | |
| Credicorp Ltd. (United States) | | 29,505 | 4,534 |
| IHS Markit Ltd. (a) | | 163,488 | 7,095 |
|
| TOTAL BERMUDA | | | 11,629 |
|
| Canada - 4.2% | | | |
| Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | | 358,300 | 16,479 |
| AutoCanada, Inc. (b) | | 172,800 | 2,972 |
| Canadian Energy Services & Technology Corp. | | 1,416,600 | 6,694 |
| Cenovus Energy, Inc. | | 899,500 | 8,968 |
| CGI Group, Inc. Class A (sub. vtg.) (a) | | 112,700 | 5,439 |
| Constellation Software, Inc. | | 18,000 | 8,233 |
| Fairfax India Holdings Corp. (a) | | 494,000 | 6,862 |
| Imperial Oil Ltd. | | 253,200 | 7,366 |
| PrairieSky Royalty Ltd. | | 80,569 | 1,756 |
| Suncor Energy, Inc. | | 629,900 | 19,741 |
|
| TOTAL CANADA | | | 84,510 |
|
| Cayman Islands - 1.1% | | | |
| Alibaba Group Holding Ltd. sponsored ADR (a) | | 120,400 | 13,906 |
| JD.com, Inc. sponsored ADR (a) | | 154,000 | 5,401 |
| Melco Crown Entertainment Ltd. sponsored ADR | | 95,400 | 2,094 |
| Yihai International Holding Ltd. | | 2,051,000 | 960 |
|
| TOTAL CAYMAN ISLANDS | | | 22,361 |
|
| China - 0.8% | | | |
| Kweichow Moutai Co. Ltd. (A Shares) | | 159,910 | 9,592 |
| Qingdao Haier Co. Ltd. | | 3,522,122 | 6,228 |
|
| TOTAL CHINA | | | 15,820 |
|
| Curacao - 0.7% | | | |
| Schlumberger Ltd. | | 185,400 | 13,458 |
| Denmark - 0.5% | | | |
| A.P. Moller - Maersk A/S Series B | | 1,084 | 1,870 |
| NNIT A/S (a) | | 69,151 | 1,949 |
| Novo Nordisk A/S Series B | | 169,640 | 6,605 |
|
| TOTAL DENMARK | | | 10,424 |
|
| Finland - 0.3% | | | |
| Sampo Oyj (A Shares) (b) | | 127,200 | 6,095 |
| France - 5.0% | | | |
| Amundi SA | | 293,858 | 19,334 |
| AXA SA (b) | | 427,600 | 11,408 |
| BNP Paribas SA | | 151,200 | 10,669 |
| LVMH Moet Hennessy - Louis Vuitton SA (b) | | 45,031 | 11,117 |
| Maisons du Monde SA | | 90,273 | 3,133 |
| Rubis | | 21,300 | 2,164 |
| Sanofi SA | | 237,956 | 22,485 |
| Societe Generale Series A | | 197,400 | 10,824 |
| VINCI SA | | 122,800 | 10,467 |
|
| TOTAL FRANCE | | | 101,601 |
|
| Germany - 6.9% | | | |
| adidas AG | | 62,545 | 12,529 |
| Aumann AG | | 35,188 | 2,314 |
| Axel Springer Verlag AG | | 88,800 | 4,983 |
| Bayer AG | | 362,052 | 44,796 |
| Brenntag AG | | 9,700 | 575 |
| Deutsche Borse AG | | 6,908 | 676 |
| Deutsche Post AG | | 215,130 | 7,733 |
| Fresenius Medical Care AG & Co. KGaA | | 22,100 | 1,962 |
| Fresenius SE & Co. KGaA | | 253,400 | 20,539 |
| Nexus AG | | 95,900 | 2,309 |
| ProSiebenSat.1 Media AG | | 196,500 | 8,341 |
| Rational AG | | 3,600 | 1,809 |
| SAP AG | | 234,200 | 23,459 |
| Symrise AG | | 106,900 | 7,484 |
|
| TOTAL GERMANY | | | 139,509 |
|
| Hong Kong - 1.1% | | | |
| AIA Group Ltd. | | 2,726,400 | 18,875 |
| Techtronic Industries Co. Ltd. | | 867,000 | 3,723 |
|
| TOTAL HONG KONG | | | 22,598 |
|
| India - 3.6% | | | |
| Adani Ports & Special Economic Zone Ltd. (a) | | 70,483 | 359 |
| Axis Bank Ltd. | | 382,949 | 3,036 |
| Edelweiss Financial Services Ltd. | | 654,571 | 1,707 |
| Exide Industries Ltd. (a) | | 1,136,771 | 4,064 |
| Godrej Consumer Products Ltd. | | 15,873 | 430 |
| HDFC Bank Ltd. | | 880,888 | 21,504 |
| Housing Development Finance Corp. Ltd. | | 694,118 | 16,596 |
| ICICI Bank Ltd. | | 914,289 | 3,945 |
| ITC Ltd. | | 2,127,259 | 9,199 |
| LIC Housing Finance Ltd. | | 316,125 | 3,289 |
| Reliance Industries Ltd. | | 405,039 | 8,790 |
|
| TOTAL INDIA | | | 72,919 |
|
| Indonesia - 0.8% | | | |
| PT Bank Central Asia Tbk | | 4,819,700 | 6,418 |
| PT Bank Rakyat Indonesia Tbk | | 9,015,500 | 8,725 |
|
| TOTAL INDONESIA | | | 15,143 |
|
| Ireland - 3.5% | | | |
| Allergan PLC | | 44,000 | 10,730 |
| CRH PLC | | 188,000 | 6,855 |
| DCC PLC (United Kingdom) | | 71,500 | 6,603 |
| Kerry Group PLC Class A | | 86,700 | 7,085 |
| Kingspan Group PLC (Ireland) | | 121,000 | 4,209 |
| Medtronic PLC | | 100,700 | 8,367 |
| Ryanair Holdings PLC sponsored ADR (a) | | 241,760 | 22,225 |
| Weatherford International PLC (a) | | 716,800 | 4,136 |
|
| TOTAL IRELAND | | | 70,210 |
|
| Isle of Man - 0.4% | | | |
| Paysafe Group PLC (a) | | 1,172,033 | 6,890 |
| Israel - 1.8% | | | |
| Check Point Software Technologies Ltd. (a) | | 136,800 | 14,229 |
| Elbit Systems Ltd. (Israel) | | 28,497 | 3,395 |
| Frutarom Industries Ltd. | | 136,300 | 8,012 |
| SodaStream International Ltd. (a) | | 43,200 | 2,350 |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | | 251,000 | 7,927 |
|
| TOTAL ISRAEL | | | 35,913 |
|
| Italy - 0.7% | | | |
| Buzzi Unicem SpA | | 30,600 | 787 |
| Intesa Sanpaolo SpA | | 2,656,300 | 7,754 |
| Prada SpA | | 942,700 | 4,424 |
|
| TOTAL ITALY | | | 12,965 |
|
| Japan - 14.8% | | | |
| Ain Holdings, Inc. | | 81,500 | 5,644 |
| Astellas Pharma, Inc. | | 1,110,300 | 14,642 |
| Bridgestone Corp. | | 76,600 | 3,194 |
| Daito Trust Construction Co. Ltd. | | 35,100 | 5,164 |
| Dentsu, Inc. | | 128,700 | 7,250 |
| Don Quijote Holdings Co. Ltd. | | 136,300 | 4,970 |
| Hoya Corp. | | 652,200 | 31,149 |
| Japan Exchange Group, Inc. | | 43,400 | 608 |
| Japan Tobacco, Inc. | | 307,700 | 10,230 |
| Kaken Pharmaceutical Co. Ltd. | | 28,200 | 1,672 |
| Kao Corp. | | 19,000 | 1,048 |
| KDDI Corp. | | 625,200 | 16,577 |
| Keyence Corp. | | 59,000 | 23,711 |
| Minebea Mitsumi, Inc. | | 396,800 | 5,734 |
| Misumi Group, Inc. | | 223,600 | 4,234 |
| Morinaga & Co. Ltd. | | 99,900 | 4,723 |
| Nabtesco Corp. | | 97,400 | 2,761 |
| Nidec Corp. | | 21,200 | 1,944 |
| Nippon Telegraph & Telephone Corp. | | 104,600 | 4,483 |
| Nitori Holdings Co. Ltd. | | 110,800 | 14,422 |
| Olympus Corp. | | 289,200 | 11,130 |
| ORIX Corp. | | 2,018,400 | 30,799 |
| Outsourcing, Inc. | | 37,400 | 1,434 |
| Recruit Holdings Co. Ltd. | | 386,900 | 19,540 |
| Seria Co. Ltd. | | 26,100 | 1,171 |
| Seven & i Holdings Co. Ltd. | | 186,800 | 7,893 |
| Shin-Etsu Chemical Co. Ltd. | | 10,700 | 930 |
| Shinsei Bank Ltd. | | 2,202,000 | 4,109 |
| Shionogi & Co. Ltd. | | 72,900 | 3,749 |
| SMC Corp. | | 13,400 | 3,773 |
| SoftBank Corp. | | 160,300 | 12,159 |
| Sohgo Security Services Co., Ltd. | | 37,000 | 1,615 |
| Sony Corp. | | 240,900 | 8,266 |
| Start Today Co. Ltd. | | 164,200 | 3,506 |
| Sundrug Co. Ltd. | | 55,500 | 1,947 |
| Tsuruha Holdings, Inc. | | 153,600 | 15,570 |
| Welcia Holdings Co. Ltd. | | 236,400 | 7,613 |
|
| TOTAL JAPAN | | | 299,364 |
|
| Luxembourg - 1.4% | | | |
| B&M European Value Retail S.A. | | 3,767,184 | 16,443 |
| Eurofins Scientific SA | | 24,700 | 12,164 |
|
| TOTAL LUXEMBOURG | | | 28,607 |
|
| Netherlands - 6.0% | | | |
| AerCap Holdings NV (a) | | 105,000 | 4,831 |
| Altice NV: | | | |
| Class A (a) | | 725,916 | 18,033 |
| Class B (a) | | 192,233 | 4,781 |
| ASML Holding NV | | 59,600 | 7,858 |
| Gree Electric Appliances, Inc. of Zhuhai ELS (A Shares) (BNP Paribas Warrant Program) warrants 11/14/17 (a)(c) | | 438,901 | 2,101 |
| IMCD Group BV | | 135,500 | 7,299 |
| ING Groep NV (Certificaten Van Aandelen) | | 788,000 | 12,844 |
| Koninklijke Philips Electronics NV | | 257,000 | 8,875 |
| LyondellBasell Industries NV Class A | | 71,700 | 6,077 |
| NXP Semiconductors NV (a) | | 83,900 | 8,872 |
| RELX NV | | 697,138 | 13,483 |
| Unilever NV: | | | |
| (Certificaten Van Aandelen) (Bearer) (a)(b) | | 380,300 | 19,922 |
| (NY Reg.) (a) | | 47,700 | 2,492 |
| Wolters Kluwer NV | | 85,800 | 3,644 |
|
| TOTAL NETHERLANDS | | | 121,112 |
|
| New Zealand - 0.1% | | | |
| Ryman Healthcare Group Ltd. | | 453,134 | 2,685 |
| Norway - 0.7% | | | |
| Statoil ASA (b) | | 886,700 | 14,603 |
| Philippines - 0.1% | | | |
| Alliance Global Group, Inc. | | 7,233,854 | 2,135 |
| Singapore - 0.4% | | | |
| Broadcom Ltd. | | 36,100 | 7,971 |
| South Africa - 1.2% | | | |
| Capitec Bank Holdings Ltd. | | 31,900 | 1,820 |
| EOH Holdings Ltd. | | 260,600 | 2,758 |
| Naspers Ltd. Class N | | 107,400 | 20,422 |
|
| TOTAL SOUTH AFRICA | | | 25,000 |
|
| Spain - 2.9% | | | |
| Amadeus IT Holding SA Class A | | 309,400 | 16,683 |
| CaixaBank SA | | 2,567,200 | 11,656 |
| Grifols SA ADR | | 27,700 | 601 |
| Hispania Activos Inmobiliarios SA | | 115,850 | 1,749 |
| Inditex SA | | 441,944 | 16,950 |
| Neinor Homes SLU | | 239,700 | 4,727 |
| Prosegur Cash SA | | 2,253,100 | 5,743 |
|
| TOTAL SPAIN | | | 58,109 |
|
| Sweden - 2.8% | | | |
| ASSA ABLOY AB (B Shares) | | 568,200 | 12,310 |
| Coor Service Management Holding AB | | 445,200 | 2,777 |
| HEXPOL AB (B Shares) | | 222,600 | 2,474 |
| Nordea Bank AB | | 1,408,200 | 17,330 |
| Svenska Cellulosa AB (SCA) (B Shares) | | 492,100 | 16,301 |
| Svenska Handelsbanken AB (A Shares) | | 363,000 | 5,152 |
|
| TOTAL SWEDEN | | | 56,344 |
|
| Switzerland - 2.7% | | | |
| Credit Suisse Group AG | | 823,119 | 12,553 |
| Dufry AG (a) | | 1,430 | 234 |
| Forbo Holding AG (Reg.) | | 260 | 426 |
| Julius Baer Group Ltd. | | 88,190 | 4,599 |
| Partners Group Holding AG | | 13,910 | 8,409 |
| Sika AG | | 2,363 | 15,080 |
| UBS Group AG | | 794,503 | 13,574 |
|
| TOTAL SWITZERLAND | | | 54,875 |
|
| Taiwan - 1.0% | | | |
| Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | | 605,200 | 20,014 |
| Thailand - 0.2% | | | |
| Kasikornbank PCL (For. Reg.) | | 746,100 | 3,989 |
| United Kingdom - 16.9% | | | |
| Ascential PLC | | 614,831 | 2,809 |
| Booker Group PLC | | 3,185,300 | 8,004 |
| British American Tobacco PLC sponsored ADR (b) | | 387,300 | 26,352 |
| Bunzl PLC | | 221,800 | 6,918 |
| Close Brothers Group PLC | | 38,700 | 848 |
| Coca-Cola European Partners PLC | | 156,200 | 6,032 |
| Compass Group PLC | | 577,400 | 11,658 |
| Dialog Semiconductor PLC (a) | | 126,900 | 5,937 |
| Dignity PLC | | 117,200 | 3,784 |
| Diploma PLC | | 462,900 | 6,649 |
| Domino's Pizza UK & IRL PLC | | 329,200 | 1,409 |
| Essentra PLC | | 1,372,700 | 9,627 |
| GlaxoSmithKline PLC | | 208,400 | 4,195 |
| Halma PLC | | 203,800 | 2,780 |
| Hastings Group Holdings PLC | | 220,903 | 865 |
| HomeServe PLC | | 291,200 | 2,523 |
| Howden Joinery Group PLC | | 194,100 | 1,164 |
| Ibstock PLC | | 734,200 | 2,178 |
| IMI PLC | | 148,900 | 2,467 |
| Imperial Tobacco Group PLC | | 214,160 | 10,491 |
| Indivior PLC | | 776,400 | 3,369 |
| Informa PLC | | 430,742 | 3,582 |
| ITV PLC | | 2,258,150 | 6,142 |
| John Wood Group PLC | | 249,900 | 2,458 |
| Liberty Global PLC Class A (a) | | 123,400 | 4,371 |
| LivaNova PLC (a) | | 21,000 | 1,107 |
| Lloyds Banking Group PLC | | 33,099,500 | 29,741 |
| London Stock Exchange Group PLC | | 246,600 | 10,805 |
| Melrose Industries PLC | | 4,604,963 | 14,106 |
| Micro Focus International PLC | | 538,200 | 18,040 |
| Next PLC | | 159,900 | 8,916 |
| Polypipe Group PLC | | 352,000 | 1,816 |
| Prudential PLC | | 1,353,033 | 30,029 |
| Reckitt Benckiser Group PLC | | 232,813 | 21,451 |
| Rio Tinto PLC | | 305,900 | 12,068 |
| Softcat PLC | | 505,734 | 2,699 |
| Spectris PLC | | 189,800 | 6,785 |
| St. James's Place Capital PLC | | 1,085,900 | 16,146 |
| Standard Chartered PLC (United Kingdom) (a) | | 494,496 | 4,619 |
| Standard Life PLC | | 904,818 | 4,265 |
| TechnipFMC PLC (France) (a) | | 58,020 | 1,744 |
| Tesco PLC (a) | | 2,645,900 | 6,279 |
| Vodafone Group PLC sponsored ADR | | 323,600 | 8,475 |
| Volution Group PLC | | 1,765,800 | 4,483 |
|
| TOTAL UNITED KINGDOM | | | 340,186 |
|
| United States of America - 6.1% | | | |
| Activision Blizzard, Inc. | | 71,200 | 3,720 |
| Alexion Pharmaceuticals, Inc. (a) | | 34,900 | 4,460 |
| Alphabet, Inc. Class C (a) | | 17,549 | 15,899 |
| Amgen, Inc. | | 70,400 | 11,498 |
| Bio-Rad Laboratories, Inc. Class A (a) | | 9,900 | 2,161 |
| Coty, Inc. Class A | | 822,700 | 14,685 |
| Fidelity National Information Services, Inc. | | 57,900 | 4,875 |
| MasterCard, Inc. Class A | | 119,500 | 13,900 |
| Molson Coors Brewing Co. Class B | | 53,300 | 5,111 |
| MSCI, Inc. | | 30,200 | 3,030 |
| NJOY, Inc. (a)(d) | | 725,848 | 0 |
| Oceaneering International, Inc. | | 126,400 | 3,336 |
| Qualcomm, Inc. | | 145,700 | 7,830 |
| Quintiles Transnational Holdings, Inc. (a) | | 31,700 | 2,672 |
| S&P Global, Inc. | | 99,400 | 13,338 |
| Vertex Pharmaceuticals, Inc. (a) | | 30,000 | 3,549 |
| Visa, Inc. Class A | | 149,100 | 13,601 |
|
| TOTAL UNITED STATES OF AMERICA | | | 123,665 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $1,562,009) | | | 1,924,209 |
|
| Nonconvertible Preferred Stocks - 1.4% | | | |
| Brazil - 0.1% | | | |
| Itau Unibanco Holding SA | | 162,490 | 2,010 |
| Germany - 1.3% | | | |
| Henkel AG & Co. KGaA | | 147,100 | 20,030 |
| Jungheinrich AG | | 42,500 | 1,480 |
| Sartorius AG (non-vtg.) | | 51,200 | 4,688 |
|
| TOTAL GERMANY | | | 26,198 |
|
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | | | |
| (Cost $20,697) | | | 28,208 |
| | | Principal Amount (000s)(e) | Value (000s) |
|
| Government Obligations - 0.1% | | | |
| Japan - 0.1% | | | |
Japan Government 0.1% 4/15/19
(Cost $1,951) | JPY | 212,800 | 1,920 |
| | | Shares | Value (000s) |
|
| Money Market Funds - 7.2% | | | |
| Fidelity Cash Central Fund, 0.85% (f) | | 55,384,013 | 55,395 |
| Fidelity Securities Lending Cash Central Fund 0.86% (f)(g) | | 90,670,470 | 90,680 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $146,079) | | | 146,075 |
| TOTAL INVESTMENT PORTFOLIO - 104.0% | | | |
| (Cost $1,730,736) | | | 2,100,412 |
| NET OTHER ASSETS (LIABILITIES) - (4.0)% | | | (81,658) |
| NET ASSETS - 100% | | | $2,018,754 |
Currency Abbreviations
JPY – Japanese yen
Security Type Abbreviations
ELS – Equity-Linked Security
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Values shown as $0 may reflect amounts less than $500.
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 $2,101,000 or 0.1% of net assets.
(d) 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 $0 or 0.0% of net assets.
(e) Amount is stated in United States dollars unless otherwise noted.
(f) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(g) Investment made with cash collateral received from securities on loan.
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 | $163 |
| Fidelity Securities Lending Cash Central Fund | 384 |
| Total | $547 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2017, 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 | $252,634 | $181,500 | $71,134 | $-- |
| Consumer Staples | 277,894 | 206,951 | 70,943 | -- |
| Energy | 93,050 | 78,447 | 14,603 | -- |
| Financials | 450,103 | 291,145 | 158,958 | -- |
| Health Care | 272,120 | 160,573 | 111,547 | -- |
| Industrials | 226,186 | 177,704 | 48,482 | -- |
| Information Technology | 256,089 | 232,630 | 23,459 | -- |
| Materials | 73,570 | 54,647 | 18,923 | -- |
| Real Estate | 6,913 | 6,913 | -- | -- |
| Telecommunication Services | 41,694 | 8,475 | 33,219 | -- |
| Utilities | 2,164 | 2,164 | -- | -- |
| Government Obligations | 1,920 | -- | 1,920 | -- |
| Money Market Funds | 146,075 | 146,075 | -- | -- |
| Total Investments in Securities: | $2,100,412 | $1,547,224 | $553,188 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2017. 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) |
| (Amounts in thousands) | |
| Level 1 to Level 2 | $89,769 |
| Level 2 to Level 1 | $49,055 |
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, 2017 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $87,204) — See accompanying schedule:
Unaffiliated issuers (cost $1,584,657) | $1,954,337 | |
| Fidelity Central Funds (cost $146,079) | 146,075 | |
| Total Investments (cost $1,730,736) | | $2,100,412 |
| Foreign currency held at value (cost $376) | | 376 |
| Receivable for investments sold | | 9,129 |
| Receivable for fund shares sold | | 2,930 |
| Dividends receivable | | 9,020 |
| Distributions receivable from Fidelity Central Funds | | 176 |
| Prepaid expenses | | 1 |
| Other receivables | | 262 |
| Total assets | | 2,122,306 |
| Liabilities | | |
| Payable for investments purchased | $6,949 | |
| Payable for fund shares redeemed | 3,489 | |
| Accrued management fee | 1,095 | |
| Distribution and service plan fees payable | 363 | |
| Other affiliated payables | 388 | |
| Other payables and accrued expenses | 584 | |
| Collateral on securities loaned | 90,684 | |
| Total liabilities | | 103,552 |
| Net Assets | | $2,018,754 |
| Net Assets consist of: | | |
| Paid in capital | | $4,172,691 |
| Undistributed net investment income | | 5,486 |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (2,528,704) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 369,281 |
| Net Assets | | $2,018,754 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($542,003 ÷ 25,560 shares) | | $21.21 |
| Maximum offering price per share (100/94.25 of $21.21) | | $22.50 |
| Class M: | | |
| Net Asset Value and redemption price per share ($214,262 ÷ 10,176 shares) | | $21.06 |
| Maximum offering price per share (100/96.50 of $21.06) | | $21.82 |
| Class C: | | |
| Net Asset Value and offering price per share ($204,876 ÷ 10,091 shares)(a) | | $20.30 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($854,021 ÷ 39,630 shares) | | $21.55 |
| Class Z: | | |
| Net Asset Value, offering price and redemption price per share ($203,592 ÷ 9,454 shares) | | $21.54 |
(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, 2017 (Unaudited) |
| Investment Income | | |
| Dividends | | $17,355 |
| Interest | | 29 |
| Income from Fidelity Central Funds | | 547 |
| Income before foreign taxes withheld | | 17,931 |
| Less foreign taxes withheld | | (1,284) |
| Total income | | 16,647 |
| Expenses | | |
| Management fee | $6,221 | |
| Transfer agent fees | 1,895 | |
| Distribution and service plan fees | 2,205 | |
| Accounting and security lending fees | 414 | |
| Custodian fees and expenses | 133 | |
| Independent trustees' fees and expenses | 4 | |
| Registration fees | 73 | |
| Audit | 50 | |
| Legal | 5 | |
| Miscellaneous | 8 | |
| Total expenses before reductions | 11,008 | |
| Expense reductions | (82) | 10,926 |
| Net investment income (loss) | | 5,721 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | 83,469 | |
| Fidelity Central Funds | (5) | |
| Foreign currency transactions | (149) | |
| Total net realized gain (loss) | | 83,315 |
Change in net unrealized appreciation (depreciation) on:
Investment securities (net of increase in deferred foreign taxes of $275) | 105,093 | |
| Assets and liabilities in foreign currencies | 180 | |
| Total change in net unrealized appreciation (depreciation) | | 105,273 |
| Net gain (loss) | | 188,588 |
| Net increase (decrease) in net assets resulting from operations | | $194,309 |
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, 2017 (Unaudited) | Year ended October 31, 2016 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $5,721 | $18,202 |
| Net realized gain (loss) | 83,315 | 15,579 |
| Change in net unrealized appreciation (depreciation) | 105,273 | (90,409) |
| Net increase (decrease) in net assets resulting from operations | 194,309 | (56,628) |
| Distributions to shareholders from net investment income | (18,146) | (12,902) |
| Distributions to shareholders from net realized gain | (4,351) | – |
| Total distributions | (22,497) | (12,902) |
| Share transactions - net increase (decrease) | (7,936) | (101,000) |
| Redemption fees | 8 | 32 |
| Total increase (decrease) in net assets | 163,884 | (170,498) |
| Net Assets | | |
| Beginning of period | 1,854,870 | 2,025,368 |
| End of period | $2,018,754 | $1,854,870 |
| Other Information | | |
| Undistributed net investment income end of period | $5,486 | $17,911 |
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, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $19.38 | $20.10 | $19.56 | $19.47 | $15.63 | $14.61 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .06 | .18 | .15 | .27B | .19 | .18 |
| Net realized and unrealized gain (loss) | 2.00 | (.77) | .61 | .17 | 3.92 | 1.03 |
| Total from investment operations | 2.06 | (.59) | .76 | .44 | 4.11 | 1.21 |
| Distributions from net investment income | (.19) | (.13) | (.20) | (.18) | (.21) | (.19) |
| Distributions from net realized gain | (.05) | – | (.02) | (.17) | (.06) | – |
| Total distributions | (.23)C | (.13) | (.22) | (.35) | (.27) | (.19) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – | – |
| Net asset value, end of period | $21.21 | $19.38 | $20.10 | $19.56 | $19.47 | $15.63 |
| Total ReturnE,F,G | 10.80% | (2.97)% | 3.93% | 2.28% | 26.69% | 8.47% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.22%J | 1.23% | 1.22% | 1.26% | 1.31% | 1.32% |
| Expenses net of fee waivers, if any | 1.22%J | 1.23% | 1.22% | 1.26% | 1.30% | 1.32% |
| Expenses net of all reductions | 1.21%J | 1.22% | 1.21% | 1.26% | 1.28% | 1.31% |
| Net investment income (loss) | .58%J | .92% | .75% | 1.34%B | 1.08% | 1.20% |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $542 | $574 | $662 | $693 | $756 | $762 |
| Portfolio turnover rateK | 43%J | 31% | 34% | 40% | 50% | 34% |
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 Total distributions of $.23 per share is comprised of distributions from net investment income of $.187 and distributions from net realized gain of $.046 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 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 M
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $19.21 | $19.92 | $19.38 | $19.30 | $15.49 | $14.46 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .03 | .13 | .10 | .21B | .14 | .14 |
| Net realized and unrealized gain (loss) | 1.99 | (.77) | .61 | .18 | 3.89 | 1.03 |
| Total from investment operations | 2.02 | (.64) | .71 | .39 | 4.03 | 1.17 |
| Distributions from net investment income | (.13) | (.07) | (.15) | (.14) | (.16) | (.14) |
| Distributions from net realized gain | (.05) | – | (.02) | (.17) | (.06) | – |
| Total distributions | (.17)C | (.07) | (.17) | (.31) | (.22) | (.14) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – | – |
| Net asset value, end of period | $21.06 | $19.21 | $19.92 | $19.38 | $19.30 | $15.49 |
| Total ReturnE,F,G | 10.65% | (3.22)% | 3.67% | 2.04% | 26.37% | 8.17% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.49%J | 1.49% | 1.48% | 1.51% | 1.55% | 1.58% |
| Expenses net of fee waivers, if any | 1.49%J | 1.49% | 1.48% | 1.51% | 1.55% | 1.58% |
| Expenses net of all reductions | 1.48%J | 1.48% | 1.47% | 1.51% | 1.53% | 1.57% |
| Net investment income (loss) | .31%J | .66% | .49% | 1.09%B | .83% | .94% |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $214 | $224 | $271 | $284 | $319 | $304 |
| Portfolio turnover rateK | 43%J | 31% | 34% | 40% | 50% | 34% |
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 Total distributions of $.17 per share is comprised of distributions from net investment income of $.128 and distributions from net realized gain of $.046 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 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 C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $18.48 | $19.19 | $18.68 | $18.63 | $14.97 | $13.95 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.02) | .03 | –B | .11C | .06 | .06 |
| Net realized and unrealized gain (loss) | 1.92 | (.74) | .59 | .18 | 3.75 | 1.01 |
| Total from investment operations | 1.90 | (.71) | .59 | .29 | 3.81 | 1.07 |
| Distributions from net investment income | (.03) | – | (.06) | (.07) | (.09) | (.05) |
| Distributions from net realized gain | (.05) | – | (.02) | (.17) | (.06) | – |
| Total distributions | (.08) | – | (.08) | (.24) | (.15) | (.05) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $20.30 | $18.48 | $19.19 | $18.68 | $18.63 | $14.97 |
| Total ReturnD,E,F | 10.32% | (3.70)% | 3.15% | 1.58% | 25.71% | 7.71% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 1.98%I | 1.98% | 1.97% | 2.00% | 2.04% | 2.06% |
| Expenses net of fee waivers, if any | 1.98%I | 1.98% | 1.97% | 2.00% | 2.04% | 2.06% |
| Expenses net of all reductions | 1.97%I | 1.98% | 1.96% | 2.00% | 2.01% | 2.05% |
| Net investment income (loss) | (.17)%I | .17% | - %J | .60%C | .35% | .46% |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $205 | $206 | $251 | $243 | $264 | $246 |
| Portfolio turnover rateK | 43%I | 31% | 34% | 40% | 50% | 34% |
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 $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .11%.
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 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 Diversified International Fund Class I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $19.73 | $20.46 | $19.91 | $19.80 | $15.90 | $14.87 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .09 | .24 | .21 | .33B | .24 | .23 |
| Net realized and unrealized gain (loss) | 2.03 | (.78) | .63 | .18 | 3.98 | 1.05 |
| Total from investment operations | 2.12 | (.54) | .84 | .51 | 4.22 | 1.28 |
| Distributions from net investment income | (.25) | (.19) | (.26) | (.23) | (.26) | (.25) |
| Distributions from net realized gain | (.05) | – | (.02) | (.17) | (.06) | – |
| Total distributions | (.30) | (.19) | (.29)C | (.40) | (.32) | (.25) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – | – |
| Net asset value, end of period | $21.55 | $19.73 | $20.46 | $19.91 | $19.80 | $15.90 |
| Total ReturnE,F | 10.91% | (2.69)% | 4.24% | 2.60% | 27.03% | 8.83% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | .94%I | .94% | .94% | .97% | .99% | 1.00% |
| Expenses net of fee waivers, if any | .94%I | .94% | .94% | .97% | .99% | 1.00% |
| Expenses net of all reductions | .93%I | .94% | .94% | .97% | .97% | .99% |
| Net investment income (loss) | .86%I | 1.21% | 1.03% | 1.63%B | 1.39% | 1.52% |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $854 | $757 | $747 | $648 | $636 | $546 |
| Portfolio turnover rateJ | 43%I | 31% | 34% | 40% | 50% | 34% |
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 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.
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.
Financial Highlights — Fidelity Advisor Diversified International Fund Class Z
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 A |
| Selected Per–Share Data | | | | | |
| Net asset value, beginning of period | $19.73 | $20.46 | $19.93 | $19.81 | $18.54 |
| Income from Investment Operations | | | | | |
| Net investment income (loss)B | .10 | .27 | .24 | .36C | .03 |
| Net realized and unrealized gain (loss) | 2.04 | (.78) | .61 | .19 | 1.24 |
| Total from investment operations | 2.14 | (.51) | .85 | .55 | 1.27 |
| Distributions from net investment income | (.28) | (.22) | (.30) | (.26) | – |
| Distributions from net realized gain | (.05) | – | (.02) | (.17) | – |
| Total distributions | (.33) | (.22) | (.32) | (.43) | – |
| Redemption fees added to paid in capitalB | –D | –D | –D | –D | – |
| Net asset value, end of period | $21.54 | $19.73 | $20.46 | $19.93 | $19.81 |
| Total ReturnE,F | 11.04% | (2.54)% | 4.34% | 2.81% | 6.85% |
| Ratios to Average Net AssetsG,H | | | | | |
| Expenses before reductions | .79%I | .79% | .79% | .81% | .83%I |
| Expenses net of fee waivers, if any | .79%I | .79% | .79% | .81% | .83%I |
| Expenses net of all reductions | .78%I | .79% | .78% | .81% | .80%I |
| Net investment income (loss) | 1.01%I | 1.36% | 1.18% | 1.79%C | .77%I |
| Supplemental Data | | | | | |
| Net assets, end of period (000 omitted) | $203,592 | $92,860 | $82,925 | $24,050 | $107 |
| Portfolio turnover rateJ | 43%I | 31% | 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. 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, 2017
(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 M (formerly Class T), Class C, Class I and Class Z 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.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All prior fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
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 Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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 Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The 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. Foreign government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds,including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of April 30, 2017, 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. 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. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain 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, future 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 | $425,475 |
| Gross unrealized depreciation | (72,712) |
| Net unrealized appreciation (depreciation) on securities | $352,763 |
| Tax cost | $1,747,649 |
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 | $(2,594,652) |
| Total capital loss carryforward | $(2,594,652) |
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. In November 2016, the Board of Trustees approved the elimination of these redemption fees effective December 12, 2016.
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 $392,026 and $455,934, 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. 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% | $682 | $– |
| Class M | .25% | .25% | 534 | –(a) |
| Class C | .75% | .25% | 989 | 41 |
| | | | $2,205 | $41 |
(a) In the amount of less than five hundred dollars.
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $33 |
| Class M | 7 |
| Class C(a) | 2 |
| | $42 |
(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 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 | $619 | .23 |
| Class M | 260 | .24 |
| Class C | 231 | .23 |
| Class I | 756 | .20 |
| Class Z | 29 | .05 |
| | $1,895 | |
(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 $2 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 $3 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 $429. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $384, including $3 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 $74 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 expenses by an amount less than five hundred dollars.
In addition, during the period the investment advisor reimbursed and/or waived a portion of fund-level operating expenses in the amount of $8.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2017 | Year ended October 31, 2016 |
| From net investment income | | |
| Class A | $5,441 | $4,188 |
| Class M | 1,460 | 941 |
| Class C | 337 | – |
| Class I | 9,584 | 6,836 |
| Class Z | 1,324 | 937 |
| Total | $18,146 | $12,902 |
| From net realized gain | | |
| Class A | $1,338 | $– |
| Class M | 524 | – |
| Class C | 500 | – |
| Class I | 1,772 | – |
| Class Z | 217 | – |
| Total | $4,351 | $– |
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, 2017 | Year ended October 31, 2016 | Six months ended
April 30, 2017 | Year ended October 31, 2016 |
| Class A | | | | |
| Shares sold | 1,895 | 4,511 | $37,246 | $86,702 |
| Reinvestment of distributions | 342 | 200 | 6,436 | 3,990 |
| Shares redeemed | (6,318) | (7,981) | (123,909) | (153,400) |
| Net increase (decrease) | (4,081) | (3,270) | $(80,227) | $(62,708) |
| Class M | | | | |
| Shares sold | 424 | 1,081 | $8,272 | $20,518 |
| Reinvestment of distributions | 102 | 46 | 1,912 | 909 |
| Shares redeemed | (1,996) | (3,108) | (38,926) | (59,258) |
| Net increase (decrease) | (1,470) | (1,981) | $(28,742) | $(37,831) |
| Class B | | | | |
| Shares sold | – | 3 | $– | $57 |
| Shares redeemed | – | (578) | – | (10,435) |
| Net increase (decrease) | – | (575) | $– | $(10,378) |
| Class C | | | | |
| Shares sold | 305 | 1,039 | $5,725 | $19,189 |
| Reinvestment of distributions | 40 | – | 720 | – |
| Shares redeemed | (1,423) | (2,956) | (26,496) | (54,266) |
| Net increase (decrease) | (1,078) | (1,917) | $(20,051) | $(35,077) |
| Class I | | | | |
| Shares sold | 9,060 | 16,017 | $180,226 | $309,300 |
| Reinvestment of distributions | 479 | 284 | 9,168 | 5,760 |
| Shares redeemed | (8,302) | (14,428) | (164,749) | (283,183) |
| Net increase (decrease) | 1,237 | 1,873 | $24,645 | $31,877 |
| Class Z | | | | |
| Shares sold | 5,854 | 1,247 | $118,788 | $24,679 |
| Reinvestment of distributions | 81 | 46 | 1,541 | 937 |
| Shares redeemed | (1,187) | (639) | (23,890) | (12,499) |
| Net increase (decrease) | 4,748 | 654 | $96,439 | $13,117 |
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, 2016 to April 30, 2017).
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, 2016 | Ending
Account Value
April 30, 2017 | Expenses Paid
During Period-B
November 1, 2016
to April 30, 2017 |
| Class A | 1.22% | | | |
| Actual | | $1,000.00 | $1,108.00 | $6.38 |
| Hypothetical-C | | $1,000.00 | $1,018.74 | $6.11 |
| Class M | 1.49% | | | |
| Actual | | $1,000.00 | $1,106.50 | $7.78 |
| Hypothetical-C | | $1,000.00 | $1,017.41 | $7.45 |
| Class C | 1.98% | | | |
| Actual | | $1,000.00 | $1,103.20 | $10.33 |
| Hypothetical-C | | $1,000.00 | $1,014.98 | $9.89 |
| Class I | .94% | | | |
| Actual | | $1,000.00 | $1,109.10 | $4.92 |
| Hypothetical-C | | $1,000.00 | $1,020.13 | $4.71 |
| Class Z | .79% | | | |
| Actual | | $1,000.00 | $1,110.40 | $4.13 |
| Hypothetical-C | | $1,000.00 | $1,020.88 | $3.96 |
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 181/365 (to reflect the one-half year period).
C 5% return per year before expenses
ADIF-SANN-0617
1.720067.118
Fidelity Advisor® International Capital Appreciation Fund
Class A, Class M (formerly Class T), Class C, Class I and Class Z
Semi-Annual Report April 30, 2017 |
|
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. © 2017 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.institutional.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, 2017
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Nestle SA (Reg. S) (Switzerland, Food Products) | 1.7 | 1.8 |
| Tencent Holdings Ltd. (Cayman Islands, Internet Software & Services) | 1.4 | 1.2 |
| Unilever PLC (United Kingdom, Personal Products) | 1.3 | 1.2 |
| Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR (Taiwan, Semiconductors & Semiconductor Equipment) | 1.2 | 1.3 |
| British American Tobacco PLC (United Kingdom) (United Kingdom, Tobacco) | 1.1 | 1.1 |
| | 6.7 | |
Top Five Market Sectors as of April 30, 2017
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Industrials | 22.1 | 18.0 |
| Information Technology | 17.0 | 17.3 |
| Consumer Staples | 13.4 | 18.7 |
| Consumer Discretionary | 13.0 | 14.6 |
| Financials | 12.2 | 7.7 |
Top Five Countries as of April 30, 2017
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| United Kingdom | 15.3 | 10.8 |
| United States of America | 12.1 | 19.5 |
| France | 8.8 | 3.1 |
| Japan | 5.6 | 12.4 |
| Germany | 5.2 | 4.9 |
Percentages are adjusted for the effect of futures contracts, if applicable.
Asset Allocation (% of fund's net assets)
| As of April 30, 2017 |
| | Stocks | 96.9% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 3.1% |
| As of October 31, 2016 |
| | Stocks | 98.0% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 2.0% |
Investments April 30, 2017 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 96.2% | | | |
| | | Shares | Value |
| Australia - 2.4% | | | |
| Amcor Ltd. | | 303,220 | $3,566,973 |
| CSL Ltd. | | 42,791 | 4,247,154 |
| realestate.com.au Ltd. | | 68,727 | 3,164,446 |
| Sydney Airport unit | | 627,531 | 3,237,578 |
|
| TOTAL AUSTRALIA | | | 14,216,151 |
|
| Bailiwick of Guernsey - 0.5% | | | |
| Burford Capital Ltd. | | 310,400 | 3,135,835 |
| Bailiwick of Jersey - 1.8% | | | |
| Experian PLC | | 165,500 | 3,560,364 |
| Wolseley PLC | | 61,045 | 3,879,846 |
| WPP PLC | | 174,700 | 3,740,943 |
|
| TOTAL BAILIWICK OF JERSEY | | | 11,181,153 |
|
| Belgium - 0.9% | | | |
| Anheuser-Busch InBev SA NV | | 49,320 | 5,561,835 |
| Bermuda - 1.0% | | | |
| Credicorp Ltd. (United States) | | 21,700 | 3,334,422 |
| IHS Markit Ltd. (a) | | 68,000 | 2,951,200 |
|
| TOTAL BERMUDA | | | 6,285,622 |
|
| Brazil - 1.6% | | | |
| Equatorial Energia SA | | 179,000 | 3,242,139 |
| Kroton Educacional SA | | 689,800 | 3,249,007 |
| Ultrapar Participacoes SA | | 138,200 | 3,066,128 |
|
| TOTAL BRAZIL | | | 9,557,274 |
|
| Canada - 4.1% | | | |
| Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | | 83,610 | 3,845,307 |
| Canadian National Railway Co. | | 64,340 | 4,650,693 |
| CCL Industries, Inc. Class B | | 14,710 | 3,405,267 |
| Constellation Software, Inc. | | 6,780 | 3,100,954 |
| Descartes Systems Group, Inc. (a) | | 129,200 | 2,981,429 |
| Open Text Corp. | | 95,200 | 3,300,843 |
| Waste Connection, Inc. (Canada) | | 36,220 | 3,332,118 |
|
| TOTAL CANADA | | | 24,616,611 |
|
| Cayman Islands - 3.2% | | | |
| Alibaba Group Holding Ltd. sponsored ADR (a) | | 59,460 | 6,867,630 |
| NetEase, Inc. ADR | | 13,800 | 3,662,382 |
| Tencent Holdings Ltd. | | 271,900 | 8,519,535 |
|
| TOTAL CAYMAN ISLANDS | | | 19,049,547 |
|
| Denmark - 1.2% | | | |
| Coloplast A/S Series B | | 42,000 | 3,596,284 |
| DSV de Sammensluttede Vognmaend A/S | | 61,000 | 3,398,294 |
|
| TOTAL DENMARK | | | 6,994,578 |
|
| France - 8.8% | | | |
| ALTEN | | 8,503 | 720,608 |
| Dassault Systemes SA | | 38,600 | 3,444,909 |
| Essilor International SA | | 29,556 | 3,829,637 |
| Imerys SA | | 37,100 | 3,192,225 |
| L'Oreal SA | | 22,120 | 4,405,829 |
| Legrand SA | | 58,600 | 3,793,594 |
| LVMH Moet Hennessy - Louis Vuitton SA (b) | | 21,937 | 5,415,563 |
| Orpea | | 33,030 | 3,373,445 |
| Rubis | | 32,000 | 3,251,517 |
| Sartorius Stedim Biotech (b) | | 48,500 | 3,252,808 |
| Sodexo SA | | 27,540 | 3,500,921 |
| SR Teleperformance SA | | 28,600 | 3,593,612 |
| Thales SA | | 32,830 | 3,451,721 |
| Valeo SA | | 50,500 | 3,630,637 |
| VINCI SA | | 53,800 | 4,585,836 |
|
| TOTAL FRANCE | | | 53,442,862 |
|
| Germany - 5.2% | | | |
| adidas AG | | 19,065 | 3,819,144 |
| Fresenius SE & Co. KGaA | | 50,200 | 4,068,952 |
| HeidelbergCement Finance AG | | 39,600 | 3,666,584 |
| Henkel AG & Co. KGaA | | 35,313 | 4,121,680 |
| Rheinmetall AG | | 32,500 | 2,982,640 |
| SAP AG | | 58,407 | 5,850,398 |
| Symrise AG | | 51,500 | 3,605,480 |
| Wirecard AG (b) | | 52,200 | 3,082,460 |
|
| TOTAL GERMANY | | | 31,197,338 |
|
| Hong Kong - 1.5% | | | |
| AIA Group Ltd. | | 817,200 | 5,657,526 |
| Techtronic Industries Co. Ltd. | | 742,000 | 3,186,126 |
|
| TOTAL HONG KONG | | | 8,843,652 |
|
| India - 5.1% | | | |
| Adani Ports & Special Economic Zone Ltd. (a) | | 624,901 | 3,185,255 |
| Asian Paints Ltd. | | 199,411 | 3,475,347 |
| HDFC Bank Ltd. | | 140,307 | 3,425,157 |
| Housing Development Finance Corp. Ltd. | | 173,728 | 4,153,772 |
| IndusInd Bank Ltd. (a) | | 145,287 | 3,265,398 |
| ITC Ltd. | | 744,009 | 3,217,211 |
| LIC Housing Finance Ltd. | | 330,837 | 3,442,166 |
| Maruti Suzuki India Ltd. | | 33,499 | 3,399,844 |
| Zee Entertainment Enterprises Ltd. | | 378,578 | 3,102,408 |
|
| TOTAL INDIA | | | 30,666,558 |
|
| Indonesia - 1.1% | | | |
| PT Bank Central Asia Tbk | | 2,774,200 | 3,694,354 |
| PT Bank Rakyat Indonesia Tbk | | 3,289,600 | 3,183,723 |
|
| TOTAL INDONESIA | | | 6,878,077 |
|
| Ireland - 2.4% | | | |
| CRH PLC | | 120,700 | 4,400,840 |
| James Hardie Industries PLC CDI | | 188,730 | 3,203,748 |
| Kerry Group PLC Class A | | 41,920 | 3,425,672 |
| Kingspan Group PLC (Ireland) | | 98,060 | 3,411,193 |
|
| TOTAL IRELAND | | | 14,441,453 |
|
| Israel - 1.1% | | | |
| Check Point Software Technologies Ltd. (a) | | 31,800 | 3,307,518 |
| Frutarom Industries Ltd. | | 56,400 | 3,315,357 |
|
| TOTAL ISRAEL | | | 6,622,875 |
|
| Italy - 1.1% | | | |
| Buzzi Unicem SpA | | 131,700 | 3,385,675 |
| Davide Campari-Milano SpA | | 268,200 | 3,172,752 |
|
| TOTAL ITALY | | | 6,558,427 |
|
| Japan - 5.6% | | | |
| Benefit One, Inc. | | 94,300 | 2,880,390 |
| Daikin Industries Ltd. | | 38,100 | 3,699,776 |
| Kansai Paint Co. Ltd. | | 156,900 | 3,473,686 |
| Keyence Corp. | | 9,754 | 3,919,975 |
| Misumi Group, Inc. | | 163,700 | 3,099,984 |
| Nitori Holdings Co. Ltd. | | 25,200 | 3,280,126 |
| Recruit Holdings Co. Ltd. | | 68,100 | 3,439,363 |
| Relo Holdings Corp. | | 200,100 | 3,284,889 |
| Sundrug Co. Ltd. | | 92,100 | 3,230,419 |
| Tsuruha Holdings, Inc. | | 33,100 | 3,355,281 |
|
| TOTAL JAPAN | | | 33,663,889 |
|
| Kenya - 0.5% | | | |
| Safaricom Ltd. | | 16,644,600 | 3,104,734 |
| Luxembourg - 0.4% | | | |
| Eurofins Scientific SA | | 5,120 | 2,521,459 |
| Mexico - 1.9% | | | |
| CEMEX S.A.B. de CV sponsored ADR | | 380,000 | 3,503,600 |
| Grupo Aeroportuario del Pacifico S.A.B. de CV Series B | | 338,700 | 3,483,211 |
| Grupo Aeroportuario del Sureste S.A.B. de CV Series B | | 188,510 | 3,577,086 |
| Grupo Cementos de Chihuahua S.A.B. de CV | | 222,100 | 1,053,442 |
|
| TOTAL MEXICO | | | 11,617,339 |
|
| Netherlands - 2.6% | | | |
| ASML Holding NV (Netherlands) | | 31,500 | 4,163,876 |
| Heineken NV (Bearer) | | 41,500 | 3,700,107 |
| RELX NV | | 227,921 | 4,408,111 |
| Wolters Kluwer NV | | 81,000 | 3,440,216 |
|
| TOTAL NETHERLANDS | | | 15,712,310 |
|
| New Zealand - 0.5% | | | |
| Auckland International Airport Ltd. | | 618,003 | 2,927,814 |
| Philippines - 1.2% | | | |
| Ayala Land, Inc. | | 1,451,600 | 1,021,734 |
| SM Investments Corp. | | 213,642 | 3,101,231 |
| SM Prime Holdings, Inc. | | 4,829,500 | 2,869,687 |
|
| TOTAL PHILIPPINES | | | 6,992,652 |
|
| Russia - 0.7% | | | |
| Sberbank of Russia | | 1,379,270 | 4,006,170 |
| South Africa - 2.0% | | | |
| Capitec Bank Holdings Ltd. | | 58,100 | 3,315,205 |
| FirstRand Ltd. | | 869,600 | 3,243,817 |
| Naspers Ltd. Class N | | 29,880 | 5,681,727 |
|
| TOTAL SOUTH AFRICA | | | 12,240,749 |
|
| Spain - 1.8% | | | |
| Aena SA | | 20,930 | 3,693,446 |
| Amadeus IT Holding SA Class A | | 76,160 | 4,106,574 |
| Grifols SA | | 124,800 | 3,351,715 |
|
| TOTAL SPAIN | | | 11,151,735 |
|
| Sweden - 3.6% | | | |
| ASSA ABLOY AB (B Shares) (b) | | 182,018 | 3,943,556 |
| Atlas Copco AB (A Shares) | | 111,000 | 4,150,610 |
| Hexagon AB (B Shares) | | 77,500 | 3,374,815 |
| Indutrade AB | | 155,168 | 3,666,655 |
| Saab AB (B Shares) | | 67,800 | 3,361,946 |
| Svenska Cellulosa AB (SCA) (B Shares) | | 103,100 | 3,415,210 |
|
| TOTAL SWEDEN | | | 21,912,792 |
|
| Switzerland - 3.3% | | | |
| Kaba Holding AG (B Shares) (Reg.) | | 3,970 | 3,401,432 |
| Nestle SA (Reg. S) | | 131,859 | 10,155,843 |
| Partners Group Holding AG | | 5,710 | 3,451,824 |
| Sika AG | | 476 | 3,037,789 |
|
| TOTAL SWITZERLAND | | | 20,046,888 |
|
| Taiwan - 1.2% | | | |
| Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | | 227,070 | 7,509,205 |
| Thailand - 0.5% | | | |
| Airports of Thailand PCL (For. Reg.) | | 2,560,300 | 2,978,384 |
| United Kingdom - 15.3% | | | |
| Ascential PLC | | 745,997 | 3,408,808 |
| Ashtead Group PLC | | 167,300 | 3,534,164 |
| BAE Systems PLC | | 478,100 | 3,883,117 |
| British American Tobacco PLC (United Kingdom) | | 101,800 | 6,877,951 |
| Bunzl PLC | | 117,100 | 3,652,164 |
| Cineworld Group PLC | | 146,600 | 1,336,729 |
| Compass Group PLC | | 218,941 | 4,420,596 |
| ConvaTec Group PLC | | 832,500 | 3,311,318 |
| Halma PLC | | 242,600 | 3,308,689 |
| Imperial Tobacco Group PLC | | 91,623 | 4,488,104 |
| Inchcape PLC | | 263,000 | 2,910,748 |
| InterContinental Hotel Group PLC | | 62,500 | 3,315,712 |
| Intertek Group PLC | | 67,400 | 3,549,475 |
| John David Group PLC | | 541,700 | 3,122,164 |
| London Stock Exchange Group PLC | | 82,800 | 3,628,016 |
| Mondi PLC | | 132,200 | 3,426,221 |
| Prudential PLC | | 216,071 | 4,795,450 |
| Reckitt Benckiser Group PLC | | 51,130 | 4,710,993 |
| Rentokil Initial PLC | | 1,018,200 | 3,283,744 |
| Rightmove PLC | | 61,430 | 3,330,555 |
| Sage Group PLC | | 410,800 | 3,564,857 |
| St. James's Place Capital PLC | | 241,300 | 3,587,865 |
| Unilever PLC | | 147,600 | 7,593,774 |
| Worldpay Group PLC | | 849,100 | 3,299,263 |
|
| TOTAL UNITED KINGDOM | | | 92,340,477 |
|
| United States of America - 12.1% | | | |
| A.O. Smith Corp. | | 58,784 | 3,167,282 |
| Adobe Systems, Inc. (a) | | 23,660 | 3,164,288 |
| Alphabet, Inc. Class C (a) | | 2,960 | 2,681,642 |
| Altria Group, Inc. | | 41,770 | 2,998,251 |
| Amazon.com, Inc. (a) | | 2,960 | 2,737,970 |
| American Tower Corp. | | 24,400 | 3,072,936 |
| Amphenol Corp. Class A | | 41,462 | 2,998,117 |
| Ecolab, Inc. | | 22,200 | 2,865,798 |
| Equifax, Inc. | | 22,700 | 3,071,537 |
| Facebook, Inc. Class A (a) | | 22,130 | 3,325,033 |
| Fiserv, Inc. (a) | | 25,829 | 3,077,267 |
| Henry Schein, Inc. (a) | | 17,710 | 3,077,998 |
| Home Depot, Inc. | | 20,600 | 3,215,660 |
| Marriott International, Inc. Class A | | 32,200 | 3,040,324 |
| MasterCard, Inc. Class A | | 26,650 | 3,099,928 |
| Mettler-Toledo International, Inc. (a) | | 6,280 | 3,224,278 |
| Moody's Corp. | | 28,040 | 3,317,693 |
| MSCI, Inc. | | 29,290 | 2,938,373 |
| Philip Morris International, Inc. | | 27,410 | 3,038,124 |
| Priceline Group, Inc. (a) | | 1,520 | 2,807,166 |
| S&P Global, Inc. | | 23,964 | 3,215,729 |
| Sherwin-Williams Co. | | 8,780 | 2,938,490 |
| The Walt Disney Co. | | 25,800 | 2,982,480 |
| Visa, Inc. Class A | | 34,240 | 3,123,373 |
|
| TOTAL UNITED STATES OF AMERICA | | | 73,179,737 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $510,504,456) | | | 581,156,182 |
|
| Nonconvertible Preferred Stocks - 0.7% | | | |
| Brazil - 0.7% | | | |
| Itau Unibanco Holding SA sponsored ADR | | | |
| (Cost $3,614,155) | | 338,280 | 4,160,844 |
|
| Money Market Funds - 4.3% | | | |
| Fidelity Cash Central Fund, 0.85% (c) | | 15,788,222 | 15,791,380 |
| Fidelity Securities Lending Cash Central Fund 0.86% (c)(d) | | 10,155,254 | 10,156,269 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $25,947,869) | | | 25,947,649 |
| TOTAL INVESTMENT PORTFOLIO - 101.2% | | | |
| (Cost $540,066,480) | | | 611,264,675 |
| NET OTHER ASSETS (LIABILITIES) - (1.2)% | | | (7,356,530) |
| NET ASSETS - 100% | | | $603,908,145 |
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 | $23,568 |
| Fidelity Securities Lending Cash Central Fund | 47,231 |
| Total | $70,799 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2017, 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 | $78,469,249 | $59,210,420 | $19,258,829 | $-- |
| Consumer Staples | 81,314,343 | 46,413,947 | 34,900,396 | -- |
| Energy | 3,066,128 | 3,066,128 | -- | -- |
| Financials | 72,953,339 | 60,726,562 | 12,226,777 | -- |
| Health Care | 37,855,048 | 34,258,764 | 3,596,284 | -- |
| Industrials | 133,408,638 | 117,499,475 | 15,909,163 | -- |
| Information Technology | 102,886,123 | 88,516,190 | 14,369,933 | -- |
| Materials | 55,516,522 | 51,115,682 | 4,400,840 | -- |
| Real Estate | 10,249,246 | 10,249,246 | -- | -- |
| Telecommunication Services | 3,104,734 | 3,104,734 | -- | -- |
| Utilities | 6,493,656 | 6,493,656 | -- | -- |
| Money Market Funds | 25,947,649 | 25,947,649 | -- | -- |
| Total Investments in Securities: | $611,264,675 | $506,602,453 | $104,662,222 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2017. 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 | $17,755,072 |
| Level 2 to Level 1 | $5,324,084 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | April 30, 2017 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $9,729,459) — See accompanying schedule:
Unaffiliated issuers (cost $514,118,611) | $585,317,026 | |
| Fidelity Central Funds (cost $25,947,869) | 25,947,649 | |
| Total Investments (cost $540,066,480) | | $611,264,675 |
| Foreign currency held at value (cost $203,321) | | 203,321 |
| Receivable for investments sold | | 14,378,334 |
| Receivable for fund shares sold | | 2,427,608 |
| Dividends receivable | | 1,545,761 |
| Distributions receivable from Fidelity Central Funds | | 27,163 |
| Prepaid expenses | | 205 |
| Receivable from investment adviser for expense reductions | | 99 |
| Other receivables | | 344,130 |
| Total assets | | 630,191,296 |
| Liabilities | | |
| Payable for investments purchased | $14,246,251 | |
| Payable for fund shares redeemed | 733,303 | |
| Accrued management fee | 374,757 | |
| Distribution and service plan fees payable | 92,850 | |
| Other affiliated payables | 110,134 | |
| Other payables and accrued expenses | 569,368 | |
| Collateral on securities loaned | 10,156,488 | |
| Total liabilities | | 26,283,151 |
| Net Assets | | $603,908,145 |
| Net Assets consist of: | | |
| Paid in capital | | $563,929,340 |
| Undistributed net investment income | | 477,962 |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (31,108,280) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 70,609,123 |
| Net Assets | | $603,908,145 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($113,461,466 ÷ 6,744,612 shares) | | $16.82 |
| Maximum offering price per share (100/94.25 of $16.82) | | $17.85 |
| Class M: | | |
| Net Asset Value and redemption price per share ($67,386,588 ÷ 4,098,578 shares) | | $16.44 |
| Maximum offering price per share (100/96.50 of $16.44) | | $17.04 |
| Class C: | | |
| Net Asset Value and offering price per share ($54,219,519 ÷ 3,625,398 shares)(a) | | $14.96 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($357,799,034 ÷ 19,942,676 shares) | | $17.94 |
| Class Z: | | |
| Net Asset Value, offering price and redemption price per share ($11,041,538 ÷ 615,210 shares) | | $17.95 |
(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, 2017 (Unaudited) |
| Investment Income | | |
| Dividends | | $4,140,710 |
| Income from Fidelity Central Funds | | 70,799 |
| Income before foreign taxes withheld | | 4,211,509 |
| Less foreign taxes withheld | | (364,631) |
| Total income | | 3,846,878 |
| Expenses | | |
| Management fee | | |
| Basic fee | $1,649,597 | |
| Performance adjustment | 222,317 | |
| Transfer agent fees | 483,192 | |
| Distribution and service plan fees | 530,233 | |
| Accounting and security lending fees | 122,312 | |
| Custodian fees and expenses | 123,092 | |
| Independent trustees' fees and expenses | 899 | |
| Registration fees | 74,007 | |
| Audit | 43,033 | |
| Legal | 1,429 | |
| Interest | 192 | |
| Miscellaneous | 1,618 | |
| Total expenses before reductions | 3,251,921 | |
| Expense reductions | (85,121) | 3,166,800 |
| Net investment income (loss) | | 680,078 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (2,078,118) | |
| Fidelity Central Funds | (1,000) | |
| Foreign currency transactions | 39,167 | |
| Total net realized gain (loss) | | (2,039,951) |
Change in net unrealized appreciation (depreciation) on:
Investment securities (net of increase in deferred foreign taxes of $499,534) | 56,764,068 | |
| Assets and liabilities in foreign currencies | 40,678 | |
| Total change in net unrealized appreciation (depreciation) | | 56,804,746 |
| Net gain (loss) | | 54,764,795 |
| Net increase (decrease) in net assets resulting from operations | | $55,444,873 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended April 30, 2017 (Unaudited) | Year ended October 31, 2016 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $680,078 | $788,667 |
| Net realized gain (loss) | (2,039,951) | (4,570,627) |
| Change in net unrealized appreciation (depreciation) | 56,804,746 | (437,385) |
| Net increase (decrease) in net assets resulting from operations | 55,444,873 | (4,219,345) |
| Distributions to shareholders from net investment income | (869,630) | (237,879) |
| Share transactions - net increase (decrease) | 147,172,285 | 146,558,359 |
| Redemption fees | 18,892 | 21,382 |
| Total increase (decrease) in net assets | 201,766,420 | 142,122,517 |
| Net Assets | | |
| Beginning of period | 402,141,725 | 260,019,208 |
| End of period | $603,908,145 | $402,141,725 |
| Other Information | | |
| Undistributed net investment income end of period | $477,962 | $667,514 |
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, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $15.26 | $15.25 | $14.77 | $13.96 | $11.25 | $10.21 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .02 | .05 | .05 | .06 | .07 | .08 |
| Net realized and unrealized gain (loss) | 1.56 | (.03) | .46 | .82 | 2.73 | 1.05 |
| Total from investment operations | 1.58 | .02 | .51 | .88 | 2.80 | 1.13 |
| Distributions from net investment income | (.02) | (.01) | (.03) | (.07) | (.09) | (.09) |
| Distributions from net realized gain | – | – | – | – | – | (.01) |
| Total distributions | (.02) | (.01) | (.03) | (.07) | (.09) | (.09)B |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
| Net asset value, end of period | $16.82 | $15.26 | $15.25 | $14.77 | $13.96 | $11.25 |
| Total ReturnD,E,F | 10.34% | .12% | 3.46% | 6.31% | 24.99% | 11.19% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 1.43%I | 1.50% | 1.58% | 1.73% | 1.74% | 1.78% |
| Expenses net of fee waivers, if any | 1.42%I | 1.45% | 1.45% | 1.45% | 1.45% | 1.45% |
| Expenses net of all reductions | 1.39%I | 1.43% | 1.42% | 1.44% | 1.39% | 1.41% |
| Net investment income (loss) | .23%I | .34% | .30% | .42% | .58% | .73% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $113,461 | $127,536 | $89,753 | $51,567 | $49,797 | $40,624 |
| Portfolio turnover rateJ | 180%I | 167% | 176% | 197% | 138% | 142% |
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 $.085 and distributions from net realized gain of $.005 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 International Capital Appreciation Fund Class M
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $14.92 | $14.94 | $14.47 | $13.68 | $11.03 | $10.00 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | –B | .01 | .01 | .02 | .04 | .05 |
| Net realized and unrealized gain (loss) | 1.52 | (.03) | .46 | .81 | 2.66 | 1.04 |
| Total from investment operations | 1.52 | (.02) | .47 | .83 | 2.70 | 1.09 |
| Distributions from net investment income | – | – | – | (.04) | (.05) | (.06) |
| Distributions from net realized gain | – | – | – | – | – | (.01) |
| Total distributions | – | – | – | (.04) | (.05) | (.06)C |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $16.44 | $14.92 | $14.94 | $14.47 | $13.68 | $11.03 |
| Total ReturnD,E,F | 10.19% | (.13)% | 3.25% | 6.07% | 24.57% | 10.99% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 1.68%I | 1.76% | 1.86% | 1.94% | 1.96% | 2.03% |
| Expenses net of fee waivers, if any | 1.68%I | 1.70% | 1.70% | 1.70% | 1.70% | 1.70% |
| Expenses net of all reductions | 1.65%I | 1.68% | 1.67% | 1.69% | 1.64% | 1.66% |
| Net investment income (loss) | (.02)%I | .09% | .05% | .17% | .33% | .48% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $67,387 | $62,866 | $60,293 | $58,454 | $60,152 | $53,835 |
| Portfolio turnover rateJ | 180%I | 167% | 176% | 197% | 138% | 142% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C 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.
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 International Capital Appreciation Fund Class C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $13.61 | $13.69 | $13.33 | $12.63 | $10.18 | $9.23 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.04) | (.06) | (.06) | (.04) | (.02) | –B |
| Net realized and unrealized gain (loss) | 1.39 | (.02) | .42 | .74 | 2.47 | .96 |
| Total from investment operations | 1.35 | (.08) | .36 | .70 | 2.45 | .96 |
| Distributions from net investment income | – | – | – | – | – | (.01) |
| Distributions from net realized gain | – | – | – | – | – | (.01) |
| Total distributions | – | – | – | – | – | (.01)C |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $14.96 | $13.61 | $13.69 | $13.33 | $12.63 | $10.18 |
| Total ReturnD,E,F | 9.92% | (.58)% | 2.70% | 5.54% | 24.07% | 10.41% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 2.18%I | 2.27% | 2.33% | 2.47% | 2.49% | 2.53% |
| Expenses net of fee waivers, if any | 2.18%I | 2.20% | 2.20% | 2.20% | 2.20% | 2.20% |
| Expenses net of all reductions | 2.15%I | 2.18% | 2.17% | 2.19% | 2.14% | 2.16% |
| Net investment income (loss) | (.53)%I | (.41)% | (.45)% | (.33)% | (.17)% | (.02)% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $54,220 | $42,146 | $36,491 | $20,910 | $21,334 | $18,090 |
| Portfolio turnover rateJ | 180%I | 167% | 176% | 197% | 138% | 142% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C 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.
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 I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $16.30 | $16.28 | $15.75 | $14.87 | $11.99 | $10.87 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .04 | .10 | .09 | .10 | .11 | .11 |
| Net realized and unrealized gain (loss) | 1.66 | (.04) | .51 | .87 | 2.89 | 1.13 |
| Total from investment operations | 1.70 | .06 | .60 | .97 | 3.00 | 1.24 |
| Distributions from net investment income | (.06) | (.04) | (.07) | (.09) | (.12) | (.12) |
| Distributions from net realized gain | – | – | – | – | – | (.01) |
| Total distributions | (.06) | (.04) | (.07) | (.09) | (.12) | (.12)B |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
| Net asset value, end of period | $17.94 | $16.30 | $16.28 | $15.75 | $14.87 | $11.99 |
| Total ReturnD,E | 10.47% | .36% | 3.80% | 6.58% | 25.20% | 11.56% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 1.12%H | 1.21% | 1.27% | 1.38% | 1.39% | 1.48% |
| Expenses net of fee waivers, if any | 1.12%H | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% |
| Expenses net of all reductions | 1.09%H | 1.18% | 1.17% | 1.20% | 1.14% | 1.16% |
| Net investment income (loss) | .53%H | .59% | .55% | .67% | .83% | .98% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $357,799 | $169,594 | $72,421 | $18,449 | $7,768 | $4,568 |
| Portfolio turnover rateI | 180%H | 167% | 176% | 197% | 138% | 142% |
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 $.115 and distributions from net realized gain of $.005 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.
Financial Highlights — Fidelity Advisor International Capital Appreciation Fund Class Z
| | Six months ended (Unaudited) April 30, |
| | 2017 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $16.22 |
| Income from Investment Operations | |
| Net investment income (loss)B | .10 |
| Net realized and unrealized gain (loss) | 1.63 |
| Total from investment operations | 1.73 |
| Distributions from net investment income | – |
| Distributions from net realized gain | – |
| Total distributions | – |
| Redemption fees added to paid in capitalB,C | – |
| Net asset value, end of period | $17.95 |
| Total ReturnD,E | 10.67% |
| Ratios to Average Net AssetsF,G | |
| Expenses before reductions | 1.07%H |
| Expenses net of fee waivers, if any | 1.05%H |
| Expenses net of all reductions | 1.02%H |
| Net investment income (loss) | 2.55%H |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $11,042 |
| Portfolio turnover rateI | 180%H |
A For the period February 1, 2017 (commencement of sale of shares) to April 30, 2017.
B Calculated based on average shares outstanding during the period.
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. 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.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2017
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 commenced sale of Class Z shares on February 1, 2017. The Fund offers Class A, Class M (formerly Class T), Class C, Class I and Class Z 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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All prior fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
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 Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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 Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. 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, 2017, 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. 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. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain 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 foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), expiring capital loss carryforwards, 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 | $72,932,547 |
| Gross unrealized depreciation | (2,967,396) |
| Net unrealized appreciation (depreciation) on securities | $69,965,151 |
| Tax cost | $541,299,524 |
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 | $(23,967,872) |
| No expiration | |
| Short-term | (3,524,660) |
| Total capital loss carryforward | $(27,492,532) |
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. In November 2016, the Board of Trustees approved the elimination of these redemption fees effective December 12, 2016.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $557,381,887 and $421,396,832, 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 .79% 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% | $151,791 | $7,149 |
| Class M | .25% | .25% | 154,498 | 1,417 |
| Class C | .75% | .25% | 223,944 | 68,606 |
| | | | $530,233 | $77,172 |
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 M 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 M, and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $30,997 |
| Class M | 4,569 |
| Class C(a) | 2,951 |
| | $38,517 |
(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 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 applicable class were as follows:
| | Amount | % of
Class-Level Average
Net Assets(a) |
| Class A | $134,580 | .22 |
| Class M | 72,437 | .23 |
| Class C | 53,265 | .24 |
| Class I | 222,713 | .18 |
| Class Z | 197 | .05 |
| | $483,192 | |
(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 $3,137 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 | $6,374,000 | 1.09% | $192 |
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 $748 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 $47,231. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
The investment adviser contractually agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. This reimbursement will remain in place through December 31, 2018. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following class was in reimbursement during the period:
| | Expense
Limitations | Reimbursement |
| Class Z | 1.05% | $99 |
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 $83,056 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 expenses by $53.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $1,913.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2017 | Year ended October 31, 2016 |
| From net investment income | | |
| Class A | $139,469 | $45,965 |
| Class I | 730,161 | 191,914 |
| Total | $869,630 | $237,879 |
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, 2017(a) | Year ended October 31, 2016 | Six months ended
April 30, 2017(a) | Year ended October 31, 2016 |
| Class A | | | | |
| Shares sold | 2,352,593 | 4,095,510 | $35,694,186 | $63,002,207 |
| Reinvestment of distributions | 9,091 | 2,811 | 132,363 | 43,093 |
| Shares redeemed | (3,973,111) | (1,626,397) | (60,953,999) | (24,751,730) |
| Net increase (decrease) | (1,611,427) | 2,471,924 | $(25,127,450) | $38,293,570 |
| Class M | | | | |
| Shares sold | 408,794 | 1,069,249 | $6,085,789 | $15,880,617 |
| Shares redeemed | (523,813) | (891,336) | (7,755,860) | (13,215,276) |
| Net increase (decrease) | (115,019) | 177,913 | $(1,670,071) | $2,665,341 |
| Class B | | | | |
| Shares sold | – | 3,366 | $– | $43,844 |
| Shares redeemed | – | (80,538) | – | (1,078,498) |
| Net increase (decrease) | – | (77,172) | $– | $(1,034,654) |
| Class C | | | | |
| Shares sold | 973,940 | 1,105,103 | $13,381,421 | $15,192,809 |
| Shares redeemed | (446,296) | (672,432) | (6,000,308) | (9,064,572) |
| Net increase (decrease) | 527,644 | 432,671 | $7,381,113 | $6,128,237 |
| Class I | | | | |
| Shares sold | 13,331,892 | 8,832,886 | $217,747,167 | $145,687,165 |
| Reinvestment of distributions | 38,510 | 8,426 | 597,293 | 137,601 |
| Shares redeemed | (3,834,375) | (2,884,117) | (62,404,805) | (45,318,901) |
| Net increase (decrease) | 9,536,027 | 5,957,195 | $155,939,655 | $100,505,865 |
| Class Z | | | | |
| Shares sold | 615,602 | – | $10,655,997 | $– |
| Shares redeemed | (392) | – | (6,959) | – |
| Net increase (decrease) | 615,210 | – | $10,649,038 | $– |
(a) Share transactions for Class Z are for the period February 1, 2017 (commencement of sale of shares) to April 30, 2017.
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 actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2016 to April 30, 2017) for Class A, Class M, Class C, and Class I and for the period (February 1, 2017 to April 30, 2017) for Class Z. The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (November 1, 2016 to April 30, 2017).
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 | Ending
Account Value
April 30, 2017 | Expenses Paid
During Period
|
| Class A | 1.42% | | | |
| Actual | | $1,000.00 | $1,103.40 | $7.41-B |
| Hypothetical-C | | $1,000.00 | $1,017.75 | $7.10-D |
| Class M | 1.68% | | | |
| Actual | | $1,000.00 | $1,101.90 | $8.76-B |
| Hypothetical-C | | $1,000.00 | $1,016.46 | $8.40-D |
| Class C | 2.18% | | | |
| Actual | | $1,000.00 | $1,099.20 | $11.35-B |
| Hypothetical-C | | $1,000.00 | $1,013.98 | $10.89-D |
| Class I | 1.12% | | | |
| Actual | | $1,000.00 | $1,104.70 | $5.84-B |
| Hypothetical-C | | $1,000.00 | $1,019.24 | $5.61-D |
| Class Z | 1.05% | | | |
| Actual | | $1,000.00 | $1,106.70 | $2.70-B |
| Hypothetical-C | | $1,000.00 | $1,019.59 | $5.26-D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Actual expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period) for Class A, Class M, Class C and Class I and multiplied by 89/365 (to reflect the period February 1, 2017 to April 30, 2017) for Class Z.
C 5% return per year before expenses
D Hypothetical expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
AICAP-SANN-0617
1.703428.119
Fidelity Advisor® Global Capital Appreciation Fund
Class A, Class M (formerly Class T), Class C and Class I
Semi-Annual Report April 30, 2017 |
|
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. © 2017 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.institutional.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, 2017
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Bank of America Corp. (United States of America, Banks) | 1.3 | 0.4 |
| Alphabet, Inc. Class A (United States of America, Internet Software & Services) | 1.2 | 2.1 |
| Roche Holding AG (participation certificate) (Switzerland, Pharmaceuticals) | 1.2 | 0.0 |
| Wells Fargo & Co. (United States of America, Banks) | 1.1 | 0.0 |
| Sanofi SA (France, Pharmaceuticals) | 1.0 | 0.6 |
| | 5.8 | |
Top Five Market Sectors as of April 30, 2017
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Information Technology | 21.0 | 25.1 |
| Health Care | 17.7 | 16.1 |
| Financials | 17.7 | 11.9 |
| Consumer Discretionary | 12.2 | 11.0 |
| Industrials | 11.9 | 15.4 |
Top Five Countries as of April 30, 2017
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| United States of America | 44.5 | 44.9 |
| United Kingdom | 7.5 | 3.3 |
| Japan | 4.5 | 4.5 |
| India | 4.2 | 4.2 |
| Cayman Islands | 3.4 | 2.8 |
Percentages are adjusted for the effect of futures contracts, if applicable.
Asset Allocation (% of fund's net assets)
| As of April 30, 2017 |
| | Stocks | 99.3% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 0.7% |
| As of October 31, 2016 |
| | Stocks | 97.3% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 2.7% |
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments April 30, 2017 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 98.9% | | | |
| | | Shares | Value |
| Australia - 0.4% | | | |
| Beacon Lighting Group Ltd. | | 195,795 | $263,900 |
| Corporate Travel Management Ltd. | | 18,017 | 274,679 |
| Imdex Ltd. (a) | | 123,163 | 57,179 |
|
| TOTAL AUSTRALIA | | | 595,758 |
|
| Austria - 0.4% | | | |
| CA Immobilien Anlagen AG | | 20,200 | 442,608 |
| IMMOFINANZ Immobilien Anlagen AG | | 46,100 | 95,914 |
|
| TOTAL AUSTRIA | | | 538,522 |
|
| Bailiwick of Jersey - 0.3% | | | |
| WNS Holdings Ltd. sponsored ADR (a) | | 11,600 | 371,432 |
| Bermuda - 1.9% | | | |
| Beijing Enterprises Water Group Ltd. | | 442,000 | 338,673 |
| BW LPG Ltd. | | 6,900 | 30,385 |
| Credicorp Ltd. (United States) | | 1,000 | 153,660 |
| Essent Group Ltd. (a) | | 25,400 | 940,054 |
| Genpact Ltd. | | 14,000 | 341,880 |
| Great Eagle Holdings Ltd. | | 29,190 | 144,855 |
| Tai Cheung Holdings Ltd. | | 483,000 | 454,539 |
| Tai Fook Securities Group Ltd. | | 599,000 | 324,976 |
|
| TOTAL BERMUDA | | | 2,729,022 |
|
| Brazil - 1.5% | | | |
| BR Malls Participacoes SA | | 58,200 | 257,624 |
| BTG Pactual Participations Ltd. unit | | 27,800 | 162,821 |
| Construtora Tenda SA (a) | | 13,592 | 34,815 |
| Construtora Tenda SA rights (a) | | 15,740 | 40,316 |
| CVC Brasil Operadora e Agencia de Viagens SA | | 26,100 | 254,582 |
| Direcional Engenharia SA | | 57,600 | 110,698 |
| Fleury SA | | 15,400 | 254,819 |
| Gafisa SA | | 13,592 | 77,894 |
| M. Dias Branco SA | | 30,600 | 469,790 |
| MRV Engenharia e Participacoes SA | | 56,500 | 283,742 |
| Natura Cosmeticos SA | | 3,700 | 35,263 |
| Sul America SA unit | | 29,364 | 155,329 |
|
| TOTAL BRAZIL | | | 2,137,693 |
|
| Canada - 2.4% | | | |
| Air Canada (a) | | 14,900 | 141,790 |
| Constellation Software, Inc. | | 700 | 320,158 |
| Gluskin Sheff + Associates, Inc. | | 14,900 | 185,343 |
| Lions Gate Entertainment Corp.: | | | |
| Class A | | 3,750 | 98,138 |
| Class B (a) | | 3,750 | 89,438 |
| Open Text Corp. | | 7,300 | 253,111 |
| Pason Systems, Inc. | | 4,300 | 63,852 |
| People Corp. (a) | | 150,000 | 582,396 |
| PrairieSky Royalty Ltd. | | 15,800 | 344,346 |
| Premium Brands Holdings Corp. | | 10,400 | 650,948 |
| Suncor Energy, Inc. | | 18,500 | 579,781 |
| Tahoe Resources, Inc. | | 17,100 | 138,549 |
|
| TOTAL CANADA | | | 3,447,850 |
|
| Cayman Islands - 3.4% | | | |
| Airtac International Group | | 23,000 | 262,548 |
| China Medical System Holdings Ltd. | | 196,000 | 338,663 |
| ChinaSoft International Ltd. | | 628,000 | 377,849 |
| Geely Automobile Holdings Ltd. | | 180,000 | 242,982 |
| Greatview Aseptic Pack Co. Ltd. | | 190,000 | 98,440 |
| Kingsoft Corp. Ltd. | | 127,000 | 362,468 |
| Minth Group Ltd. | | 84,000 | 312,097 |
| New Oriental Education & Technology Group, Inc. sponsored ADR (a) | | 8,800 | 567,952 |
| Nexteer Auto Group Ltd. | | 237,000 | 369,287 |
| Silergy Corp. | | 25,000 | 451,643 |
| Sunny Optical Technology Group Co. Ltd. | | 43,000 | 353,803 |
| Theravance Biopharma, Inc. (a) | | 9,900 | 399,267 |
| Tongda Group Holdings Ltd. | | 820,000 | 322,588 |
| Xinyi Glass Holdings Ltd. | | 318,000 | 282,091 |
|
| TOTAL CAYMAN ISLANDS | | | 4,741,678 |
|
| China - 2.3% | | | |
| Air China Ltd. (H Shares) | | 412,000 | 364,946 |
| Bank of China Ltd. (H Shares) | | 946,000 | 458,506 |
| Beijing Urban Consolidated & Development Group Ltd. (H Shares) | | 400,000 | 243,754 |
| China Construction Bank Corp. (H Shares) | | 833,000 | 676,822 |
| Guangzhou Automobile Group Co. Ltd. (H Shares) | | 158,000 | 245,785 |
| Huaneng Renewables Corp. Ltd. (H Shares) | | 616,000 | 215,408 |
| Industrial & Commercial Bank of China Ltd. (H Shares) | | 1,010,000 | 659,626 |
| Kweichow Moutai Co. Ltd. (A Shares) | | 6,781 | 406,732 |
|
| TOTAL CHINA | | | 3,271,579 |
|
| Colombia - 0.2% | | | |
| Interconexion Electrica SA ESP | | 67,745 | 268,493 |
| France - 3.3% | | | |
| bioMerieux SA | | 1,700 | 339,900 |
| Compagnie Plastic Omnium | | 9,400 | 367,698 |
| Criteo SA sponsored ADR (a) | | 200 | 10,878 |
| Danone SA | | 2,400 | 167,966 |
| Ipsen SA | | 5,000 | 581,959 |
| Kering SA | | 900 | 278,964 |
| Maisons du Monde SA | | 6,600 | 229,054 |
| Sanofi SA | | 15,810 | 1,493,948 |
| SEB SA | | 2,300 | 370,798 |
| SR Teleperformance SA | | 3,600 | 452,343 |
| Valeo SA | | 5,300 | 381,037 |
|
| TOTAL FRANCE | | | 4,674,545 |
|
| Germany - 3.0% | | | |
| BAUER AG | | 14,200 | 249,500 |
| Bayer AG | | 7,300 | 903,252 |
| Deutsche Borse AG | | 10,800 | 1,057,035 |
| GEA Group AG | | 12,394 | 527,071 |
| Infineon Technologies AG | | 19,500 | 403,057 |
| KION Group AG | | 8,400 | 569,046 |
| MLP AG | | 22,600 | 142,465 |
| Wirecard AG (b) | | 6,400 | 377,926 |
|
| TOTAL GERMANY | | | 4,229,352 |
|
| Greece - 0.4% | | | |
| Motor Oil (HELLAS) Corinth Refineries SA | | 21,300 | 361,257 |
| Mytilineos Holdings SA (a) | | 23,600 | 177,639 |
|
| TOTAL GREECE | | | 538,896 |
|
| Hong Kong - 0.5% | | | |
| CSPC Pharmaceutical Group Ltd. | | 208,000 | 288,802 |
| Sino Land Ltd. | | 216,705 | 367,195 |
|
| TOTAL HONG KONG | | | 655,997 |
|
| India - 4.2% | | | |
| AIA Engineering Ltd. (a) | | 11,834 | 277,397 |
| Alkem Laboratories Ltd. | | 8,703 | 266,870 |
| Bajaj Finserv Ltd. (a) | | 4,605 | 327,747 |
| Bharat Heavy Electricals Ltd. | | 67,187 | 183,617 |
| Can Finance Homes Ltd. | | 8,382 | 341,232 |
| Dewan Housing Finance Corp. Ltd. (a) | | 64,843 | 430,421 |
| Gujarat Gas Ltd. (a) | | 22,748 | 298,866 |
| HDFC Bank Ltd. | | 11,042 | 269,556 |
| Indiabulls Housing Finance Ltd. | | 25,609 | 405,087 |
| Indraprastha Gas Ltd. | | 10,490 | 172,582 |
| JSW Steel Ltd. (a) | | 88,315 | 273,366 |
| Motherson Sumi Systems Ltd. | | 57,205 | 357,031 |
| Natco Pharma Ltd. | | 20,726 | 297,866 |
| Petronet LNG Ltd. | | 52,447 | 345,690 |
| Power Grid Corp. of India Ltd. | | 77,505 | 250,755 |
| Reliance Industries Ltd. | | 38,283 | 830,805 |
| UPL Ltd. (a) | | 20,958 | 262,798 |
| Yes Bank Ltd. (a) | | 12,255 | 310,759 |
|
| TOTAL INDIA | | | 5,902,445 |
|
| Indonesia - 0.7% | | | |
| PT Bank Bukopin Tbk | | 3,038,400 | 143,611 |
| PT Bank Negara Indonesia (Persero) Tbk | | 551,900 | 263,963 |
| PT Bank Rakyat Indonesia Tbk | | 212,300 | 205,467 |
| PT Bank Tabungan Negara Tbk | | 1,606,000 | 277,125 |
| PT Sumber Alfaria Trijaya Tbk | | 3,980,400 | 170,217 |
|
| TOTAL INDONESIA | | | 1,060,383 |
|
| Ireland - 2.6% | | | |
| Adient PLC | | 401 | 29,498 |
| Allergan PLC | | 5,600 | 1,365,616 |
| C&C Group PLC | | 117,200 | 483,471 |
| Jazz Pharmaceuticals PLC (a) | | 6,100 | 971,608 |
| Kerry Group PLC Class A | | 1,200 | 98,063 |
| Medtronic PLC | | 8,900 | 739,501 |
|
| TOTAL IRELAND | | | 3,687,757 |
|
| Israel - 0.5% | | | |
| Ituran Location & Control Ltd. | | 8,100 | 253,530 |
| SodaStream International Ltd. (a) | | 8,400 | 456,876 |
|
| TOTAL ISRAEL | | | 710,406 |
|
| Italy - 1.4% | | | |
| Amplifon SpA | | 29,600 | 377,569 |
| Immobiliare Grande Distribuzione SpA | | 205,800 | 184,274 |
| Mediaset SpA | | 34,100 | 139,443 |
| Moncler SpA | | 16,200 | 399,873 |
| Recordati SpA | | 10,400 | 385,290 |
| Technogym SpA | | 59,600 | 464,519 |
|
| TOTAL ITALY | | | 1,950,968 |
|
| Japan - 4.5% | | | |
| Astellas Pharma, Inc. | | 67,500 | 890,130 |
| Bank of Kyoto Ltd. | | 44,000 | 348,132 |
| Benefit One, Inc. | | 5,500 | 167,997 |
| Broadleaf Co. Ltd. | | 36,200 | 234,784 |
| en-japan, Inc. | | 16,100 | 357,746 |
| FJ Next Co. Ltd. | | 41,000 | 349,773 |
| Hirata Corp. | | 4,100 | 323,660 |
| Hokuriku Electrical Construction Co. Ltd. | | 30,300 | 235,387 |
| JK Holdings Co. Ltd. | | 16,200 | 96,641 |
| Koshidaka Holdings Co. Ltd. | | 15,200 | 375,381 |
| Monex Group, Inc. | | 148,300 | 371,166 |
| NOF Corp. | | 60,000 | 676,026 |
| Recruit Holdings Co. Ltd. | | 3,600 | 181,817 |
| Sakai Heavy Industries Ltd. | | 36,000 | 98,820 |
| Sanei Architecture Planning Co. Ltd. | | 700 | 9,608 |
| Seikitokyu Kogyo Co. Ltd. | | 67,600 | 363,848 |
| Start Today Co. Ltd. | | 16,900 | 360,816 |
| Suzuki Motor Corp. | | 11,400 | 475,737 |
| Tokyo Electron Ltd. | | 2,500 | 290,760 |
| Zenkoku Hosho Co. Ltd. | | 5,400 | 195,219 |
|
| TOTAL JAPAN | | | 6,403,448 |
|
| Kenya - 0.2% | | | |
| Safaricom Ltd. | | 1,529,100 | 285,225 |
| Korea (South) - 1.8% | | | |
| Advanced Process Systems Corp. (a) | | 5,936 | 271,858 |
| Hyundai Fire & Marine Insurance Co. Ltd. | | 15,267 | 492,527 |
| Koh Young Technology, Inc. | | 6,801 | 321,039 |
| Samsung Electronics Co. Ltd. | | 487 | 955,078 |
| SFA Engineering Corp. | | 3,820 | 262,591 |
| SK Materials Co., Ltd. | | 1,601 | 248,256 |
|
| TOTAL KOREA (SOUTH) | | | 2,551,349 |
|
| Luxembourg - 0.6% | | | |
| Aperam | | 6,500 | 327,258 |
| Stabilus SA | | 8,100 | 586,663 |
|
| TOTAL LUXEMBOURG | | | 913,921 |
|
| Malaysia - 0.1% | | | |
| Press Metal Bhd | | 314,500 | 212,275 |
| Mexico - 0.2% | | | |
| CEMEX S.A.B. de CV unit | | 274,700 | 252,735 |
| Netherlands - 1.8% | | | |
| Heijmans NV (Certificaten Van Aandelen) (a)(b) | | 19,200 | 147,929 |
| Koninklijke Philips Electronics NV | | 33,900 | 1,170,651 |
| LyondellBasell Industries NV Class A | | 13,300 | 1,127,308 |
| Nsi NV (b) | | 35,061 | 148,032 |
|
| TOTAL NETHERLANDS | | | 2,593,920 |
|
| New Zealand - 0.3% | | | |
| Ryman Healthcare Group Ltd. | | 16,616 | 98,456 |
| The a2 Milk Co. Ltd. (a) | | 131,616 | 305,442 |
|
| TOTAL NEW ZEALAND | | | 403,898 |
|
| Norway - 0.3% | | | |
| Borregaard ASA | | 32,400 | 364,151 |
| Epic Gas Ltd. (a) | | 5,100 | 8,910 |
|
| TOTAL NORWAY | | | 373,061 |
|
| Panama - 0.5% | | | |
| Copa Holdings SA Class A | | 5,900 | 686,878 |
| Philippines - 0.3% | | | |
| D&L Industries, Inc. | | 581,000 | 148,287 |
| Semirara Mining & Power Corp. | | 91,330 | 271,341 |
|
| TOTAL PHILIPPINES | | | 419,628 |
|
| Poland - 0.1% | | | |
| NG2 SA | | 2,900 | 167,756 |
| Singapore - 0.8% | | | |
| China Aviation Oil Singapore Corp. Ltd. (a) | | 290,500 | 336,836 |
| Wing Tai Holdings Ltd. | | 551,800 | 746,450 |
|
| TOTAL SINGAPORE | | | 1,083,286 |
|
| South Africa - 0.9% | | | |
| Advtech Ltd. | | 210,400 | 300,712 |
| KAP Industrial Holdings Ltd. | | 374,700 | 262,721 |
| Naspers Ltd. Class N | | 3,400 | 646,515 |
|
| TOTAL SOUTH AFRICA | | | 1,209,948 |
|
| Sweden - 0.3% | | | |
| Evolution Gaming Group AB | | 8,700 | 384,056 |
| Switzerland - 2.1% | | | |
| Chubb Ltd. | | 2,700 | 370,575 |
| EDAG Engineering Group AG | | 10,100 | 186,428 |
| Komax Holding AG (Reg.) | | 1,149 | 306,592 |
| Roche Holding AG (participation certificate) | | 6,265 | 1,639,328 |
| Temenos Group AG | | 4,650 | 402,611 |
|
| TOTAL SWITZERLAND | | | 2,905,534 |
|
| Taiwan - 2.0% | | | |
| Accton Technology Corp. | | 127,000 | 287,844 |
| ASMedia Technology, Inc. | | 20,000 | 207,127 |
| Chroma ATE, Inc. | | 142,000 | 443,530 |
| Largan Precision Co. Ltd. | | 4,000 | 663,733 |
| Powertech Technology, Inc. | | 87,000 | 272,604 |
| Taiwan Semiconductor Manufacturing Co. Ltd. | | 140,000 | 900,314 |
|
| TOTAL TAIWAN | | | 2,775,152 |
|
| Thailand - 0.1% | | | |
| Kasikornbank PCL (For. Reg.) | | 16,500 | 88,223 |
| MC Group PCL | | 11,400 | 6,095 |
|
| TOTAL THAILAND | | | 94,318 |
|
| Turkey - 0.6% | | | |
| Selcuk Ecza Deposu Tic A/S | | 226,000 | 230,330 |
| Soda Sanayii AS | | 206,000 | 371,756 |
| Turkiye Halk Bankasi A/S | | 45,000 | 149,242 |
| Turkiye Is Bankasi A/S Series C | | 83,000 | 163,806 |
|
| TOTAL TURKEY | | | 915,134 |
|
| United Kingdom - 7.5% | | | |
| Aggreko PLC | | 15,100 | 173,573 |
| Alliance Pharma PLC | | 567,026 | 348,846 |
| AstraZeneca PLC (United Kingdom) | | 10,605 | 635,127 |
| Booker Group PLC | | 140,300 | 352,530 |
| CVS Group PLC | | 25,100 | 427,500 |
| Direct Line Insurance Group PLC | | 86,100 | 389,416 |
| Ensco PLC Class A | | 73,900 | 583,071 |
| GW Pharmaceuticals PLC ADR (a) | | 800 | 94,984 |
| John David Group PLC | | 61,200 | 352,735 |
| Just Eat Holding Ltd. (a) | | 46,200 | 345,267 |
| Lloyds Banking Group PLC | | 833,400 | 748,832 |
| Metro Bank PLC (a) | | 2,200 | 100,557 |
| Micro Focus International PLC | | 32,700 | 1,096,097 |
| Moneysupermarket.com Group PLC | | 38,900 | 174,276 |
| NMC Health PLC | | 18,800 | 483,830 |
| Rentokil Initial PLC | | 111,300 | 358,948 |
| Safestore Holdings PLC | | 95,058 | 498,632 |
| Senior Engineering Group PLC | | 134,200 | 372,661 |
| Smart Metering Systems PLC (b) | | 45,900 | 328,162 |
| Smiths Group PLC | | 51,400 | 1,091,802 |
| Spire Healthcare Group PLC | | 156,709 | 685,834 |
| Tesco PLC (a) | | 177,400 | 421,008 |
| U & I Group PLC | | 26,800 | 65,952 |
| Volution Group PLC | | 144,900 | 367,842 |
| Zpg PLC | | 27,500 | 131,787 |
|
| TOTAL UNITED KINGDOM | | | 10,629,269 |
|
| United States of America - 44.5% | | | |
| Abbott Laboratories | | 16,500 | 720,060 |
| Abraxas Petroleum Corp. (a) | | 222,200 | 415,514 |
| Achaogen, Inc. (a) | | 3,200 | 77,056 |
| Adobe Systems, Inc. (a) | | 1,100 | 147,114 |
| Aetna, Inc. | | 4,600 | 621,322 |
| Affiliated Managers Group, Inc. | | 2,100 | 347,739 |
| Air Lease Corp. Class A | | 4,100 | 156,374 |
| Akamai Technologies, Inc. (a) | | 6,100 | 371,734 |
| Alamo Group, Inc. | | 1,600 | 126,496 |
| Albemarle Corp. U.S. | | 6,400 | 697,024 |
| Alexion Pharmaceuticals, Inc. (a) | | 5,600 | 715,568 |
| Alphabet, Inc.: | | | |
| Class A (a) | | 1,800 | 1,664,136 |
| Class C (a) | | 1,359 | 1,231,200 |
| AMAG Pharmaceuticals, Inc. (a) | | 6,600 | 161,040 |
| American International Group, Inc. | | 6,800 | 414,188 |
| Amgen, Inc. | | 8,800 | 1,437,216 |
| Anadarko Petroleum Corp. | | 4,300 | 245,186 |
| Apache Corp. | | 8,100 | 393,984 |
| Apple, Inc. | | 9,600 | 1,379,040 |
| Applied Materials, Inc. | | 10,600 | 430,466 |
| Argan, Inc. | | 1,100 | 73,535 |
| Arista Networks, Inc. (a) | | 1,300 | 181,532 |
| Avexis, Inc. (a) | | 7,600 | 611,800 |
| Avnet, Inc. | | 5,400 | 208,926 |
| Baker Hughes, Inc. | | 4,300 | 255,291 |
| Bank of America Corp. | | 79,800 | 1,862,522 |
| Bank of New York Mellon Corp. | | 10,700 | 503,542 |
| Bank of the Ozarks, Inc. | | 1,800 | 85,446 |
| Bankwell Financial Group, Inc. | | 2,900 | 104,806 |
| Belden, Inc. | | 7,500 | 522,750 |
| BioMarin Pharmaceutical, Inc. (a) | | 2,300 | 220,432 |
| Bioverativ, Inc. | | 1,500 | 88,215 |
| Bojangles', Inc. (a) | | 20,100 | 441,195 |
| Calpine Corp. (a) | | 96,200 | 981,240 |
| Capital One Financial Corp. | | 8,400 | 675,192 |
| Catalent, Inc. (a) | | 20,100 | 588,528 |
| CDK Global, Inc. | | 3,500 | 227,535 |
| CDW Corp. | | 4,100 | 242,269 |
| CF Industries Holdings, Inc. | | 11,800 | 315,532 |
| China Biologic Products, Inc. (a) | | 1,900 | 224,200 |
| Cigna Corp. | | 7,500 | 1,172,775 |
| CIT Group, Inc. | | 22,800 | 1,055,868 |
| Citigroup, Inc. | | 18,000 | 1,064,160 |
| Cognizant Technology Solutions Corp. Class A (a) | | 4,900 | 295,127 |
| Coherent, Inc. (a) | | 1,000 | 215,600 |
| Colfax Corp. (a) | | 9,600 | 388,512 |
| Cree, Inc. (a) | | 10,300 | 225,364 |
| CSRA, Inc. | | 15,900 | 462,372 |
| Cummins, Inc. | | 1,500 | 226,410 |
| Del Taco Restaurants, Inc. (a) | | 24,800 | 326,120 |
| DineEquity, Inc. | | 13,200 | 746,328 |
| Discover Financial Services | | 3,800 | 237,842 |
| Dun & Bradstreet Corp. | | 3,400 | 372,674 |
| Eastman Chemical Co. | | 8,300 | 661,925 |
| Electronic Arts, Inc. (a) | | 11,000 | 1,043,020 |
| Facebook, Inc. Class A (a) | | 8,000 | 1,202,000 |
| Fair Isaac Corp. | | 3,600 | 487,728 |
| FCB Financial Holdings, Inc. Class A (a) | | 2,000 | 94,500 |
| Federated National Holding Co. | | 5,500 | 88,440 |
| FedEx Corp. | | 6,200 | 1,176,140 |
| First Republic Bank | | 8,600 | 795,156 |
| FleetCor Technologies, Inc. (a) | | 3,700 | 522,218 |
| G-III Apparel Group Ltd. (a) | | 15,500 | 367,350 |
| Goldman Sachs Group, Inc. | | 4,200 | 939,960 |
| Graphic Packaging Holding Co. | | 19,500 | 264,810 |
| Great Southern Bancorp, Inc. | | 1,900 | 95,285 |
| H.B. Fuller Co. | | 4,700 | 248,301 |
| Halliburton Co. | | 10,100 | 463,388 |
| HD Supply Holdings, Inc. (a) | | 6,300 | 253,890 |
| Heartland Financial U.S.A., Inc. | | 1,900 | 91,200 |
| Hill-Rom Holdings, Inc. | | 2,800 | 211,792 |
| Hostess Brands, Inc. Class A (a) | | 40,900 | 701,026 |
| Houghton Mifflin Harcourt Co. (a) | | 6,500 | 74,750 |
| Humana, Inc. | | 1,700 | 377,366 |
| Huntington Bancshares, Inc. | | 1,507 | 19,380 |
| Inphi Corp. (a)(b) | | 5,100 | 211,242 |
| Intercept Pharmaceuticals, Inc. (a) | | 300 | 33,705 |
| iRobot Corp. (a)(b) | | 8,900 | 709,686 |
| Ironwood Pharmaceuticals, Inc. Class A (a) | | 5,400 | 88,128 |
| Jabil Circuit, Inc. | | 35,300 | 1,024,406 |
| Johnson & Johnson | | 1,200 | 148,164 |
| KBR, Inc. | | 35,100 | 493,155 |
| Keysight Technologies, Inc. (a) | | 7,200 | 269,496 |
| KLA-Tencor Corp. | | 1,700 | 166,974 |
| Ladder Capital Corp. Class A | | 5,594 | 81,840 |
| Lakeland Financial Corp. | | 6,850 | 312,771 |
| Las Vegas Sands Corp. | | 2,100 | 123,879 |
| Lennox International, Inc. | | 2,000 | 330,780 |
| M&T Bank Corp. | | 1,500 | 233,115 |
| Malibu Boats, Inc. Class A (a) | | 40,500 | 933,120 |
| MasTec, Inc. (a) | | 5,700 | 251,655 |
| Matrix Service Co. (a) | | 32,200 | 378,350 |
| McKesson Corp. | | 6,200 | 857,398 |
| Microchip Technology, Inc. | | 1,759 | 132,945 |
| Micron Technology, Inc. (a) | | 12,500 | 345,875 |
| MRC Global, Inc. (a) | | 7,000 | 127,610 |
| Neurocrine Biosciences, Inc. (a) | | 2,600 | 138,840 |
| NMI Holdings, Inc. (a) | | 8,600 | 99,760 |
| NVIDIA Corp. | | 3,200 | 333,760 |
| Oaktree Capital Group LLC Class A | | 1,500 | 70,500 |
| Papa Murphy's Holdings, Inc. (a)(b) | | 9,700 | 47,336 |
| PayPal Holdings, Inc. (a) | | 26,100 | 1,245,492 |
| Pfizer, Inc. | | 10,200 | 345,984 |
| Planet Payment, Inc. (a) | | 129,964 | 541,950 |
| PRA Health Sciences, Inc. (a) | | 3,900 | 249,444 |
| Praxair, Inc. | | 1,500 | 187,470 |
| Priceline Group, Inc. (a) | | 400 | 738,728 |
| Procter & Gamble Co. | | 1,800 | 157,194 |
| PulteGroup, Inc. | | 26,200 | 593,954 |
| PVH Corp. | | 1,800 | 181,854 |
| Qualcomm, Inc. | | 21,000 | 1,128,540 |
| Radian Group, Inc. | | 14,900 | 251,512 |
| Radius Health, Inc. (a) | | 2,300 | 89,861 |
| Regal Beloit Corp. | | 6,000 | 473,100 |
| Regeneron Pharmaceuticals, Inc. (a) | | 1,200 | 466,188 |
| REGENXBIO, Inc. (a) | | 14,900 | 311,410 |
| Reinsurance Group of America, Inc. | | 1,700 | 212,568 |
| Rexnord Corp. (a) | | 7,400 | 180,560 |
| Semtech Corp. (a) | | 16,200 | 553,230 |
| SLM Corp. (a) | | 65,500 | 821,370 |
| SM Energy Co. | | 14,700 | 332,073 |
| Southern First Bancshares, Inc. (a) | | 2,900 | 97,730 |
| State National Companies, Inc. | | 6,700 | 98,289 |
| Stifel Financial Corp. (a) | | 5,100 | 249,237 |
| Tenneco, Inc. | | 3,000 | 189,090 |
| TESARO, Inc. (a) | | 400 | 59,036 |
| The AES Corp. | | 33,900 | 383,409 |
| The Chemours Co. LLC | | 25,300 | 1,019,337 |
| The Mosaic Co. | | 35,400 | 953,322 |
| TherapeuticsMD, Inc. (a) | | 9,800 | 49,980 |
| TriMas Corp. (a) | | 16,600 | 380,970 |
| Ultragenyx Pharmaceutical, Inc. (a) | | 800 | 51,512 |
| UMB Financial Corp. | | 5,300 | 384,197 |
| Umpqua Holdings Corp. | | 5,400 | 95,418 |
| UnitedHealth Group, Inc. | | 2,700 | 472,176 |
| Virtusa Corp. (a) | | 11,400 | 353,172 |
| Wabtec Corp. (b) | | 1,500 | 125,835 |
| Wells Fargo & Co. | | 29,800 | 1,604,432 |
| WESCO International, Inc. (a) | | 3,700 | 225,515 |
| Western Digital Corp. | | 5,700 | 507,699 |
| WestRock Co. | | 4,600 | 246,376 |
| World Fuel Services Corp. | | 5,200 | 191,516 |
| Wyndham Worldwide Corp. | | 3,100 | 295,461 |
| Yum China Holdings, Inc. | | 14,500 | 494,740 |
| Yum! Brands, Inc. | | 1,800 | 118,350 |
|
| TOTAL UNITED STATES OF AMERICA | | | 62,789,493 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $122,419,506) | | | 139,563,060 |
|
| Nonconvertible Preferred Stocks - 0.4% | | | |
| Brazil - 0.2% | | | |
| Banco ABC Brasil SA | | 31,197 | 175,149 |
| Banco do Estado Rio Grande do Sul SA | | 40,200 | 179,973 |
|
| TOTAL BRAZIL | | | 355,122 |
|
| Chile - 0.2% | | | |
| Sociedad Quimica y Minera de Chile SA (PN-B) | | 7,039 | 248,873 |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | | | |
| (Cost $488,490) | | | 603,995 |
| | | Principal Amount(c) | Value |
|
| Nonconvertible Bonds - 0.0% | | | |
| Canada - 0.0% | | | |
| Constellation Software, Inc. 7.9% 3/31/40 (d) | CAD | 5,600 | 4,770 |
| (Cost $4,780) | | | |
| | | Shares | Value |
|
| Money Market Funds - 1.0% | | | |
| Fidelity Cash Central Fund, 0.85% (e) | | 3,359 | 3,359 |
| Fidelity Securities Lending Cash Central Fund 0.86% (e)(f) | | 1,313,116 | 1,313,248 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $1,316,587) | | | 1,316,607 |
| TOTAL INVESTMENT PORTFOLIO - 100.3% | | | |
| (Cost $124,229,363) | | | 141,488,432 |
| NET OTHER ASSETS (LIABILITIES) - (0.3)% | | | (372,026) |
| NET ASSETS - 100% | | | $141,116,406 |
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 | $5,665 |
| Fidelity Securities Lending Cash Central Fund | 10,767 |
| Total | $16,432 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2017, 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 | $17,020,740 | $16,299,094 | $721,646 | $-- |
| Consumer Staples | 4,419,650 | 3,830,676 | 588,974 | -- |
| Energy | 6,431,576 | 6,431,576 | -- | -- |
| Financials | 24,840,602 | 23,822,214 | 1,018,388 | -- |
| Health Care | 25,040,276 | 19,478,491 | 5,561,785 | -- |
| Industrials | 16,747,434 | 15,576,783 | 1,170,651 | -- |
| Information Technology | 29,664,697 | 28,361,326 | 1,303,371 | -- |
| Materials | 9,401,354 | 9,401,354 | -- | -- |
| Real Estate | 3,406,075 | 3,406,075 | -- | -- |
| Telecommunication Services | 285,225 | 285,225 | -- | -- |
| Utilities | 2,909,426 | 2,909,426 | -- | -- |
| Corporate Bonds | 4,770 | -- | 4,770 | -- |
| Money Market Funds | 1,316,607 | 1,316,607 | -- | -- |
| Total Investments in Securities: | $141,488,432 | $131,118,847 | $10,369,585 | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | April 30, 2017 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $1,260,533) — See accompanying schedule:
Unaffiliated issuers (cost $122,912,776) | $140,171,825 | |
| Fidelity Central Funds (cost $1,316,587) | 1,316,607 | |
| Total Investments (cost $124,229,363) | | $141,488,432 |
| Foreign currency held at value (cost $324,653) | | 325,156 |
| Receivable for investments sold | | 1,473,519 |
| Receivable for fund shares sold | | 140,934 |
| Dividends receivable | | 183,669 |
| Interest receivable | | 28 |
| Distributions receivable from Fidelity Central Funds | | 2,250 |
| Prepaid expenses | | 91 |
| Receivable from investment adviser for expense reductions | | 5,341 |
| Other receivables | | 59,759 |
| Total assets | | 143,679,179 |
| Liabilities | | |
| Payable for investments purchased | $930,469 | |
| Payable for fund shares redeemed | 113,794 | |
| Accrued management fee | 90,130 | |
| Distribution and service plan fees payable | 34,242 | |
| Other affiliated payables | 27,458 | |
| Other payables and accrued expenses | 53,470 | |
| Collateral on securities loaned | 1,313,210 | |
| Total liabilities | | 2,562,773 |
| Net Assets | | $141,116,406 |
| Net Assets consist of: | | |
| Paid in capital | | $115,502,319 |
| Accumulated net investment loss | | (30,197) |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 8,407,356 |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 17,236,928 |
| Net Assets | | $141,116,406 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($36,213,787 ÷ 2,033,144 shares) | | $17.81 |
| Maximum offering price per share (100/94.25 of $17.81) | | $18.90 |
| Class M: | | |
| Net Asset Value and redemption price per share ($22,773,798 ÷ 1,331,806 shares) | | $17.10 |
| Maximum offering price per share (100/96.50 of $17.10) | | $17.72 |
| Class C: | | |
| Net Asset Value and offering price per share ($21,472,223 ÷ 1,374,621 shares)(a) | | $15.62 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($60,656,598 ÷ 3,257,019 shares) | | $18.62 |
(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, 2017 (Unaudited) |
| Investment Income | | |
| Dividends | | $1,012,257 |
| Income from Fidelity Central Funds | | 16,432 |
| Income before foreign taxes withheld | | 1,028,689 |
| Less foreign taxes withheld | | (55,903) |
| Total income | | 972,786 |
| Expenses | | |
| Management fee | | |
| Basic fee | $476,422 | |
| Performance adjustment | 41,883 | |
| Transfer agent fees | 140,817 | |
| Distribution and service plan fees | 202,761 | |
| Accounting and security lending fees | 26,710 | |
| Custodian fees and expenses | 56,166 | |
| Independent trustees' fees and expenses | 280 | |
| Registration fees | 48,062 | |
| Audit | 41,842 | |
| Legal | 2,194 | |
| Interest | 331 | |
| Miscellaneous | 549 | |
| Total expenses before reductions | 1,038,017 | |
| Expense reductions | (35,113) | 1,002,904 |
| Net investment income (loss) | | (30,118) |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | 8,873,487 | |
| Fidelity Central Funds | (484) | |
| Foreign currency transactions | (45,984) | |
| Total net realized gain (loss) | | 8,827,019 |
Change in net unrealized appreciation (depreciation) on:
Investment securities | 5,694,177 | |
| Assets and liabilities in foreign currencies | 7,794 | |
| Total change in net unrealized appreciation (depreciation) | | 5,701,971 |
| Net gain (loss) | | 14,528,990 |
| Net increase (decrease) in net assets resulting from operations | | $14,498,872 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended April 30, 2017 (Unaudited) | Year ended October 31, 2016 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $(30,118) | $(97,803) |
| Net realized gain (loss) | 8,827,019 | 1,522,123 |
| Change in net unrealized appreciation (depreciation) | 5,701,971 | 1,536,727 |
| Net increase (decrease) in net assets resulting from operations | 14,498,872 | 2,961,047 |
| Distributions to shareholders from net realized gain | (1,458,279) | (833,839) |
| Share transactions - net increase (decrease) | (9,843,620) | (10,637,172) |
| Redemption fees | 1,937 | 511 |
| Total increase (decrease) in net assets | 3,198,910 | (8,509,453) |
| Net Assets | | |
| Beginning of period | 137,917,496 | 146,426,949 |
| End of period | $141,116,406 | $137,917,496 |
| Other Information | | |
| Accumulated net investment loss end of period | $(30,197) | $(79) |
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, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $16.18 | $15.89 | $15.32 | $13.64 | $10.40 | $9.57 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | –B | –B | (.01) | .01 | .04 | .02 |
| Net realized and unrealized gain (loss) | 1.80 | .38 | .58 | 1.76 | 3.20 | .81 |
| Total from investment operations | 1.80 | .38 | .57 | 1.77 | 3.24 | .83 |
| Distributions from net investment income | – | – | – | (.02) | – | – |
| Distributions from net realized gain | (.17) | (.09) | – | (.06) | – | – |
| Total distributions | (.17) | (.09) | – | (.09)C | – | – |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $17.81 | $16.18 | $15.89 | $15.32 | $13.64 | $10.40 |
| Total ReturnD,E,F | 11.19% | 2.39% | 3.72% | 13.03% | 31.15% | 8.67% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 1.49%I | 1.55% | 1.57% | 1.62% | 1.38% | 1.43% |
| Expenses net of fee waivers, if any | 1.45%I | 1.45% | 1.45% | 1.45% | 1.38% | 1.43% |
| Expenses net of all reductions | 1.43%I | 1.44% | 1.44% | 1.45% | 1.35% | 1.40% |
| Net investment income (loss) | .01%I | (.02)% | (.07)% | .07% | .33% | .22% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $36,214 | $39,565 | $41,225 | $35,987 | $33,694 | $26,961 |
| Portfolio turnover rateJ | 175%I | 122% | 176% | 249% | 211% | 155% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C 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.
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 M
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $15.56 | $15.32 | $14.81 | $13.19 | $10.09 | $9.31 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.02) | (.04) | (.05) | (.03) | –B | –B |
| Net realized and unrealized gain (loss) | 1.73 | .37 | .56 | 1.71 | 3.10 | .78 |
| Total from investment operations | 1.71 | .33 | .51 | 1.68 | 3.10 | .78 |
| Distributions from net investment income | – | – | – | – | – | – |
| Distributions from net realized gain | (.17) | (.09) | – | (.06) | – | – |
| Total distributions | (.17) | (.09) | – | (.06) | – | – |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $17.10 | $15.56 | $15.32 | $14.81 | $13.19 | $10.09 |
| Total ReturnC,D,E | 11.06% | 2.15% | 3.44% | 12.77% | 30.72% | 8.38% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 1.79%H | 1.85% | 1.89% | 1.93% | 1.68% | 1.71% |
| Expenses net of fee waivers, if any | 1.70%H | 1.70% | 1.70% | 1.70% | 1.68% | 1.70% |
| Expenses net of all reductions | 1.68%H | 1.69% | 1.69% | 1.70% | 1.64% | 1.68% |
| Net investment income (loss) | (.26)%H | (.27)% | (.32)% | (.17)% | .04% | (.05)% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $22,774 | $21,351 | $24,017 | $20,975 | $19,193 | $15,731 |
| Portfolio turnover rateI | 175%H | 122% | 176% | 249% | 211% | 155% |
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 C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $14.26 | $14.12 | $13.72 | $12.26 | $9.41 | $8.73 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.06) | (.11) | (.12) | (.09) | (.05) | (.05) |
| Net realized and unrealized gain (loss) | 1.59 | .34 | .52 | 1.58 | 2.90 | .73 |
| Total from investment operations | 1.53 | .23 | .40 | 1.49 | 2.85 | .68 |
| Distributions from net investment income | – | – | – | – | – | – |
| Distributions from net realized gain | (.17) | (.09) | – | (.03) | – | – |
| Total distributions | (.17) | (.09) | – | (.03) | – | – |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $15.62 | $14.26 | $14.12 | $13.72 | $12.26 | $9.41 |
| Total ReturnC,D,E | 10.80% | 1.62% | 2.92% | 12.13% | 30.29% | 7.79% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 2.25%H | 2.31% | 2.34% | 2.40% | 2.16% | 2.18% |
| Expenses net of fee waivers, if any | 2.20%H | 2.20% | 2.20% | 2.20% | 2.16% | 2.18% |
| Expenses net of all reductions | 2.18%H | 2.19% | 2.19% | 2.20% | 2.13% | 2.16% |
| Net investment income (loss) | (.76)%H | (.77)% | (.82)% | (.67)% | (.45)% | (.53)% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $21,472 | $19,942 | $21,186 | $15,747 | $13,055 | $9,421 |
| Portfolio turnover rateI | 175%H | 122% | 176% | 249% | 211% | 155% |
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, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $16.90 | $16.55 | $15.92 | $14.18 | $10.78 | $9.88 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .02 | .04 | .03 | .05 | .09 | .06 |
| Net realized and unrealized gain (loss) | 1.88 | .40 | .60 | 1.82 | 3.33 | .84 |
| Total from investment operations | 1.90 | .44 | .63 | 1.87 | 3.42 | .90 |
| Distributions from net investment income | – | – | – | (.06) | (.02) | – |
| Distributions from net realized gain | (.18) | (.09) | – | (.06) | – | – |
| Total distributions | (.18) | (.09) | – | (.13)B | (.02) | – |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
| Net asset value, end of period | $18.62 | $16.90 | $16.55 | $15.92 | $14.18 | $10.78 |
| Total ReturnD,E | 11.34% | 2.66% | 3.96% | 13.27% | 31.74% | 9.11% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 1.17%H | 1.22% | 1.26% | 1.29% | 1.02% | 1.06% |
| Expenses net of fee waivers, if any | 1.17%H | 1.20% | 1.20% | 1.20% | 1.02% | 1.06% |
| Expenses net of all reductions | 1.15%H | 1.19% | 1.19% | 1.20% | .99% | 1.03% |
| Net investment income (loss) | .27%H | .23% | .18% | .33% | .69% | .59% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $60,657 | $57,060 | $59,117 | $39,159 | $30,153 | $22,548 |
| Portfolio turnover rateI | 175%H | 122% | 176% | 249% | 211% | 155% |
A Calculated based on average shares outstanding during the period.
B 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.
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, 2017
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 M (formerly 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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All prior fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
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 Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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 Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The 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 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, 2017 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. 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, 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 | $20,088,524 |
| Gross unrealized depreciation | (3,142,734) |
| Net unrealized appreciation (depreciation) on securities | $16,945,790 |
| Tax cost | $124,542,642 |
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 $117,613,529 and $126,202,289, 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 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .76% 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% | $47,365 | $276 |
| Class M | .25% | .25% | 54,132 | 141 |
| Class C | .75% | .25% | 101,264 | 9,128 |
| | | | $202,761 | $9,545 |
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $6,394 |
| Class M | 1,532 |
| Class C(a) | 271 |
| | $8,197 |
(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 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 | $43,277 | .23 |
| Class M | 29,287 | .27 |
| Class C | 23,724 | .23 |
| Class I | 44,529 | .16 |
| | $140,817 | |
(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 $1,509 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 | $3,571,000 | .84% | $331 |
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 $234 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 $10,767, including $374 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, 2017. 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% | $8,253 |
| Class M | 1.70% | 9,048 |
| Class C | 2.20% | 4,867 |
| Class I | 1.20% | – |
| | | $22,168 |
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 $12,326 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 $619.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2017 | Year ended October 31, 2016 |
| From net realized gain | | |
| Class A | $395,545 | $232,217 |
| Class M | 223,752 | 141,812 |
| Class B | – | 5,345 |
| Class C | 228,025 | 134,701 |
| Class I | 610,957 | 319,764 |
| Total | $1,458,279 | $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, 2017 | Year ended October 31, 2016 | Six months ended April 30, 2017 | Year ended October 31, 2016 |
| Class A | | | | |
| Shares sold | 191,093 | 424,077 | $3,201,421 | $6,551,819 |
| Reinvestment of distributions | 23,639 | 14,077 | 385,077 | 225,941 |
| Shares redeemed | (626,277) | (588,244) | (10,538,828) | (9,156,861) |
| Net increase (decrease) | (411,545) | (150,090) | $(6,952,330) | $(2,379,101) |
| Class M | | | | |
| Shares sold | 91,025 | 156,974 | $1,466,876 | $2,365,833 |
| Reinvestment of distributions | 14,110 | 9,033 | 220,961 | 139,646 |
| Shares redeemed | (145,291) | (361,862) | (2,322,229) | (5,311,002) |
| Net increase (decrease) | (40,156) | (195,855) | $(634,392) | $(2,805,523) |
| Class B | | | | |
| Shares sold | – | 936 | $– | $12,842 |
| Reinvestment of distributions | – | 351 | – | 5,016 |
| Shares redeemed | – | (63,564) | – | (859,607) |
| Net increase (decrease) | – | (62,277) | $– | $(841,749) |
| Class C | | | | |
| Shares sold | 115,997 | 189,268 | $1,709,431 | $2,619,454 |
| Reinvestment of distributions | 15,260 | 8,899 | 218,681 | 126,727 |
| Shares redeemed | (154,637) | (300,632) | (2,258,044) | (4,141,044) |
| Net increase (decrease) | (23,380) | (102,465) | $(329,932) | $(1,394,863) |
| Class I | | | | |
| Shares sold | 585,933 | 396,513 | $10,385,609 | $6,432,607 |
| Reinvestment of distributions | 35,233 | 18,757 | 599,659 | 313,609 |
| Shares redeemed | (739,918) | (611,800) | (12,912,234) | (9,962,152) |
| Net increase (decrease) | (118,752) | (196,530) | $(1,926,966) | $(3,215,936) |
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 13% 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, 2016 to April 30, 2017).
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, 2016 | Ending
Account Value
April 30, 2017 | Expenses Paid
During Period-B
November 1, 2016
to April 30, 2017 |
| Class A | 1.45% | | | |
| Actual | | $1,000.00 | $1,111.90 | $7.59 |
| Hypothetical-C | | $1,000.00 | $1,017.60 | $7.25 |
| Class M | 1.70% | | | |
| Actual | | $1,000.00 | $1,110.60 | $8.90 |
| Hypothetical-C | | $1,000.00 | $1,016.36 | $8.50 |
| Class C | 2.20% | | | |
| Actual | | $1,000.00 | $1,108.00 | $11.50 |
| Hypothetical-C | | $1,000.00 | $1,013.88 | $10.99 |
| Class I | 1.17% | | | |
| Actual | | $1,000.00 | $1,113.40 | $6.13 |
| Hypothetical-C | | $1,000.00 | $1,018.99 | $5.86 |
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 181/365 (to reflect the one-half year period).
C 5% return per year before expenses
AGLO-SANN-0617
1.719689.118
Fidelity Advisor® Emerging Asia Fund
Class A, Class M (formerly Class T), Class C and Class I
Semi-Annual Report April 30, 2017 |
|
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. © 2017 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.institutional.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, 2017
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Samsung Electronics Co. Ltd. | 6.3 | 5.2 |
| Tencent Holdings Ltd. | 6.3 | 5.4 |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 5.7 | 5.5 |
| Alibaba Group Holding Ltd. sponsored ADR | 4.3 | 3.9 |
| AIA Group Ltd. | 2.9 | 2.7 |
| China Construction Bank Corp. (H Shares) | 2.1 | 2.1 |
| Hon Hai Precision Industry Co. Ltd. (Foxconn) | 1.9 | 1.9 |
| Housing Development Finance Corp. Ltd. | 1.7 | 1.5 |
| Reliance Industries Ltd. | 1.6 | 1.2 |
| Kweichow Moutai Co. Ltd. (A Shares) | 1.4 | 0.9 |
| | 34.2 | |
Top Five Market Sectors as of April 30, 2017
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Information Technology | 31.5 | 26.5 |
| Financials | 17.7 | 17.6 |
| Consumer Discretionary | 9.2 | 9.8 |
| Health Care | 7.2 | 5.0 |
| Consumer Staples | 7.2 | 6.9 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2017 |
| | Stocks | 98.8% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 1.2% |
| As of October 31, 2016 |
| | Stocks | 96.9% |
| | Bonds | 0.1% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 3.0% |
Investments April 30, 2017 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 98.8% | | | |
| | | Shares | Value |
| Australia - 0.6% | | | |
| Beacon Lighting Group Ltd. | | 103,679 | $139,743 |
| SpeedCast International Ltd. | | 221,575 | 632,138 |
| Woodside Petroleum Ltd. | | 25,856 | 623,036 |
|
| TOTAL AUSTRALIA | | | 1,394,917 |
|
| Bermuda - 3.9% | | | |
| Brilliance China Automotive Holdings Ltd. | | 684,000 | 1,146,690 |
| Cheung Kong Infrastructure Holdings Ltd. | | 272,000 | 2,383,128 |
| Hongkong Land Holdings Ltd. | | 267,100 | 2,059,341 |
| Man Wah Holdings Ltd. | | 1,570,400 | 1,302,214 |
| PAX Global Technology Ltd. | | 515,000 | 319,129 |
| Tai Cheung Holdings Ltd. | | 700,000 | 658,752 |
| Vtech Holdings Ltd. | | 112,500 | 1,425,350 |
|
| TOTAL BERMUDA | | | 9,294,604 |
|
| Cayman Islands - 17.6% | | | |
| Alibaba Group Holding Ltd. sponsored ADR (a) | | 88,700 | 10,244,850 |
| China State Construction International Holdings Ltd. | | 956,000 | 1,735,422 |
| Cogobuy Group (a) | | 288,000 | 414,689 |
| Ctrip.com International Ltd. ADR (a) | | 46,700 | 2,358,817 |
| Haitian International Holdings Ltd. | | 305,000 | 747,369 |
| International Housewares Retail Co. Ltd. | | 2,759,000 | 624,276 |
| JD.com, Inc. sponsored ADR (a) | | 76,200 | 2,672,334 |
| Lee's Pharmaceutical Holdings Ltd. | | 1,068,000 | 1,059,988 |
| Longfor Properties Co. Ltd. | | 913,500 | 1,583,110 |
| NetEase, Inc. ADR | | 8,100 | 2,149,659 |
| Silergy Corp. | | 63,000 | 1,138,140 |
| SITC International Holdings Co. Ltd. | | 1,369,000 | 980,327 |
| Tencent Holdings Ltd. | | 474,200 | 14,858,269 |
| Value Partners Group Ltd. | | 905,000 | 837,710 |
| Xingda International Holdings Ltd. | | 29,000 | 11,632 |
| Xinyi Glass Holdings Ltd. | | 430,000 | 381,443 |
|
| TOTAL CAYMAN ISLANDS | | | 41,798,035 |
|
| China - 14.2% | | | |
| BBMG Corp. (H Shares) | | 1,565,000 | 839,002 |
| Beijing Jingneng Clean Energy Co. Ltd. (H Shares) | | 1,480,000 | 449,041 |
| Beijing Urban Consolidated & Development Group Ltd. (H Shares) | | 1,094,000 | 666,666 |
| China Construction Bank Corp. (H Shares) | | 6,223,000 | 5,056,260 |
| China Pacific Insurance (Group) Co. Ltd. (H Shares) | | 531,600 | 1,964,877 |
| China Telecom Corp. Ltd. (H Shares) | | 2,964,000 | 1,448,019 |
| Gree Electric Appliances, Inc. of Zhuhai Class A | | 507,100 | 2,427,548 |
| Hangzhou Hikvision Digital Technology Co. Ltd. Class A | | 453,499 | 2,405,811 |
| Huaneng Renewables Corp. Ltd. (H Shares) | | 2,148,000 | 751,131 |
| Inner Mongoli Yili Industries Co. Ltd. (A Shares) | | 436,001 | 1,154,911 |
| Jiangsu Hengrui Medicine Co. Ltd. (A Shares) | | 394,804 | 3,071,493 |
| Jiangsu Yanghe Brewery Joint-Stock Co. Ltd. Class A | | 166,910 | 1,937,013 |
| Kweichow Moutai Co. Ltd. (A Shares) | | 53,883 | 3,231,964 |
| PICC Property & Casualty Co. Ltd. (H Shares) | | 775,060 | 1,247,533 |
| Shanghai International Airport Co. Ltd. (A Shares) | | 293,000 | 1,455,755 |
| Shenzhen Expressway Co. (H Shares) | | 1,002,000 | 913,327 |
| Weifu High-Technology Co. Ltd. (B Shares) | | 332,368 | 807,595 |
| Yunnan Baiyao Group Co. Ltd. | | 189,385 | 2,348,940 |
| Zhengzhou Yutong Bus Co. Ltd. | | 480,360 | 1,403,416 |
|
| TOTAL CHINA | | | 33,580,302 |
|
| Hong Kong - 9.0% | | | |
| AIA Group Ltd. | | 979,200 | 6,779,062 |
| China Resources Beer Holdings Co. Ltd. | | 614,000 | 1,477,702 |
| CNOOC Ltd. sponsored ADR | | 11,800 | 1,370,570 |
| CSPC Pharmaceutical Group Ltd. | | 1,752,000 | 2,432,598 |
| Dah Sing Financial Holdings Ltd. | | 138,400 | 1,049,786 |
| Hysan Development Co. Ltd. | | 268,000 | 1,264,484 |
| Power Assets Holdings Ltd. | | 306,000 | 2,753,797 |
| Sino Land Ltd. | | 750,000 | 1,270,835 |
| Techtronic Industries Co. Ltd. | | 686,000 | 2,945,663 |
|
| TOTAL HONG KONG | | | 21,344,497 |
|
| India - 15.5% | | | |
| Adani Ports & Special Economic Zone Ltd. (a) | | 183,402 | 934,840 |
| Amara Raja Batteries Ltd. (a) | | 80,531 | 1,114,958 |
| Asian Paints Ltd. | | 115,523 | 2,013,342 |
| Axis Bank Ltd. | | 258,967 | 2,052,925 |
| Bajaj Corp. Ltd. | | 130,804 | 799,900 |
| Bharat Petroleum Corp. Ltd. | | 114,056 | 1,276,011 |
| Bharti Infratel Ltd. | | 247,577 | 1,365,929 |
| CCL Products (India) Ltd. (a) | | 89,864 | 477,835 |
| Gujarat Gas Ltd. (a) | | 100,016 | 1,314,023 |
| Havells India Ltd. (a) | | 227,067 | 1,709,095 |
| HCL Technologies Ltd. | | 77,895 | 986,379 |
| HDFC Bank Ltd. | | 117,996 | 2,880,504 |
| Housing Development Finance Corp. Ltd. | | 173,617 | 4,151,118 |
| Indian Oil Corp. Ltd. | | 126,541 | 866,144 |
| Indraprastha Gas Ltd. | | 101,491 | 1,669,731 |
| Petronet LNG Ltd. | | 292,574 | 1,928,422 |
| Power Grid Corp. of India Ltd. | | 334,764 | 1,083,075 |
| Redington India Ltd. | | 132,715 | 257,627 |
| Reliance Industries Ltd. | | 170,643 | 3,703,237 |
| Sterlite Optical Technologies Ltd. (a) | | 353,809 | 808,714 |
| Sun Pharmaceutical Industries Ltd. | | 241,129 | 2,407,727 |
| Torrent Pharmaceuticals Ltd. (a) | | 41,324 | 911,937 |
| UPL Ltd. (a) | | 73,986 | 927,731 |
| Vakrangee Ltd. (a) | | 141,400 | 752,528 |
| VST Industries Ltd. (a) | | 8,218 | 389,649 |
|
| TOTAL INDIA | | | 36,783,381 |
|
| Indonesia - 3.7% | | | |
| PT Bank Central Asia Tbk | | 2,354,300 | 3,135,181 |
| PT Bank Rakyat Indonesia Tbk | | 2,753,300 | 2,664,684 |
| PT Gudang Garam Tbk | | 321,800 | 1,603,085 |
| PT Indofood Sukses Makmur Tbk | | 2,002,600 | 1,258,292 |
|
| TOTAL INDONESIA | | | 8,661,242 |
|
| Israel - 0.5% | | | |
| Sarine Technologies Ltd. | | 803,000 | 1,103,504 |
| Japan - 0.9% | | | |
| KDDI Corp. | | 35,100 | 930,644 |
| Olympus Corp. | | 34,400 | 1,323,848 |
|
| TOTAL JAPAN | | | 2,254,492 |
|
| Korea (South) - 13.0% | | | |
| BGFretail Co. Ltd. | | 16,614 | 1,599,185 |
| Coway Co. Ltd. | | 12,068 | 1,066,134 |
| Hyundai Fire & Marine Insurance Co. Ltd. | | 35,189 | 1,135,229 |
| Hyundai Motor Co. | | 9,341 | 1,182,405 |
| KB Financial Group, Inc. | | 38,173 | 1,678,430 |
| KEPCO Plant Service & Engineering Co. Ltd. | | 23,559 | 1,188,719 |
| Korea Petro Chemical Industries Co. Ltd. (a) | | 2,379 | 494,579 |
| Korea Zinc Co. Ltd. | | 2,802 | 1,048,041 |
| LG Household & Health Care Ltd. | | 2,218 | 1,688,456 |
| Loen Entertainment, Inc. | | 19,869 | 1,535,237 |
| LS Industrial Systems Ltd. | | 17,747 | 792,500 |
| Medy-Tox, Inc. | | 2,902 | 1,276,002 |
| Osstem Implant Co. Ltd. (a) | | 25,066 | 1,163,401 |
| Samsung Electronics Co. Ltd. | | 7,650 | 15,002,772 |
|
| TOTAL KOREA (SOUTH) | | | 30,851,090 |
|
| Malaysia - 0.1% | | | |
| Bursa Malaysia Bhd | | 106,600 | 251,950 |
| Multi-National - 1.0% | | | |
| HKT Trust/HKT Ltd. unit | | 1,856,500 | 2,374,819 |
| Philippines - 1.0% | | | |
| Ayala Land, Inc. | | 1,483,800 | 1,044,398 |
| Robinsons Land Corp. | | 1,488,700 | 761,396 |
| Security Bank Corp. | | 116,736 | 496,259 |
|
| TOTAL PHILIPPINES | | | 2,302,053 |
|
| Singapore - 1.0% | | | |
| UOL Group Ltd. | | 273,300 | 1,416,234 |
| Wing Tai Holdings Ltd. | | 771,400 | 1,043,514 |
|
| TOTAL SINGAPORE | | | 2,459,748 |
|
| Taiwan - 13.7% | | | |
| Advanced Semiconductor Engineering, Inc. | | 1,258,104 | 1,574,054 |
| CTCI Corp. | | 565,000 | 987,063 |
| E.SUN Financial Holdings Co. Ltd. | | 2,553,122 | 1,541,689 |
| E.SUN Financial Holdings Co. Ltd. rights 5/2/17 (a) | | 152,918 | 16,444 |
| ECLAT Textile Co. Ltd. | | 79,000 | 863,895 |
| Fubon Financial Holding Co. Ltd. | | 1,102,000 | 1,724,667 |
| Hon Hai Precision Industry Co. Ltd. (Foxconn) | | 1,364,035 | 4,459,076 |
| Largan Precision Co. Ltd. | | 14,000 | 2,323,065 |
| Micro-Star International Co. Ltd. | | 522,000 | 1,044,933 |
| Nien Made Enterprise Co. Ltd. | | 171,000 | 1,728,501 |
| PChome Online, Inc. | | 78,099 | 666,696 |
| Taiwan Semiconductor Manufacturing Co. Ltd. | | 2,110,393 | 13,571,539 |
| Vanguard International Semiconductor Corp. | | 429,000 | 817,602 |
| Voltronic Power Technology Corp. | | 77,000 | 1,096,797 |
|
| TOTAL TAIWAN | | | 32,416,021 |
|
| Thailand - 2.5% | | | |
| Bangkok Bank PCL (For. Reg.) | | 222,300 | 1,201,448 |
| Delta Electronics PCL (For. Reg.) | | 118,500 | 315,087 |
| Kasikornbank PCL (For. Reg.) | | 421,200 | 2,252,081 |
| PTT Global Chemical PCL (For. Reg.) | | 400,400 | 867,919 |
| Thai Beverage PCL | | 1,933,100 | 1,279,832 |
|
| TOTAL THAILAND | | | 5,916,367 |
|
| United States of America - 0.6% | | | |
| China Biologic Products, Inc. (a) | | 12,900 | 1,522,200 |
| TOTAL COMMON STOCKS | | | |
| (Cost $171,325,045) | | | 234,309,222 |
|
| Money Market Funds - 1.1% | | | |
| Fidelity Cash Central Fund, 0.85% (b) | | | |
| (Cost $2,649,614) | | 2,649,084 | 2,649,614 |
| TOTAL INVESTMENT PORTFOLIO - 99.9% | | | |
| (Cost $173,974,659) | | | 236,958,836 |
| NET OTHER ASSETS (LIABILITIES) - 0.1% | | | 181,356 |
| NET ASSETS - 100% | | | $237,140,192 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $10,385 |
| Fidelity Securities Lending Cash Central Fund | 733 |
| Total | $11,118 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2017, 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 | $21,608,816 | $21,608,816 | $-- | $-- |
| Consumer Staples | 16,897,824 | 16,897,824 | -- | -- |
| Energy | 9,767,420 | 9,767,420 | -- | -- |
| Financials | 42,117,837 | 37,542,459 | 4,575,378 | -- |
| Health Care | 17,518,134 | 17,518,134 | -- | -- |
| Industrials | 16,829,758 | 16,829,758 | -- | -- |
| Information Technology | 75,121,280 | 45,117,418 | 30,003,862 | -- |
| Materials | 6,190,614 | 6,190,614 | -- | -- |
| Real Estate | 11,102,064 | 11,102,064 | -- | -- |
| Telecommunication Services | 6,751,549 | 5,820,905 | 930,644 | -- |
| Utilities | 10,403,926 | 10,403,926 | -- | -- |
| Money Market Funds | 2,649,614 | 2,649,614 | -- | -- |
| Total Investments in Securities: | $236,958,836 | $201,448,952 | $35,509,884 | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | April 30, 2017 (Unaudited) |
| Assets | | |
Investment in securities, at value — See accompanying schedule:
Unaffiliated issuers (cost $171,325,045) | $234,309,222 | |
| Fidelity Central Funds (cost $2,649,614) | 2,649,614 | |
| Total Investments (cost $173,974,659) | | $236,958,836 |
| Foreign currency held at value (cost $372,443) | | 372,118 |
| Receivable for investments sold | | 438,762 |
| Receivable for fund shares sold | | 324,377 |
| Dividends receivable | | 143,120 |
| Distributions receivable from Fidelity Central Funds | | 2,362 |
| Prepaid expenses | | 153 |
| Other receivables | | 176,270 |
| Total assets | | 238,415,998 |
| Liabilities | | |
| Payable for investments purchased | $309,556 | |
| Payable for fund shares redeemed | 368,786 | |
| Accrued management fee | 135,225 | |
| Distribution and service plan fees payable | 74,558 | |
| Other affiliated payables | 55,950 | |
| Other payables and accrued expenses | 331,731 | |
| Total liabilities | | 1,275,806 |
| Net Assets | | $237,140,192 |
| Net Assets consist of: | | |
| Paid in capital | | $184,829,183 |
| Accumulated net investment loss | | (261,337) |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (10,082,349) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 62,654,695 |
| Net Assets | | $237,140,192 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($118,331,840 ÷ 3,561,227 shares) | | $33.23 |
| Maximum offering price per share (100/94.25 of $33.23) | | $35.26 |
| Class M: | | |
| Net Asset Value and redemption price per share ($37,167,050 ÷ 1,150,919 shares) | | $32.29 |
| Maximum offering price per share (100/96.50 of $32.29) | | $33.46 |
| Class C: | | |
| Net Asset Value and offering price per share ($42,786,894 ÷ 1,413,305 shares)(a) | | $30.27 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($38,854,408 ÷ 1,134,552 shares) | | $34.25 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| | | Six months ended April 30, 2017 (Unaudited) |
| Investment Income | | |
| Dividends | | $1,563,876 |
| Interest | | 30 |
| Income from Fidelity Central Funds | | 11,118 |
| Income before foreign taxes withheld | | 1,575,024 |
| Less foreign taxes withheld | | (134,759) |
| Total income | | 1,440,265 |
| Expenses | | |
| Management fee | $778,256 | |
| Transfer agent fees | 278,023 | |
| Distribution and service plan fees | 432,625 | |
| Accounting and security lending fees | 57,923 | |
| Custodian fees and expenses | 99,826 | |
| Independent trustees' fees and expenses | 459 | |
| Registration fees | 54,097 | |
| Audit | 54,344 | |
| Legal | 622 | |
| Miscellaneous | 909 | |
| Total expenses before reductions | 1,757,084 | |
| Expense reductions | (71,640) | 1,685,444 |
| Net investment income (loss) | | (245,179) |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (1,262,229) | |
| Fidelity Central Funds | (488) | |
| Foreign currency transactions | 7,268 | |
| Total net realized gain (loss) | | (1,255,449) |
Change in net unrealized appreciation (depreciation) on:
Investment securities (net of increase in deferred foreign taxes of $226,273) | 24,555,518 | |
| Assets and liabilities in foreign currencies | 5,500 | |
| Total change in net unrealized appreciation (depreciation) | | 24,561,018 |
| Net gain (loss) | | 23,305,569 |
| Net increase (decrease) in net assets resulting from operations | | $23,060,390 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended April 30, 2017 (Unaudited) | Year ended October 31, 2016 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $(245,179) | $2,109,112 |
| Net realized gain (loss) | (1,255,449) | (7,685,963) |
| Change in net unrealized appreciation (depreciation) | 24,561,018 | 18,717,929 |
| Net increase (decrease) in net assets resulting from operations | 23,060,390 | 13,141,078 |
| Distributions to shareholders from net investment income | (1,607,959) | (1,665,857) |
| Distributions to shareholders from net realized gain | (514,572) | (2,157,468) |
| Total distributions | (2,122,531) | (3,823,325) |
| Share transactions - net increase (decrease) | (19,438,852) | (43,770,710) |
| Redemption fees | 21,517 | 18,916 |
| Total increase (decrease) in net assets | 1,520,524 | (34,434,041) |
| Net Assets | | |
| Beginning of period | 235,619,668 | 270,053,709 |
| End of period | $237,140,192 | $235,619,668 |
| Other Information | | |
| Undistributed net investment income end of period | $– | $1,591,801 |
| Accumulated net investment loss end of period | $(261,337) | $– |
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, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $30.26 | $28.75 | $32.05 | $31.34 | $28.87 | $28.70 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.01) | .29 | .31 | .30 | .30 | .34 |
| Net realized and unrealized gain (loss) | 3.29 | 1.67 | (1.76) | 2.00B | 2.59 | 1.37 |
| Total from investment operations | 3.28 | 1.96 | (1.45) | 2.30 | 2.89 | 1.71 |
| Distributions from net investment income | (.24) | (.22) | (.18) | (.26) | (.33) | (.31) |
| Distributions from net realized gain | (.07) | (.23) | (1.67) | (1.33) | (.09) | (1.23) |
| Total distributions | (.31) | (.45) | (1.86)C | (1.59) | (.42) | (1.54) |
| Redemption fees added to paid in capitalA | –D | –D | .01 | –D | –D | –D |
| Net asset value, end of period | $33.23 | $30.26 | $28.75 | $32.05 | $31.34 | $28.87 |
| Total ReturnE,F,G | 10.99% | 6.95% | (4.78)% | 7.70%B | 10.10% | 6.36% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.44%J | 1.42% | 1.37% | 1.42% | 1.41% | 1.42% |
| Expenses net of fee waivers, if any | 1.43%J | 1.42% | 1.37% | 1.42% | 1.41% | 1.42% |
| Expenses net of all reductions | 1.37%J | 1.42% | 1.36% | 1.42% | 1.38% | 1.38% |
| Net investment income (loss) | (.08)%J | 1.03% | 1.00% | .96% | .99% | 1.24% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $118,332 | $119,449 | $125,528 | $145,184 | $155,104 | $160,427 |
| Portfolio turnover rateK | 37%J | 75% | 70% | 91% | 95% | 95% |
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. Excluding this amount, the total return would have been 8.29%.
C Total distribution 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.
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 Emerging Asia Fund Class M
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $29.39 | $27.93 | $31.17 | $30.53 | $28.13 | $27.98 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.06) | .20 | .21 | .20 | .20 | .25 |
| Net realized and unrealized gain (loss) | 3.21 | 1.62 | (1.71) | 1.94B | 2.54 | 1.33 |
| Total from investment operations | 3.15 | 1.82 | (1.50) | 2.14 | 2.74 | 1.58 |
| Distributions from net investment income | (.18) | (.13) | (.08) | (.17) | (.25) | (.20) |
| Distributions from net realized gain | (.07) | (.23) | (1.67) | (1.33) | (.09) | (1.23) |
| Total distributions | (.25) | (.36) | (1.75) | (1.50) | (.34) | (1.43) |
| Redemption fees added to paid in capitalA | –C | –C | .01 | –C | –C | –C |
| Net asset value, end of period | $32.29 | $29.39 | $27.93 | $31.17 | $30.53 | $28.13 |
| Total ReturnD,E,F | 10.82% | 6.62% | (5.05)% | 7.34%B | 9.80% | 6.04% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 1.75%I | 1.72% | 1.68% | 1.73% | 1.70% | 1.70% |
| Expenses net of fee waivers, if any | 1.75%I | 1.72% | 1.68% | 1.73% | 1.70% | 1.70% |
| Expenses net of all reductions | 1.68%I | 1.72% | 1.67% | 1.73% | 1.67% | 1.67% |
| Net investment income (loss) | (.39)%I | .72% | .69% | .66% | .70% | .95% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $37,167 | $35,791 | $37,720 | $44,563 | $47,620 | $49,359 |
| Portfolio turnover rateJ | 37%I | 75% | 70% | 91% | 95% | 95% |
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. 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 C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $27.52 | $26.17 | $29.30 | $28.78 | $26.53 | $26.44 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.11) | .07 | .07 | .06 | .07 | .13 |
| Net realized and unrealized gain (loss) | 3.00 | 1.52 | (1.59) | 1.82B | 2.39 | 1.25 |
| Total from investment operations | 2.89 | 1.59 | (1.52) | 1.88 | 2.46 | 1.38 |
| Distributions from net investment income | (.08) | (.01) | – | (.03) | (.12) | (.06) |
| Distributions from net realized gain | (.07) | (.23) | (1.62) | (1.33) | (.09) | (1.23) |
| Total distributions | (.14)C | (.24) | (1.62) | (1.36) | (.21) | (1.29) |
| Redemption fees added to paid in capitalA | –D | –D | .01 | –D | –D | –D |
| Net asset value, end of period | $30.27 | $27.52 | $26.17 | $29.30 | $28.78 | $26.53 |
| Total ReturnE,F,G | 10.58% | 6.14% | (5.46)% | 6.85%B | 9.33% | 5.57% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 2.18%J | 2.16% | 2.11% | 2.17% | 2.16% | 2.16% |
| Expenses net of fee waivers, if any | 2.17%J | 2.16% | 2.11% | 2.17% | 2.16% | 2.16% |
| Expenses net of all reductions | 2.11%J | 2.16% | 2.10% | 2.17% | 2.12% | 2.13% |
| Net investment income (loss) | (.82)%J | .29% | .26% | .22% | .24% | .49% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $42,787 | $43,016 | $51,651 | $57,226 | $61,824 | $67,074 |
| Portfolio turnover rateK | 37%J | 75% | 70% | 91% | 95% | 95% |
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. Excluding this amount, the total return would have been 7.44%.
C Total distributions of $.14 per share is comprised of distributions from net investment income of $.076 and distributions from net realized gain of $.067 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 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 Emerging Asia Fund Class I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $31.19 | $29.63 | $33.00 | $32.24 | $29.67 | $29.49 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .03 | .39 | .41 | .40 | .40 | .44 |
| Net realized and unrealized gain (loss) | 3.40 | 1.72 | (1.81) | 2.04B | 2.68 | 1.39 |
| Total from investment operations | 3.43 | 2.11 | (1.40) | 2.44 | 3.08 | 1.83 |
| Distributions from net investment income | (.31) | (.32) | (.31) | (.35) | (.41) | (.42) |
| Distributions from net realized gain | (.07) | (.23) | (1.67) | (1.33) | (.09) | (1.23) |
| Total distributions | (.37)C | (.55) | (1.98) | (1.68) | (.51)D | (1.65) |
| Redemption fees added to paid in capitalA | –E | –E | .01 | –E | –E | –E |
| Net asset value, end of period | $34.25 | $31.19 | $29.63 | $33.00 | $32.24 | $29.67 |
| Total ReturnF,G | 11.18% | 7.27% | (4.47)% | 7.98%B | 10.47% | 6.64% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 1.13%J | 1.11% | 1.07% | 1.12% | 1.11% | 1.11% |
| Expenses net of fee waivers, if any | 1.13%J | 1.11% | 1.07% | 1.12% | 1.11% | 1.11% |
| Expenses net of all reductions | 1.07%J | 1.11% | 1.06% | 1.12% | 1.08% | 1.08% |
| Net investment income (loss) | .22%J | 1.34% | 1.30% | 1.26% | 1.29% | 1.54% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $38,854 | $37,364 | $51,569 | $48,693 | $36,310 | $40,026 |
| Portfolio turnover rateK | 37%J | 75% | 70% | 91% | 95% | 95% |
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. Excluding this amount, the total return would have been 8.57%.
C Total distributions of $.37 per share is comprised of distributions from net investment income of $.307 and distributions from net realized gain of $.067 per share.
D 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.
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, 2017
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 M (formerly 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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All prior fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
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 Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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 Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. 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, 2017, 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. 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. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain 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 investments 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 | $67,253,942 |
| Gross unrealized depreciation | (4,417,984) |
| Net unrealized appreciation (depreciation) on securities | $62,835,958 |
| Tax cost | $174,122,878 |
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.
| No expiration | |
| Short-term | $(7,920,300) |
| Long-term | (566,569) |
| Total capital loss carryforward | $(8,486,869) |
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 $40,498,929 and $56,797,124, 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% | $142,274 | $– |
| Class M | .25% | .25% | 86,771 | 406 |
| Class C | .75% | .25% | 203,580 | 6,695 |
| | | | $432,625 | $7,101 |
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $8,229 |
| Class M | 2,368 |
| Class C(a) | 331 |
| | $10,928 |
(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 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 | $141,995 | .25 |
| Class M | 53,862 | .31 |
| Class C | 48,687 | .24 |
| Class I | 33,479 | .20 |
| | $278,023 | |
(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 $71 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 $381 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 $733. 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 $70,651 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 expenses by $19.
In addition, during the period, the investment adviser reimbursed and/or waived a portion of operating expenses in the amount of $970.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2017 | Year ended October 31, 2016 |
| From net investment income | | |
| Class A | $945,543 | $942,866 |
| Class M | 215,347 | 171,419 |
| Class C | 115,038 | 15,517 |
| Class I | 332,031 | 536,055 |
| Total | $1,607,959 | $1,665,857 |
| From net realized gain | | |
| Class A | $259,636 | $985,723 |
| Class M | 81,058 | 305,631 |
| Class B | – | 29,826 |
| Class C | 101,415 | 446,122 |
| Class I | 72,463 | 390,166 |
| Total | $514,572 | $2,157,468 |
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, 2017 | Year ended October 31, 2016 | Six months ended April 30, 2017 | Year ended October 31, 2016 |
| Class A | | | | |
| Shares sold | 139,552 | 409,769 | $4,231,605 | $11,440,878 |
| Reinvestment of distributions | 37,540 | 63,044 | 1,091,284 | 1,757,042 |
| Shares redeemed | (563,459) | (891,153) | (16,972,471) | (24,755,117) |
| Net increase (decrease) | (386,367) | (418,340) | $(11,649,582) | $(11,557,197) |
| Class M | | | | |
| Shares sold | 57,862 | 83,224 | $1,704,195 | $2,281,494 |
| Reinvestment of distributions | 10,290 | 17,276 | 291,111 | 469,050 |
| Shares redeemed | (134,997) | (233,191) | (3,914,648) | (6,271,543) |
| Net increase (decrease) | (66,845) | (132,691) | $(1,919,342) | $(3,520,999) |
| Class B | | | | |
| Shares sold | – | 862 | $– | $22,474 |
| Reinvestment of distributions | – | 1,009 | – | 26,127 |
| Shares redeemed | – | (136,850) | – | (3,430,006) |
| Net increase (decrease) | – | (134,979) | $– | $(3,381,405) |
| Class C | | | | |
| Shares sold | 63,108 | 99,964 | $1,773,964 | $2,569,333 |
| Reinvestment of distributions | 7,217 | 15,928 | 191,693 | 406,480 |
| Shares redeemed | (219,932) | (526,702) | (6,059,496) | (13,175,793) |
| Net increase (decrease) | (149,607) | (410,810) | $(4,093,839) | $(10,199,980) |
| Class I | | | | |
| Shares sold | 317,634 | 339,115 | $9,982,699 | $9,694,721 |
| Reinvestment of distributions | 11,258 | 25,883 | 336,943 | 741,553 |
| Shares redeemed | (392,372) | (907,526) | (12,095,731) | (25,547,403) |
| Net increase (decrease) | (63,480) | (542,528) | $(1,776,089) | $(15,111,129) |
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, 2016 to April 30, 2017).
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.
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.
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, 2016 | Ending
Account Value
April 30, 2017 | Expenses Paid
During Period-B
November 1, 2016
to April 30, 2017 |
| Class A | 1.43% | | | |
| Actual | | $1,000.00 | $1,109.90 | $7.48 |
| Hypothetical-C | | $1,000.00 | $1,017.70 | $7.15 |
| Class M | 1.75% | | | |
| Actual | | $1,000.00 | $1,108.20 | $9.15 |
| Hypothetical-C | | $1,000.00 | $1,016.12 | $8.75 |
| Class C | 2.17% | | | |
| Actual | | $1,000.00 | $1,105.80 | $11.33 |
| Hypothetical-C | | $1,000.00 | $1,014.03 | $10.84 |
| Class I | 1.13% | | | |
| Actual | | $1,000.00 | $1,111.80 | $5.92 |
| Hypothetical-C | | $1,000.00 | $1,019.19 | $5.66 |
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 181/365 (to reflect the one-half year period).
C 5% return per year before expenses
AEA-SANN-0617
1.703637.119
Fidelity Advisor® Overseas Fund
Class A, Class M (formerly Class T), Class C, Class I and Class Z
Semi-Annual Report April 30, 2017 |
|
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. © 2017 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.institutional.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, 2017
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Nestle SA (Reg. S) (Switzerland, Food Products) | 1.9 | 2.3 |
| Bayer AG (Germany, Pharmaceuticals) | 1.4 | 1.2 |
| Unilever NV (NY Reg.) (Netherlands, Personal Products) | 1.3 | 0.0 |
| British American Tobacco PLC (United Kingdom) (United Kingdom, Tobacco) | 1.3 | 1.3 |
| Total SA (France, Oil, Gas & Consumable Fuels) | 1.2 | 1.5 |
| | 7.1 | |
Top Five Market Sectors as of April 30, 2017
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Financials | 21.9 | 20.2 |
| Industrials | 16.3 | 11.6 |
| Consumer Discretionary | 13.0 | 16.0 |
| Consumer Staples | 12.5 | 14.1 |
| Health Care | 12.4 | 14.5 |
Top Five Countries as of April 30, 2017
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| United Kingdom | 22.6 | 18.6 |
| Japan | 18.6 | 22.1 |
| Germany | 8.9 | 9.4 |
| France | 8.5 | 9.0 |
| Switzerland | 5.3 | 5.5 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2017 |
| | Stocks | 99.1% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 0.9% |
| As of October 31, 2016 |
| | Stocks | 99.0% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 1.0% |
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments April 30, 2017 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 98.2% | | | |
| | | Shares | Value (000s) |
| Australia - 2.0% | | | |
| Adelaide Brighton Ltd. | | 370,801 | $1,644 |
| Amcor Ltd. | | 432,144 | 5,084 |
| Aub Group Ltd. | | 326,428 | 2,948 |
| Life Healthcare Group Ltd. | | 4,353 | 7 |
| Pact Group Holdings Ltd. | | 351,058 | 1,853 |
| realestate.com.au Ltd. | | 10,782 | 496 |
|
| TOTAL AUSTRALIA | | | 12,032 |
|
| Austria - 0.4% | | | |
| Andritz AG | | 41,400 | 2,290 |
| Bailiwick of Guernsey - 0.3% | | | |
| Burford Capital Ltd. | | 189,600 | 1,915 |
| Bailiwick of Jersey - 2.3% | | | |
| IWG PLC | | 679,300 | 2,859 |
| Sanne Group PLC | | 282,910 | 2,387 |
| Wolseley PLC | | 67,595 | 4,296 |
| WPP PLC | | 209,400 | 4,484 |
|
| TOTAL BAILIWICK OF JERSEY | | | 14,026 |
|
| Belgium - 1.9% | | | |
| Anheuser-Busch InBev SA NV | | 51,293 | 5,784 |
| KBC Groep NV | | 82,750 | 5,974 |
|
| TOTAL BELGIUM | | | 11,758 |
|
| Bermuda - 1.2% | | | |
| Credicorp Ltd. (United States) | | 10,300 | 1,583 |
| IHS Markit Ltd. (a) | | 123,868 | 5,376 |
| SmarTone Telecommunications Holdings Ltd. | | 325,500 | 456 |
|
| TOTAL BERMUDA | | | 7,415 |
|
| Canada - 0.5% | | | |
| Constellation Software, Inc. | | 7,000 | 3,202 |
| Denmark - 0.6% | | | |
| NNIT A/S (a) | | 54,171 | 1,527 |
| Scandinavian Tobacco Group A/S | | 108,323 | 1,891 |
|
| TOTAL DENMARK | | | 3,418 |
|
| France - 8.5% | | | |
| ALTEN | | 35,610 | 3,018 |
| Amundi SA | | 72,641 | 4,779 |
| AXA SA (b) | | 141,272 | 3,769 |
| Capgemini SA | | 45,600 | 4,566 |
| Christian Dior SA | | 18,079 | 4,962 |
| Compagnie de St. Gobain | | 74,600 | 4,027 |
| Maisons du Monde SA | | 118,400 | 4,109 |
| Publicis Groupe SA | | 61,142 | 4,414 |
| Sanofi SA | | 79,312 | 7,494 |
| Sodexo SA | | 25,541 | 3,247 |
| Total SA | | 147,933 | 7,594 |
|
| TOTAL FRANCE | | | 51,979 |
|
| Germany - 8.0% | | | |
| adidas AG | | 23,139 | 4,635 |
| Axel Springer Verlag AG | | 75,600 | 4,242 |
| Bayer AG | | 69,913 | 8,651 |
| CompuGroup Medical AG | | 50,800 | 2,501 |
| Deutsche Post AG | | 165,999 | 5,967 |
| Fresenius Medical Care AG & Co. KGaA | | 41,600 | 3,693 |
| Fresenius SE & Co. KGaA | | 70,908 | 5,747 |
| mutares AG | | 36,387 | 555 |
| ProSiebenSat.1 Media AG | | 83,700 | 3,553 |
| SAP AG | | 66,070 | 6,618 |
| Wirecard AG | | 42,600 | 2,516 |
|
| TOTAL GERMANY | | | 48,678 |
|
| Hong Kong - 1.0% | | | |
| AIA Group Ltd. | | 778,700 | 5,391 |
| Dah Sing Banking Group Ltd. | | 145,600 | 293 |
| Techtronic Industries Co. Ltd. | | 72,350 | 311 |
|
| TOTAL HONG KONG | | | 5,995 |
|
| India - 0.4% | | | |
| Axis Bank Ltd. | | 326,990 | 2,592 |
| Indonesia - 0.6% | | | |
| PT Astra International Tbk | | 724,000 | 486 |
| PT Bank Rakyat Indonesia Tbk | | 3,359,500 | 3,251 |
|
| TOTAL INDONESIA | | | 3,737 |
|
| Ireland - 2.8% | | | |
| DCC PLC (United Kingdom) | | 31,271 | 2,888 |
| Kerry Group PLC Class A | | 49,900 | 4,078 |
| Kingspan Group PLC (Ireland) | | 85,304 | 2,967 |
| Medtronic PLC | | 49,600 | 4,121 |
| United Drug PLC (United Kingdom) | | 323,826 | 3,133 |
|
| TOTAL IRELAND | | | 17,187 |
|
| Israel - 0.6% | | | |
| Frutarom Industries Ltd. | | 66,800 | 3,927 |
| Italy - 1.8% | | | |
| Banca Generali SpA | | 122,400 | 3,519 |
| Intesa Sanpaolo SpA | | 1,721,200 | 5,024 |
| Reply SpA | | 15,518 | 2,720 |
|
| TOTAL ITALY | | | 11,263 |
|
| Japan - 18.6% | | | |
| AEON Financial Service Co. Ltd. | | 149,900 | 2,879 |
| Ai Holdings Corp. | | 142,500 | 3,505 |
| Arc Land Sakamoto Co. Ltd. | | 109,300 | 1,352 |
| Arcland Service Holdings Co. Ltd. (a) | | 101,200 | 2,792 |
| Astellas Pharma, Inc. | | 334,200 | 4,407 |
| Bridgestone Corp. | | 103,800 | 4,328 |
| Broadleaf Co. Ltd. | | 4,140 | 27 |
| Daiichikosho Co. Ltd. | | 65,800 | 2,854 |
| Daito Trust Construction Co. Ltd. | | 20,520 | 3,019 |
| Dentsu, Inc. | | 75,500 | 4,253 |
| GMO Internet, Inc. | | 167,000 | 1,982 |
| Hoya Corp. | | 109,700 | 5,239 |
| Ichigo, Inc. | | 112,000 | 326 |
| Iriso Electronics Co. Ltd. | | 21,900 | 1,385 |
| Japan Tobacco, Inc. | | 111,200 | 3,697 |
| Kaken Pharmaceutical Co. Ltd. | | 38,800 | 2,301 |
| KDDI Corp. | | 162,300 | 4,303 |
| Keyence Corp. | | 9,700 | 3,898 |
| KOMEDA Holdings Co. Ltd. | | 112,900 | 1,948 |
| Miraca Holdings, Inc. | | 5,450 | 251 |
| Miroku Jyoho Service Co., Ltd. | | 85,400 | 1,619 |
| Misumi Group, Inc. | | 140,700 | 2,664 |
| Morinaga & Co. Ltd. | | 48,400 | 2,288 |
| Nabtesco Corp. | | 127,100 | 3,603 |
| Nakanishi, Inc. | | 80,100 | 3,147 |
| Nippon Paint Holdings Co. Ltd. | | 92,200 | 3,536 |
| Nitori Holdings Co. Ltd. | | 32,500 | 4,230 |
| NOF Corp. | | 152,000 | 1,713 |
| OBIC Co. Ltd. | | 47,200 | 2,549 |
| Olympus Corp. | | 152,600 | 5,873 |
| ORIX Corp. | | 280,680 | 4,283 |
| Otsuka Corp. | | 38,900 | 2,083 |
| Outsourcing, Inc. (b) | | 49,000 | 1,879 |
| Recruit Holdings Co. Ltd. | | 84,200 | 4,252 |
| S Foods, Inc. | | 700 | 22 |
| Ship Healthcare Holdings, Inc. | | 10,500 | 282 |
| SMC Corp. | | 11,000 | 3,097 |
| Software Service, Inc. | | 1,365 | 62 |
| Sundrug Co. Ltd. | | 70,200 | 2,462 |
| The Suruga Bank Ltd. | | 107,820 | 2,253 |
| Tsuruha Holdings, Inc. | | 35,000 | 3,548 |
| VT Holdings Co. Ltd. | | 158,800 | 808 |
| Welcia Holdings Co. Ltd. | | 94,000 | 3,027 |
|
| TOTAL JAPAN | | | 114,026 |
|
| Kenya - 0.3% | | | |
| Safaricom Ltd. | | 8,940,700 | 1,668 |
| Luxembourg - 0.6% | | | |
| B&M European Value Retail S.A. | | 120,273 | 525 |
| Eurofins Scientific SA | | 6,700 | 3,300 |
|
| TOTAL LUXEMBOURG | | | 3,825 |
|
| Malta - 0.4% | | | |
| Kambi Group PLC (a) | | 238,000 | 2,445 |
| Netherlands - 4.4% | | | |
| ASR Nederland NV | | 17,500 | 518 |
| IMCD Group BV | | 105,800 | 5,699 |
| ING Groep NV (Certificaten Van Aandelen) | | 300,609 | 4,900 |
| Intertrust NV | | 104,800 | 2,101 |
| Koninklijke Philips Electronics NV | | 154,500 | 5,335 |
| Unilever NV (NY Reg.) (a)(b) | | 155,187 | 8,107 |
|
| TOTAL NETHERLANDS | | | 26,660 |
|
| New Zealand - 0.7% | | | |
| EBOS Group Ltd. | | 173,724 | 2,184 |
| Trade Maine Group Ltd. | | 604,746 | 2,201 |
|
| TOTAL NEW ZEALAND | | | 4,385 |
|
| Norway - 0.6% | | | |
| Schibsted ASA (B Shares) | | 19,366 | 434 |
| Statoil ASA (b) | | 192,900 | 3,177 |
|
| TOTAL NORWAY | | | 3,611 |
|
| Panama - 0.5% | | | |
| Copa Holdings SA Class A | | 24,800 | 2,887 |
| Portugal - 0.4% | | | |
| NOS SGPS SA | | 463,903 | 2,657 |
| Spain - 3.1% | | | |
| Amadeus IT Holding SA Class A | | 105,596 | 5,694 |
| CaixaBank SA | | 897,500 | 4,075 |
| Grifols SA ADR | | 228,100 | 4,952 |
| Neinor Homes SLU | | 25,200 | 497 |
| Prosegur Cash SA | | 1,364,700 | 3,479 |
|
| TOTAL SPAIN | | | 18,697 |
|
| Sweden - 4.1% | | | |
| Addlife AB (a) | | 39,000 | 742 |
| Alfa Laval AB (b) | | 177,600 | 3,643 |
| HEXPOL AB (B Shares) (b) | | 333,600 | 3,708 |
| Indutrade AB | | 116,400 | 2,751 |
| Nordea Bank AB | | 465,000 | 5,722 |
| Svenska Cellulosa AB (SCA) (B Shares) | | 143,400 | 4,750 |
| Swedbank AB (A Shares) | | 147,895 | 3,505 |
|
| TOTAL SWEDEN | | | 24,821 |
|
| Switzerland - 5.3% | | | |
| Credit Suisse Group AG | | 317,239 | 4,838 |
| Julius Baer Group Ltd. | | 85,030 | 4,434 |
| Nestle SA (Reg. S) | | 153,535 | 11,822 |
| Sika AG | | 887 | 5,661 |
| Syngenta AG (a) | | 936 | 434 |
| UBS Group AG | | 315,644 | 5,393 |
|
| TOTAL SWITZERLAND | | | 32,582 |
|
| Taiwan - 0.5% | | | |
| Taiwan Semiconductor Manufacturing Co. Ltd. | | 450,000 | 2,894 |
| United Kingdom - 22.6% | | | |
| Aggreko PLC | | 20,800 | 239 |
| Aon PLC | | 24,900 | 2,984 |
| Ascential PLC | | 664,898 | 3,038 |
| Booker Group PLC | | 1,276,990 | 3,209 |
| British American Tobacco PLC (United Kingdom) | | 119,217 | 8,055 |
| BT Group PLC | | 1,014,437 | 4,002 |
| Cineworld Group PLC | | 441,500 | 4,026 |
| Close Brothers Group PLC | | 151,000 | 3,309 |
| Coca-Cola European Partners PLC | | 69,400 | 2,680 |
| Compass Group PLC | | 230,369 | 4,651 |
| ConvaTec Group PLC | | 808,500 | 3,216 |
| Cranswick PLC | | 54,500 | 1,893 |
| Dechra Pharmaceuticals PLC | | 56,800 | 1,243 |
| Dialog Semiconductor PLC (a) | | 9,300 | 435 |
| Diploma PLC | | 224,800 | 3,229 |
| Equiniti Group PLC | | 620,600 | 1,774 |
| Essentra PLC | | 360,990 | 2,532 |
| Exova Group Ltd. PLC | | 940,100 | 2,904 |
| Halma PLC | | 255,190 | 3,480 |
| Hastings Group Holdings PLC | | 462,248 | 1,810 |
| Hikma Pharmaceuticals PLC | | 59,433 | 1,491 |
| Hilton Food Group PLC | | 1,200 | 12 |
| Howden Joinery Group PLC | | 454,600 | 2,726 |
| IMI PLC | | 187,800 | 3,111 |
| Intertek Group PLC | | 75,100 | 3,955 |
| James Fisher and Sons PLC | | 107,747 | 2,241 |
| Jardine Lloyd Thompson Group PLC | | 186,200 | 2,646 |
| John Wood Group PLC | | 345,900 | 3,403 |
| LivaNova PLC (a) | | 23,442 | 1,235 |
| Lloyds Banking Group PLC | | 698,800 | 628 |
| London Stock Exchange Group PLC | | 69,830 | 3,060 |
| Melrose Industries PLC | | 1,463,278 | 4,482 |
| Micro Focus International PLC | | 88,526 | 2,967 |
| Prudential PLC | | 287,771 | 6,387 |
| Reckitt Benckiser Group PLC | | 56,564 | 5,212 |
| Rio Tinto PLC | | 123,214 | 4,861 |
| Rolls-Royce Holdings PLC | | 306,400 | 3,222 |
| Rotork PLC | | 557,900 | 1,777 |
| Schroders PLC | | 91,300 | 3,769 |
| Shawbrook Group PLC | | 288,900 | 1,280 |
| Sinclair Pharma PLC (a) | | 1,241,254 | 539 |
| Spectris PLC | | 103,300 | 3,693 |
| St. James's Place Capital PLC | | 317,300 | 4,718 |
| Standard Life PLC | | 815,660 | 3,844 |
| Tesco PLC (a) | | 450,600 | 1,069 |
| Ultra Electronics Holdings PLC | | 72,300 | 1,959 |
| Victrex PLC | | 94,200 | 2,338 |
| Volution Group PLC | | 994,400 | 2,524 |
| Zpg PLC | | 103,900 | 498 |
|
| TOTAL UNITED KINGDOM | | | 138,356 |
|
| United States of America - 3.2% | | | |
| Alphabet, Inc. Class C (a) | | 5,314 | 4,814 |
| Moody's Corp. | | 23,130 | 2,737 |
| PPG Industries, Inc. | | 36,000 | 3,954 |
| S&P Global, Inc. | | 38,214 | 5,128 |
| Total System Services, Inc. | | 46,600 | 2,671 |
|
| TOTAL UNITED STATES OF AMERICA | | | 19,304 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $537,336) | | | 600,232 |
|
| Nonconvertible Preferred Stocks - 0.9% | | | |
| Germany - 0.9% | | | |
| Henkel AG & Co. KGaA | | 42,500 | 5,787 |
| United Kingdom - 0.0% | | | |
| Rolls-Royce Holdings PLC (C Shares) | | 21,754,400 | 28 |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | | | |
| (Cost $5,571) | | | 5,815 |
|
| Money Market Funds - 4.0% | | | |
| Fidelity Cash Central Fund, 0.85% (c) | | 1,812,659 | 1,813 |
| Fidelity Securities Lending Cash Central Fund 0.86% (c)(d) | | 22,461,770 | 22,464 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $24,277) | | | 24,277 |
| TOTAL INVESTMENT PORTFOLIO - 103.1% | | | |
| (Cost $567,184) | | | 630,324 |
| NET OTHER ASSETS (LIABILITIES) - (3.1)% | | | (19,079) |
| NET ASSETS - 100% | | | $611,245 |
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 | $13 |
| Fidelity Securities Lending Cash Central Fund | 116 |
| Total | $129 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2017, 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 | $77,978 | $65,290 | $12,688 | $-- |
| Consumer Staples | 77,502 | 45,560 | 31,942 | -- |
| Energy | 16,415 | 5,644 | 10,771 | -- |
| Financials | 134,450 | 100,395 | 34,055 | -- |
| Health Care | 77,338 | 53,093 | 24,245 | -- |
| Industrials | 98,737 | 83,139 | 15,598 | -- |
| Information Technology | 68,608 | 54,530 | 14,078 | -- |
| Materials | 41,245 | 36,384 | 4,861 | -- |
| Real Estate | 3,345 | 3,345 | -- | -- |
| Telecommunication Services | 10,429 | 2,124 | 8,305 | -- |
| Money Market Funds | 24,277 | 24,277 | -- | -- |
| Total Investments in Securities: | $630,324 | $473,781 | $156,543 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2017. 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) |
| (Amounts in thousands) | |
| Level 1 to Level 2 | $22,470 |
| Level 2 to Level 1 | $6,249 |
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, 2017 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $21,684) — See accompanying schedule:
Unaffiliated issuers (cost $542,907) | $606,047 | |
| Fidelity Central Funds (cost $24,277) | 24,277 | |
| Total Investments (cost $567,184) | | $630,324 |
| Foreign currency held at value (cost $63) | | 63 |
| Receivable for investments sold | | 1,780 |
| Receivable for fund shares sold | | 661 |
| Dividends receivable | | 3,182 |
| Distributions receivable from Fidelity Central Funds | | 31 |
| Other receivables | | 198 |
| Total assets | | 636,239 |
| Liabilities | | |
| Payable to custodian bank | $476 | |
| Payable for investments purchased | 1,126 | |
| Payable for fund shares redeemed | 262 | |
| Accrued management fee | 358 | |
| Distribution and service plan fees payable | 127 | |
| Other affiliated payables | 121 | |
| Other payables and accrued expenses | 60 | |
| Collateral on securities loaned | 22,464 | |
| Total liabilities | | 24,994 |
| Net Assets | | $611,245 |
| Net Assets consist of: | | |
| Paid in capital | | $543,573 |
| Undistributed net investment income | | 2,597 |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 1,982 |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 63,093 |
| Net Assets | | $611,245 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($61,380.81 ÷ 2,711.500 shares) | | $22.64 |
| Maximum offering price per share (100/94.25 of $22.64) | | $24.02 |
| Class M: | | |
| Net Asset Value and redemption price per share ($251,121.50 ÷ 10,805.921 shares) | | $23.24 |
| Maximum offering price per share (100/96.50 of $23.24) | | $24.08 |
| Class C: | | |
| Net Asset Value and offering price per share ($15,804.55 ÷ 717.779 shares)(a) | | $22.02 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($282,827.56 ÷ 12,251.055 shares) | | $23.09 |
| Class Z: | | |
| Net Asset Value, offering price and redemption price per share ($110.59 ÷ 4.789 shares) | | $23.09 |
(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, 2017 (Unaudited) |
| Investment Income | | |
| Dividends | | $6,260 |
| Income from Fidelity Central Funds | | 129 |
| Income before foreign taxes withheld | | 6,389 |
| Less foreign taxes withheld | | (527) |
| Total income | | 5,862 |
| Expenses | | |
| Management fee | | |
| Basic fee | $1,982 | |
| Performance adjustment | (233) | |
| Transfer agent fees | 582 | |
| Distribution and service plan fees | 738 | |
| Accounting and security lending fees | 149 | |
| Custodian fees and expenses | 103 | |
| Independent trustees' fees and expenses | 1 | |
| Registration fees | 40 | |
| Audit | 51 | |
| Legal | 5 | |
| Interest | 2 | |
| Miscellaneous | 2 | |
| Total expenses before reductions | 3,422 | |
| Expense reductions | (219) | 3,203 |
| Net investment income (loss) | | 2,659 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | 16,499 | |
| Foreign currency transactions | (44) | |
| Total net realized gain (loss) | | 16,455 |
Change in net unrealized appreciation (depreciation) on:
Investment securities | 48,201 | |
| Assets and liabilities in foreign currencies | 85 | |
| Total change in net unrealized appreciation (depreciation) | | 48,286 |
| Net gain (loss) | | 64,741 |
| Net increase (decrease) in net assets resulting from operations | | $67,400 |
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, 2017 (Unaudited) | Year ended October 31, 2016 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $2,659 | $6,533 |
| Net realized gain (loss) | 16,455 | 13,179 |
| Change in net unrealized appreciation (depreciation) | 48,286 | (53,447) |
| Net increase (decrease) in net assets resulting from operations | 67,400 | (33,735) |
| Distributions to shareholders from net investment income | (6,346) | (2,404) |
| Distributions to shareholders from net realized gain | (438) | – |
| Total distributions | (6,784) | (2,404) |
| Share transactions - net increase (decrease) | (71,595) | (23,537) |
| Redemption fees | 3 | 14 |
| Total increase (decrease) in net assets | (10,976) | (59,662) |
| Net Assets | | |
| Beginning of period | 622,221 | 681,883 |
| End of period | $611,245 | $622,221 |
| Other Information | | |
| Undistributed net investment income end of period | $2,597 | $6,284 |
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, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.40 | $21.59 | $21.09 | $21.61 | $16.76 | $16.13 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .09 | .20 | .19 | .24 | .17 | .23 |
| Net realized and unrealized gain (loss) | 2.36 | (1.31) | .33 | (.50) | 4.97 | .64 |
| Total from investment operations | 2.45 | (1.11) | .52 | (.26) | 5.14 | .87 |
| Distributions from net investment income | (.20) | (.08) | (.02) | (.18) | (.25) | (.24) |
| Distributions from net realized gain | (.02) | – | – | (.08) | (.04) | – |
| Total distributions | (.21)B | (.08) | (.02) | (.26) | (.29) | (.24) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
| Net asset value, end of period | $22.64 | $20.40 | $21.59 | $21.09 | $21.61 | $16.76 |
| Total ReturnD,E,F | 12.18% | (5.16)% | 2.46% | (1.24)% | 31.13% | 5.51% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 1.20%I | 1.36% | 1.35% | 1.30% | 1.37% | 1.33% |
| Expenses net of fee waivers, if any | 1.20%I | 1.35% | 1.35% | 1.30% | 1.37% | 1.33% |
| Expenses net of all reductions | 1.13%I | 1.35% | 1.34% | 1.30% | 1.36% | 1.32% |
| Net investment income (loss) | .85%I | .96% | .89% | 1.10% | .91% | 1.43% |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $61 | $58 | $78 | $65 | $69 | $60 |
| Portfolio turnover rateJ | 53%I | 94% | 29% | 39% | 37% | 36% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.21 per share is comprised of distributions from net investment income of $.198 and distributions from net realized gain of $.015 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 Overseas Fund Class M
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.91 | $22.11 | $21.62 | $22.16 | $17.16 | $16.50 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .07 | .16 | .15 | .21 | .14 | .20 |
| Net realized and unrealized gain (loss) | 2.42 | (1.34) | .34 | (.52) | 5.11 | .66 |
| Total from investment operations | 2.49 | (1.18) | .49 | (.31) | 5.25 | .86 |
| Distributions from net investment income | (.15) | (.02) | – | (.15) | (.21) | (.20) |
| Distributions from net realized gain | (.02) | – | – | (.08) | (.04) | – |
| Total distributions | (.16)B | (.02) | – | (.23) | (.25) | (.20) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – | – |
| Net asset value, end of period | $23.24 | $20.91 | $22.11 | $21.62 | $22.16 | $17.16 |
| Total ReturnD,E,F | 12.03% | (5.34)% | 2.27% | (1.42)% | 30.96% | 5.32% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 1.41%I | 1.56% | 1.55% | 1.48% | 1.53% | 1.51% |
| Expenses net of fee waivers, if any | 1.41%I | 1.56% | 1.55% | 1.48% | 1.53% | 1.51% |
| Expenses net of all reductions | 1.34%I | 1.56% | 1.55% | 1.48% | 1.52% | 1.50% |
| Net investment income (loss) | .65%I | .76% | .69% | .92% | .74% | 1.25% |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $251 | $237 | $285 | $293 | $329 | $271 |
| Portfolio turnover rateJ | 53%I | 94% | 29% | 39% | 37% | 36% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.16 per share is comprised of distributions from net investment income of $.148 and distributions from net realized gain of .015 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.
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, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $19.74 | $20.98 | $20.63 | $21.21 | $16.43 | $15.78 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | –B | .03 | .02 | .07 | .03 | .11 |
| Net realized and unrealized gain (loss) | 2.30 | (1.27) | .33 | (.50) | 4.89 | .64 |
| Total from investment operations | 2.30 | (1.24) | .35 | (.43) | 4.92 | .75 |
| Distributions from net investment income | (.01) | – | – | (.07) | (.10) | (.10) |
| Distributions from net realized gain | (.02) | – | – | (.08) | (.04) | – |
| Total distributions | (.02)C | – | – | (.15) | (.14) | (.10) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $22.02 | $19.74 | $20.98 | $20.63 | $21.21 | $16.43 |
| Total ReturnD,E,F | 11.69% | (5.91)% | 1.70% | (2.06)% | 30.16% | 4.78% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 2.01%I | 2.16% | 2.15% | 2.08% | 2.12% | 2.09% |
| Expenses net of fee waivers, if any | 2.01%I | 2.16% | 2.15% | 2.08% | 2.12% | 2.09% |
| Expenses net of all reductions | 1.94%I | 2.16% | 2.14% | 2.08% | 2.10% | 2.07% |
| Net investment income (loss) | .05%I | .16% | .09% | .32% | .16% | .67% |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $16 | $16 | $19 | $19 | $21 | $16 |
| Portfolio turnover rateJ | 53%I | 94% | 29% | 39% | 37% | 36% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total distributions of $.02 per share is comprised of distributions from net investment income of $.009 and distributions from net realized gain of $.015 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 I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $20.86 | $22.06 | $21.55 | $22.07 | $17.11 | $16.45 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .12 | .27 | .27 | .32 | .24 | .29 |
| Net realized and unrealized gain (loss) | 2.41 | (1.33) | .34 | (.52) | 5.08 | .65 |
| Total from investment operations | 2.53 | (1.06) | .61 | (.20) | 5.32 | .94 |
| Distributions from net investment income | (.29) | (.14) | (.10) | (.24) | (.31) | (.28) |
| Distributions from net realized gain | (.02) | – | – | (.08) | (.04) | – |
| Total distributions | (.30)B | (.14) | (.10) | (.32) | (.36)C | (.28) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – | – |
| Net asset value, end of period | $23.09 | $20.86 | $22.06 | $21.55 | $22.07 | $17.11 |
| Total ReturnE,F | 12.35% | (4.85)% | 2.82% | (.95)% | 31.63% | 5.91% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | .89%I | 1.04% | 1.03% | .96% | 1.02% | .99% |
| Expenses net of fee waivers, if any | .89%I | 1.04% | 1.03% | .96% | 1.02% | .99% |
| Expenses net of all reductions | .82%I | 1.03% | 1.02% | .96% | 1.01% | .97% |
| Net investment income (loss) | 1.17%I | 1.28% | 1.21% | 1.44% | 1.26% | 1.77% |
| Supplemental Data | | | | | | |
| Net assets, end of period (in millions) | $283 | $311 | $298 | $330 | $307 | $257 |
| Portfolio turnover rateJ | 53%I | 94% | 29% | 39% | 37% | 36% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.30 per share is comprised of distributions from net investment income of $.287 and distributions from net realized gain of $.015 per share.
C 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.
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.
Financial Highlights — Fidelity Advisor Overseas Fund Class Z
| | Six months ended (Unaudited) April 30, |
| | 2017 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $20.88 |
| Income from Investment Operations | |
| Net investment income (loss)B | .13 |
| Net realized and unrealized gain (loss) | 2.08 |
| Total from investment operations | 2.21 |
| Distributions from net investment income | – |
| Distributions from net realized gain | – |
| Total distributions | – |
| Net asset value, end of period | $23.09 |
| Total ReturnC,D | 10.58% |
| Ratios to Average Net AssetsB,E | |
| Expenses before reductions | .75%F |
| Expenses net of fee waivers, if any | .75%F |
| Expenses net of all reductions | .68%F |
| Net investment income (loss) | 2.43%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $111 |
| Portfolio turnover rateG | 53%F |
A For the period February 1, 2017 (commencement of sale of shares) to April 30, 2017.
B Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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.
F Annualized
G 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, 2017
(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 commenced sale of Class Z shares on February 1, 2017. The Fund offers Class A, Class M (formerly Class T), Class C, Class I and Class Z 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.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All prior fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
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 Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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 Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. 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, 2017, 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 | $76,671 |
| Gross unrealized depreciation | (13,884) |
| Net unrealized appreciation (depreciation) on securities | $62,787 |
| Tax cost | $567,537 |
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 | $(10,855) |
Short-Term Trading (Redemption) Fees. During the period, 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. In November 2016, the Board of Trustees approved the elimination of these redemption fees effective December 12, 2016.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $157,124 and $231,867, 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 .59% 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% | $72 | $2 |
| Class M | .25% | .25% | 590 | 5 |
| Class C | .75% | .25% | 76 | 5 |
| | | | $738 | $12 |
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 M 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 M, and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $2 |
| Class M | 1 |
| Class C(a) | –(b) |
| | $3 |
(a) When 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, 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 | $70 | .24 |
| Class M | 235 | .20 |
| Class C | 23 | .30 |
| Class I | 254 | .18 |
| Class Z | –(b) | .05 |
| | $582 | |
(a) Annualized
(b) In the amount of less than five hundred dollars.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR 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 | $4,638 | .78% | $2 |
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. 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 $116. 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 $216 for the period.
In addition, during the period the investment advisor 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, 2017 | Year ended October 31, 2016 |
| From net investment income | | |
| Class A | $558 | $285 |
| Class M | 1,667 | 255 |
| Class C | 7 | – |
| Class I | 4,114 | 1,864 |
| Total | $6,346 | $2,404 |
| From net realized gain | | |
| Class A | $42 | $– |
| Class M | 169 | – |
| Class C | 12 | – |
| Class I | 215 | – |
| Total | $438 | $– |
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, 2017(a) | Year ended October 31, 2016 | Six months ended April 30, 2017(a) | Year ended October 31, 2016 |
| Class A | | | | |
| Shares sold | 349 | 388 | $7,025 | $7,924 |
| Reinvestment of distributions | 29 | 13 | 573 | 274 |
| Shares redeemed | (506) | (1,193) | (10,340) | (24,306) |
| Net increase (decrease) | (128) | (792) | $(2,742) | $(16,108) |
| Class M | | | | |
| Shares sold | 866 | 1,617 | $18,305 | $33,881 |
| Reinvestment of distributions | 88 | 11 | 1,797 | 250 |
| Shares redeemed | (1,495) | (3,184) | (31,742) | (66,804) |
| Net increase (decrease) | (541) | (1,556) | $(11,640) | $(32,673) |
| Class B | | | | |
| Shares sold | – | – | $– | $15 |
| Shares redeemed | – | (79) | – | (1,538) |
| Net increase (decrease) | – | (79) | $– | $(1,523) |
| Class C | | | | |
| Shares sold | 60 | 109 | $1,208 | $2,161 |
| Reinvestment of distributions | 1 | – | 17 | – |
| Shares redeemed | (131) | (214) | (2,642) | (4,248) |
| Net increase (decrease) | (70) | (105) | $(1,417) | $(2,087) |
| Class I | | | | |
| Shares sold | 668 | 2,038 | $14,045 | $41,550 |
| Reinvestment of distributions | 138 | 49 | 2,779 | 1,078 |
| Shares redeemed | (3,486) | (659) | (72,720) | (13,774) |
| Net increase (decrease) | (2,680) | 1,428 | $(55,896) | $28,854 |
| Class Z | | | | |
| Shares sold | 5 | – | $100 | $– |
| Net increase (decrease) | 5 | – | $100 | $– |
(a) Share transactions for Class Z are for the period February 1, 2017 (commencement of sale of shares) to April 30, 2017
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 12% 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 actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2016 to April 30, 2017) for Class A, Class M, Class C and Class I and for the period (February 1, 2017 to April 30, 2017) for Class Z. The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (November 1, 2016 to April 30, 2017).
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 | Ending
Account Value
April 30, 2017 | Expenses Paid
During Period |
| Class A | 1.20% | | | |
| Actual | | $1,000.00 | $1,121.80 | $6.31-B |
| Hypothetical-C | | $1,000.00 | $1,018.84 | $6.01-D |
| Class M | 1.41% | | | |
| Actual | | $1,000.00 | $1,120.30 | $7.41-B |
| Hypothetical-C | | $1,000.00 | $1,017.80 | $7.05-D |
| Class C | 2.01% | | | |
| Actual | | $1,000.00 | $1,116.90 | $10.55-B |
| Hypothetical-C | | $1,000.00 | $1,014.83 | $10.04-D |
| Class I | .89% | | | |
| Actual | | $1,000.00 | $1,123.50 | $4.69-B |
| Hypothetical-C | | $1,000.00 | $1,020.38 | $4.46-D |
| Class Z | .75% | | | |
| Actual | | $1,000.00 | $1,105.80 | $1.93-B |
| Hypothetical-C | | $1,000.00 | $1,021.08 | $3.76-D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Actual expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period) for Class A, Class M, Class C and Class I and multiplied by 89/365 (to reflect the period February 1, 2017 to April 30, 2017) for Class Z.
C 5% return per year before expenses
D Hypothetical expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
OS-SANN-0617
1.703565.119
Fidelity Advisor® Value Leaders Fund
Class A, Class M (formerly Class T), Class C and Class I
Semi-Annual Report April 30, 2017 |
|
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. © 2017 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.institutional.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, 2017
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Berkshire Hathaway, Inc. Class B | 5.3 | 4.9 |
| Alphabet, Inc. Class A | 4.4 | 4.2 |
| Wells Fargo & Co. | 4.1 | 3.9 |
| Amgen, Inc. | 3.4 | 2.2 |
| U.S. Bancorp | 2.9 | 2.2 |
| JPMorgan Chase & Co. | 2.9 | 4.4 |
| Apple, Inc. | 2.8 | 2.9 |
| Cigna Corp. | 2.5 | 1.9 |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | 2.5 | 3.6 |
| Prudential PLC | 2.3 | 1.8 |
| | 33.1 | |
Top Five Market Sectors as of April 30, 2017
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Financials | 27.5 | 28.9 |
| Health Care | 15.3 | 13.9 |
| Information Technology | 14.8 | 19.8 |
| Consumer Discretionary | 8.6 | 9.4 |
| Energy | 7.8 | 8.3 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2017 * |
| | Stocks | 94.3% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 5.7% |
* Foreign investments - 26.1%
| As of October 31, 2016 * |
| | Stocks | 93.1% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 6.9% |
* Foreign investments - 23.9%
Investments April 30, 2017 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 94.3% | | | |
| | | Shares | Value |
| CONSUMER DISCRETIONARY - 8.6% | | | |
| Media - 6.5% | | | |
| CBS Corp. Class B | | 9,400 | $625,664 |
| Discovery Communications, Inc. Class A (a) | | 9,500 | 273,410 |
| Lions Gate Entertainment Corp. Class B (a) | | 17,350 | 413,798 |
| Time Warner, Inc. | | 3,700 | 367,299 |
| Twenty-First Century Fox, Inc. Class A | | 21,600 | 659,664 |
| | | | 2,339,835 |
| Specialty Retail - 0.8% | | | |
| Cabela's, Inc. Class A (a) | | 5,200 | 283,920 |
| Textiles, Apparel & Luxury Goods - 1.3% | | | |
| PVH Corp. | | 4,800 | 484,944 |
|
| TOTAL CONSUMER DISCRETIONARY | | | 3,108,699 |
|
| CONSUMER STAPLES - 6.6% | | | |
| Beverages - 2.1% | | | |
| C&C Group PLC | | 182,102 | 751,203 |
| Food & Staples Retailing - 2.0% | | | |
| CVS Health Corp. | | 9,100 | 750,204 |
| Safeway, Inc.: | | | |
| rights (a) | | 4,300 | 0 |
| rights (a) | | 4,300 | 774 |
| | | | 750,978 |
| Food Products - 2.5% | | | |
| Kellogg Co. | | 5,000 | 355,000 |
| The J.M. Smucker Co. | | 4,300 | 544,896 |
| | | | 899,896 |
|
| TOTAL CONSUMER STAPLES | | | 2,402,077 |
|
| ENERGY - 7.8% | | | |
| Oil, Gas & Consumable Fuels - 7.8% | | | |
| GasLog Partners LP | | 24,000 | 572,400 |
| Golar LNG Partners LP | | 19,400 | 442,902 |
| Teekay Corp. | | 69,800 | 605,864 |
| Teekay LNG Partners LP | | 29,000 | 484,300 |
| Teekay Offshore Partners LP | | 137,400 | 729,594 |
| | | | 2,835,060 |
| FINANCIALS - 27.5% | | | |
| Banks - 9.9% | | | |
| JPMorgan Chase & Co. | | 11,925 | 1,037,475 |
| U.S. Bancorp | | 20,271 | 1,039,497 |
| Wells Fargo & Co. | | 27,826 | 1,498,152 |
| | | | 3,575,124 |
| Capital Markets - 1.3% | | | |
| Goldman Sachs Group, Inc. | | 2,100 | 469,980 |
| Consumer Finance - 2.7% | | | |
| Capital One Financial Corp. | | 5,000 | 401,900 |
| Discover Financial Services | | 9,300 | 582,087 |
| | | | 983,987 |
| Diversified Financial Services - 5.3% | | | |
| Berkshire Hathaway, Inc. Class B (a) | | 11,500 | 1,899,914 |
| Insurance - 8.3% | | | |
| Allstate Corp. | | 8,040 | 653,572 |
| Chubb Ltd. | | 5,600 | 768,600 |
| Prudential PLC | | 37,731 | 837,397 |
| The Travelers Companies, Inc. | | 6,200 | 754,292 |
| | | | 3,013,861 |
|
| TOTAL FINANCIALS | | | 9,942,866 |
|
| HEALTH CARE - 15.3% | | | |
| Biotechnology - 4.7% | | | |
| Amgen, Inc. | | 7,500 | 1,224,900 |
| Dyax Corp. rights 12/31/19 (a) | | 15,500 | 39,525 |
| Shire PLC sponsored ADR�� | | 2,519 | 445,762 |
| | | | 1,710,187 |
| Health Care Providers & Services - 6.0% | | | |
| Anthem, Inc. | | 3,600 | 640,404 |
| Cigna Corp. | | 5,900 | 922,583 |
| McKesson Corp. | | 4,400 | 608,476 |
| | | | 2,171,463 |
| Pharmaceuticals - 4.6% | | | |
| Allergan PLC | | 3,000 | 731,580 |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | | 29,000 | 915,820 |
| | | | 1,647,400 |
|
| TOTAL HEALTH CARE | | | 5,529,050 |
|
| INDUSTRIALS - 5.3% | | | |
| Aerospace & Defense - 2.3% | | | |
| United Technologies Corp. | | 6,800 | 809,132 |
| Professional Services - 2.5% | | | |
| Dun & Bradstreet Corp. | | 5,000 | 548,050 |
| Nielsen Holdings PLC | | 8,800 | 361,944 |
| | | | 909,994 |
| Trading Companies & Distributors - 0.5% | | | |
| AerCap Holdings NV (a) | | 4,000 | 184,040 |
|
| TOTAL INDUSTRIALS | | | 1,903,166 |
|
| INFORMATION TECHNOLOGY - 14.8% | | | |
| Communications Equipment - 1.8% | | | |
| Cisco Systems, Inc. | | 18,964 | 646,103 |
| Internet Software & Services - 5.8% | | | |
| Alphabet, Inc. Class A (a) | | 1,742 | 1,610,514 |
| VeriSign, Inc. (a)(b) | | 5,500 | 489,060 |
| | | | 2,099,574 |
| IT Services - 3.0% | | | |
| Cognizant Technology Solutions Corp. Class A (a) | | 8,000 | 481,840 |
| The Western Union Co. | | 31,100 | 617,646 |
| | | | 1,099,486 |
| Semiconductors & Semiconductor Equipment - 0.9% | | | |
| NXP Semiconductors NV (a) | | 3,200 | 338,400 |
| Technology Hardware, Storage & Peripherals - 3.3% | | | |
| Apple, Inc. | | 7,100 | 1,019,915 |
| Samsung Electronics Co. Ltd. | | 89 | 174,542 |
| | | | 1,194,457 |
|
| TOTAL INFORMATION TECHNOLOGY | | | 5,378,020 |
|
| MATERIALS - 3.6% | | | |
| Chemicals - 3.6% | | | |
| LyondellBasell Industries NV Class A | | 4,600 | 389,896 |
| Monsanto Co. | | 3,200 | 373,152 |
| Syngenta AG sponsored ADR | | 3,100 | 288,393 |
| Valspar Corp. | | 2,100 | 236,124 |
| | | | 1,287,565 |
| REAL ESTATE - 2.1% | | | |
| Real Estate Management & Development - 2.1% | | | |
| CBRE Group, Inc. (a) | | 20,900 | 748,429 |
| UTILITIES - 2.7% | | | |
| Electric Utilities - 2.7% | | | |
| Exelon Corp. | | 17,800 | 616,414 |
| Xcel Energy, Inc. | | 8,300 | 373,915 |
| | | | 990,329 |
| TOTAL COMMON STOCKS | | | |
| (Cost $30,437,006) | | | 34,125,261 |
|
| Money Market Funds - 7.3% | | | |
| Fidelity Cash Central Fund, 0.85% (c) | | 2,164,841 | 2,165,273 |
| Fidelity Securities Lending Cash Central Fund 0.86% (c)(d) | | 488,538 | 488,587 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $2,653,906) | | | 2,653,860 |
| TOTAL INVESTMENT PORTFOLIO - 101.6% | | | |
| (Cost $33,090,912) | | | 36,779,121 |
| NET OTHER ASSETS (LIABILITIES) - (1.6)% | | | (577,584) |
| NET ASSETS - 100% | | | $36,201,537 |
Values shown as $0 may reflect amounts less than $500.
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 | $7,687 |
| Fidelity Securities Lending Cash Central Fund | 3,341 |
| Total | $11,028 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2017, 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 | $3,108,699 | $3,108,699 | $-- | $-- |
| Consumer Staples | 2,402,077 | 2,401,303 | -- | 774 |
| Energy | 2,835,060 | 2,835,060 | -- | -- |
| Financials | 9,942,866 | 9,105,469 | 837,397 | -- |
| Health Care | 5,529,050 | 5,489,525 | -- | 39,525 |
| Industrials | 1,903,166 | 1,903,166 | -- | -- |
| Information Technology | 5,378,020 | 5,378,020 | -- | -- |
| Materials | 1,287,565 | 1,287,565 | -- | -- |
| Real Estate | 748,429 | 748,429 | -- | -- |
| Utilities | 990,329 | 990,329 | -- | -- |
| Money Market Funds | 2,653,860 | 2,653,860 | -- | -- |
| Total Investments in Securities: | $36,779,121 | $35,901,425 | $837,397 | $40,299 |
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 | 73.9% |
| Marshall Islands | 7.8% |
| Ireland | 4.1% |
| United Kingdom | 3.3% |
| Switzerland | 2.9% |
| Israel | 2.6% |
| Netherlands | 2.5% |
| Bailiwick of Jersey | 1.2% |
| Canada | 1.2% |
| Others (Individually Less Than 1%) | 0.5% |
| | 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | April 30, 2017 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $480,168) — See accompanying schedule:
Unaffiliated issuers (cost $30,437,006) | $34,125,261 | |
| Fidelity Central Funds (cost $2,653,906) | 2,653,860 | |
| Total Investments (cost $33,090,912) | | $36,779,121 |
| Receivable for investments sold | | 49,307 |
| Receivable for fund shares sold | | 10,617 |
| Dividends receivable | | 26,771 |
| Distributions receivable from Fidelity Central Funds | | 2,030 |
| Prepaid expenses | | 21 |
| Receivable from investment adviser for expense reductions | | 16,073 |
| Other receivables | | 2,604 |
| Total assets | | 36,886,544 |
| Liabilities | | |
| Payable for investments purchased | $92,479 | |
| Payable for fund shares redeemed | 39,650 | |
| Accrued management fee | 16,777 | |
| Distribution and service plan fees payable | 12,255 | |
| Other affiliated payables | 7,818 | |
| Other payables and accrued expenses | 27,328 | |
| Collateral on securities loaned | 488,700 | |
| Total liabilities | | 685,007 |
| Net Assets | | $36,201,537 |
| Net Assets consist of: | | |
| Paid in capital | | $47,128,077 |
| Distributions in excess of net investment income | | (6,416) |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (14,608,847) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 3,688,723 |
| Net Assets | | $36,201,537 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($18,489,171 ÷ 1,012,710 shares) | | $18.26 |
| Maximum offering price per share (100/94.25 of $18.26) | | $19.37 |
| Class M: | | |
| Net Asset Value and redemption price per share ($7,565,651 ÷ 413,525 shares) | | $18.30 |
| Maximum offering price per share (100/96.50 of $18.30) | | $18.96 |
| Class C: | | |
| Net Asset Value and offering price per share ($6,792,294 ÷ 382,874 shares)(a) | | $17.74 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($3,354,421 ÷ 182,406 shares) | | $18.39 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| | | Six months ended April 30, 2017 (Unaudited) |
| Investment Income | | |
| Dividends | | $282,452 |
| Income from Fidelity Central Funds | | 11,028 |
| Total income | | 293,480 |
| Expenses | | |
| Management fee | | |
| Basic fee | $94,351 | |
| Performance adjustment | (7,780) | |
| Transfer agent fees | 40,523 | |
| Distribution and service plan fees | 70,882 | |
| Accounting and security lending fees | 6,792 | |
| Custodian fees and expenses | 9,399 | |
| Independent trustees' fees and expenses | 70 | |
| Registration fees | 32,532 | |
| Audit | 30,787 | |
| Legal | 2,093 | |
| Miscellaneous | 709 | |
| Total expenses before reductions | 280,358 | |
| Expense reductions | (37,033) | 243,325 |
| Net investment income (loss) | | 50,155 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | 762,622 | |
| Fidelity Central Funds | 220 | |
| Foreign currency transactions | (148) | |
| Total net realized gain (loss) | | 762,694 |
Change in net unrealized appreciation (depreciation) on:
Investment securities | 3,656,391 | |
| Assets and liabilities in foreign currencies | 515 | |
| Total change in net unrealized appreciation (depreciation) | | 3,656,906 |
| Net gain (loss) | | 4,419,600 |
| Net increase (decrease) in net assets resulting from operations | | $4,469,755 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended April 30, 2017 (Unaudited) | Year ended October 31, 2016 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $50,155 | $199,138 |
| Net realized gain (loss) | 762,694 | (209,677) |
| Change in net unrealized appreciation (depreciation) | 3,656,906 | (137,385) |
| Net increase (decrease) in net assets resulting from operations | 4,469,755 | (147,924) |
| Distributions to shareholders from net investment income | (117,871) | (492,638) |
| Distributions to shareholders from net realized gain | – | (36,002) |
| Total distributions | (117,871) | (528,640) |
| Share transactions - net increase (decrease) | 324,935 | (2,669,934) |
| Total increase (decrease) in net assets | 4,676,819 | (3,346,498) |
| Net Assets | | |
| Beginning of period | 31,524,718 | 34,871,216 |
| End of period | $36,201,537 | $31,524,718 |
| Other Information | | |
| Undistributed net investment income end of period | $– | $61,300 |
| Distributions in excess of net investment income end of period | $(6,416) | $– |
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, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $16.03 | $16.34 | $15.79 | $13.73 | $10.82 | $9.96 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .04 | .12 | .29 | .12 | .10 | .13 |
| Net realized and unrealized gain (loss) | 2.27 | (.15)B | .39C | 1.94 | 3.01 | .85 |
| Total from investment operations | 2.31 | (.03) | .68 | 2.06 | 3.11 | .98 |
| Distributions from net investment income | (.08) | (.27) | (.12) | – | (.20) | (.12) |
| Distributions from net realized gain | – | (.02) | (.01) | – | – | –D |
| Total distributions | (.08) | (.28)E | (.13) | – | (.20) | (.12) |
| Net asset value, end of period | $18.26 | $16.03 | $16.34 | $15.79 | $13.73 | $10.82 |
| Total ReturnF,G,H | 14.42% | (.18)%B | 4.32%C | 15.00% | 29.24% | 10.00% |
| Ratios to Average Net AssetsI,J | | | | | | |
| Expenses before reductions | 1.45%K | 1.47% | 1.49% | 1.30% | 1.33% | 1.28% |
| Expenses net of fee waivers, if any | 1.25%K | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% |
| Expenses net of all reductions | 1.25%K | 1.24% | 1.25% | 1.25% | 1.23% | 1.24% |
| Net investment income (loss) | .45%K | .77% | 1.78% | .78% | .82% | 1.26% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $18,489 | $16,448 | $18,237 | $15,067 | $15,339 | $14,705 |
| Portfolio turnover rateL | 49%K | 63% | 54% | 182% | 87% | 94% |
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 $.01 per share. Excluding these litigation proceeds, the total return would have been (.24)%
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 4.01%
D Amount represents less than $.005 per share.
E 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.
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 Value Leaders Fund Class M
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $16.04 | $16.33 | $15.78 | $13.75 | $10.82 | $9.96 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .02 | .08 | .25 | .08 | .07 | .10 |
| Net realized and unrealized gain (loss) | 2.28 | (.16)B | .39C | 1.95 | 3.02 | .85 |
| Total from investment operations | 2.30 | (.08) | .64 | 2.03 | 3.09 | .95 |
| Distributions from net investment income | (.04) | (.20) | (.08) | – | (.16) | (.09) |
| Distributions from net realized gain | – | (.02) | (.01) | – | – | –D |
| Total distributions | (.04) | (.21)E | (.09) | – | (.16) | (.09) |
| Net asset value, end of period | $18.30 | $16.04 | $16.33 | $15.78 | $13.75 | $10.82 |
| Total ReturnF,G,H | 14.35% | (.49)%B | 4.04%C | 14.76% | 28.97% | 9.68% |
| Ratios to Average Net AssetsI,J | | | | | | |
| Expenses before reductions | 1.73%K | 1.77% | 1.78% | 1.58% | 1.60% | 1.55% |
| Expenses net of fee waivers, if any | 1.50%K | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% |
| Expenses net of all reductions | 1.50%K | 1.49% | 1.50% | 1.50% | 1.48% | 1.49% |
| Net investment income (loss) | .20%K | .52% | 1.53% | .53% | .57% | 1.01% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $7,566 | $6,732 | $7,672 | $7,819 | $6,569 | $6,145 |
| Portfolio turnover rateL | 49%K | 63% | 54% | 182% | 87% | 94% |
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 $.01 per share. Excluding these litigation proceeds, the total return would have been (.55)%
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 3.73%
D Amount represents less than $.005 per share.
E 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.
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 Value Leaders Fund Class C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $15.56 | $15.88 | $15.35 | $13.44 | $10.59 | $9.75 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.03) | –B | .17 | –B | .01 | .05 |
| Net realized and unrealized gain (loss) | 2.21 | (.16)C | .37D | 1.91 | 2.95 | .84 |
| Total from investment operations | 2.18 | (.16) | .54 | 1.91 | 2.96 | .89 |
| Distributions from net investment income | – | (.15) | – | – | (.11) | (.05) |
| Distributions from net realized gain | – | (.02) | (.01) | – | – | –B |
| Total distributions | – | (.16)E | (.01) | – | (.11) | (.05) |
| Net asset value, end of period | $17.74 | $15.56 | $15.88 | $15.35 | $13.44 | $10.59 |
| Total ReturnF,G,H | 14.01% | (1.00)%C | 3.54%D | 14.21% | 28.27% | 9.21% |
| Ratios to Average Net AssetsI,J | | | | | | |
| Expenses before reductions | 2.26%K | 2.29% | 2.29% | 2.09% | 2.08% | 2.04% |
| Expenses net of fee waivers, if any | 2.00%K | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% |
| Expenses net of all reductions | 2.00%K | 1.99% | 2.00% | 2.00% | 1.97% | 1.99% |
| Net investment income (loss) | (.30)%K | .02% | 1.03% | .03% | .07% | .51% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $6,792 | $5,057 | $5,662 | $4,458 | $4,340 | $3,299 |
| Portfolio turnover rateL | 49%K | 63% | 54% | 182% | 87% | 94% |
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 $.01 per share. Excluding these litigation proceeds, the total return would have been (1.06)%
D 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%
E 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.
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 contingent deferred sales charge.
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 Value Leaders Fund Class I
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $16.16 | $16.48 | $15.93 | $13.81 | $10.89 | $10.04 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .06 | .16 | .34 | .15 | .14 | .18 |
| Net realized and unrealized gain (loss) | 2.29 | (.15)B | .39C | 1.97 | 3.02 | .83 |
| Total from investment operations | 2.35 | .01 | .73 | 2.12 | 3.16 | 1.01 |
| Distributions from net investment income | (.12) | (.31) | (.17) | – | (.24) | (.16) |
| Distributions from net realized gain | – | (.02) | (.01) | – | – | –D |
| Total distributions | (.12) | (.33) | (.18) | – | (.24) | (.16) |
| Net asset value, end of period | $18.39 | $16.16 | $16.48 | $15.93 | $13.81 | $10.89 |
| Total ReturnE,F | 14.58% | .03%B | 4.58%C | 15.35% | 29.65% | 10.30% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 1.18%I | 1.18% | 1.18% | 1.01% | .94% | .83% |
| Expenses net of fee waivers, if any | 1.00%I | 1.00% | 1.00% | 1.00% | .94% | .83% |
| Expenses net of all reductions | 1.00%I | .99% | 1.00% | 1.00% | .92% | .82% |
| Net investment income (loss) | .70%I | 1.02% | 2.03% | 1.03% | 1.13% | 1.68% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $3,354 | $3,287 | $3,052 | $1,261 | $1,767 | $1,195 |
| Portfolio turnover rateJ | 49%I | 63% | 54% | 182% | 87% | 94% |
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 $.01 per share. Excluding these litigation proceeds, the total return would have been (.03)%
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 4.27%
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, 2017
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 M (formerly 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.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All prior fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
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 Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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 Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. 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, 2017 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. 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, partnerships, capital loss carryforwards, expiring capital loss carryforwards, and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
| Gross unrealized appreciation | $4,648,879 |
| Gross unrealized depreciation | (1,174,441) |
| Net unrealized appreciation (depreciation) on securities | $3,474,438 |
| Tax cost | $33,304,683 |
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 | $(14,819,668) |
| 2019 | (169,201) |
| Total with expiration | $(14,988,869) |
| No expiration | |
| Long-term | $(159,385) |
| Total capital loss carryforward | $(15,148,254) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $8,250,776 and $7,817,016, 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 .50% 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% | $22,274 | $347 |
| Class M | .25% | .25% | 18,612 | 102 |
| Class C | .75% | .25% | 29,996 | 1,748 |
| | | | $70,882 | $2,197 |
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 M 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 M, and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $3,634 |
| Class M | 358 |
| Class C(a) | 223 |
| | $4,215 |
(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 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 | $19,643 | .22 |
| Class M | 9,394 | .25 |
| Class C | 8,296 | .28 |
| Class I | 3,190 | .19 |
| | $40,523 | |
(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 $106 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 $58 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 $3,341. 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% | $17,604 |
| Class M | 1.50% | 8,561 |
| Class C | 2.00% | 7,792 |
| Class I | 1.00% | 2,900 |
| | | $36,857 |
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 $24.
In addition, during the period the investment adviser reimbursed and/or waiver a portion of fund-level operating expenses in the amount of $152.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2017 | Year ended October 31, 2016 |
| From net investment income | | |
| Class A | $78,085 | $296,202 |
| Class M | 16,949 | 86,018 |
| Class B | – | 332 |
| Class C | – | 52,765 |
| Class I | 22,837 | 57,321 |
| Total | $117,871 | $492,638 |
| From net realized gain | | |
| Class A | $– | $19,002 |
| Class M | – | 7,499 |
| Class B | – | 245 |
| Class C | – | 6,102 |
| Class I | – | 3,154 |
| Total | $– | $36,002 |
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, 2017 | Year ended October 31, 2016 | Six months ended
April 30, 2017 | Year ended October 31, 2016 |
| Class A | | | | |
| Shares sold | 91,652 | 178,600 | $1,650,240 | $2,796,584 |
| Reinvestment of distributions | 4,407 | 19,140 | 76,682 | 309,115 |
| Shares redeemed | (109,733) | (287,425) | (1,937,394) | (4,568,818) |
| Net increase (decrease) | (13,674) | (89,685) | $(210,472) | $(1,463,119) |
| Class M | | | | |
| Shares sold | 31,039 | 26,445 | $540,349 | $421,591 |
| Reinvestment of distributions | 936 | 5,586 | 16,345 | 90,492 |
| Shares redeemed | (38,068) | (82,224) | (675,912) | (1,314,603) |
| Net increase (decrease) | (6,093) | (50,193) | $(119,218) | $(802,520) |
| Class B | | | | |
| Shares sold | – | 123 | $– | $1,901 |
| Reinvestment of distributions | – | 32 | – | 520 |
| Shares redeemed | – | (15,535) | – | (240,977) |
| Net increase (decrease) | – | (15,380) | $– | $(238,556) |
| Class C | | | | |
| Shares sold | 96,859 | 51,108 | $1,667,992 | $785,078 |
| Reinvestment of distributions | – | 3,672 | – | 57,973 |
| Shares redeemed | (38,970) | (86,475) | (674,360) | (1,325,976) |
| Net increase (decrease) | 57,889 | (31,695) | $993,632 | $(482,925) |
| Class I | | | | |
| Shares sold | 51,264 | 106,992 | $935,818 | $1,735,415 |
| Reinvestment of distributions | 1,271 | 3,673 | 22,260 | 59,684 |
| Shares redeemed | (73,530) | (92,475) | (1,297,085) | (1,477,913) |
| Net increase (decrease) | (20,995) | 18,190 | $(339,007) | $317,186 |
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, 2016 to April 30, 2017).
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, 2016 | Ending
Account Value
April 30, 2017 | Expenses Paid
During Period-B
November 1, 2016
to April 30, 2017 |
| Class A | 1.25% | | | |
| Actual | | $1,000.00 | $1,144.20 | $6.65 |
| Hypothetical-C | | $1,000.00 | $1,018.60 | $6.26 |
| Class M | 1.50% | | | |
| Actual | | $1,000.00 | $1,143.50 | $7.97 |
| Hypothetical-C | | $1,000.00 | $1,017.36 | $7.50 |
| Class C | 2.00% | | | |
| Actual | | $1,000.00 | $1,140.10 | $10.61 |
| Hypothetical-C | | $1,000.00 | $1,014.88 | $9.99 |
| Class I | 1.00% | | | |
| Actual | | $1,000.00 | $1,145.80 | $5.32 |
| Hypothetical-C | | $1,000.00 | $1,019.84 | $5.01 |
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 181/365 (to reflect the one-half year period).
C 5% return per year before expenses
AVLF-SANN-0617
1.800656.113
Fidelity Advisor® Emerging Markets Fund
Class A, Class M (formerly Class T), Class C, Class I and Class Z
Semi-Annual Report April 30, 2017 |
|
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. © 2017 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.institutional.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, 2017
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Samsung Electronics Co. Ltd. (Korea (South), Technology Hardware, Storage & Peripherals) | 5.2 | 3.4 |
| Tencent Holdings Ltd. (Cayman Islands, Internet Software & Services) | 4.4 | 4.2 |
| Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 3.9 | 4.2 |
| Alibaba Group Holding Ltd. sponsored ADR (Cayman Islands, Internet Software & Services) | 3.3 | 3.2 |
| Naspers Ltd. Class N (South Africa, Media) | 2.3 | 2.3 |
| | 19.1 | |
Top Five Market Sectors as of April 30, 2017
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Information Technology | 27.0 | 26.3 |
| Financials | 16.1 | 16.8 |
| Consumer Discretionary | 12.9 | 13.3 |
| Consumer Staples | 12.2 | 15.9 |
| Materials | 9.5 | 4.7 |
Top Five Countries as of April 30, 2017
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| India | 11.6 | 11.5 |
| Cayman Islands | 10.8 | 13.4 |
| Brazil | 9.7 | 8.9 |
| Korea (South) | 7.9 | 7.8 |
| United States of America | 7.6 | 9.8 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2017 |
| | Stocks | 97.1% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 2.9% |
| As of October 31, 2016 |
| | Stocks | 99.1% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 0.9% |
Investments April 30, 2017 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 93.3% | | | |
| | | Shares | Value |
| Australia - 0.5% | | | |
| Amcor Ltd. | | 214,605 | $2,524,538 |
| Belgium - 0.5% | | | |
| Anheuser-Busch InBev SA NV | | 23,300 | 2,627,550 |
| Bermuda - 0.7% | | | |
| Credicorp Ltd. (United States) | | 22,314 | 3,428,769 |
| Brazil - 6.5% | | | |
| BB Seguridade Participacoes SA | | 356,600 | 3,358,099 |
| Cielo SA | | 449,363 | 3,411,934 |
| Drogasil SA (a) | | 154,400 | 3,281,070 |
| Equatorial Energia SA | | 155,800 | 2,821,928 |
| Kroton Educacional SA | | 717,600 | 3,379,947 |
| Qualicorp SA | | 420,500 | 2,994,061 |
| Smiles SA | | 126,800 | 2,758,076 |
| Ultrapar Participacoes SA | | 148,900 | 3,303,520 |
| Vale SA sponsored ADR (b) | | 589,400 | 5,057,052 |
| Weg SA (a) | | 540,430 | 3,013,693 |
|
| TOTAL BRAZIL | | | 33,379,380 |
|
| Cayman Islands - 10.8% | | | |
| Alibaba Group Holding Ltd. sponsored ADR (a) | | 148,400 | 17,140,200 |
| Ctrip.com International Ltd. ADR (a) | | 91,000 | 4,596,410 |
| NetEase, Inc. ADR | | 18,000 | 4,777,020 |
| New Oriental Education & Technology Group, Inc. sponsored ADR (a) | | 54,400 | 3,510,976 |
| Shenzhou International Group Holdings Ltd. | | 439,000 | 2,889,662 |
| Tencent Holdings Ltd. | | 725,000 | 22,716,671 |
|
| TOTAL CAYMAN ISLANDS | | | 55,630,939 |
|
| Chile - 0.6% | | | |
| Sociedad Quimica y Minera de Chile SA (PN-B) sponsored ADR | | 83,100 | 2,954,205 |
| China - 5.3% | | | |
| Gree Electric Appliances, Inc. of Zhuhai Class A | | 620,100 | 2,968,492 |
| Hangzhou Hikvision Digital Technology Co. Ltd. Class A | | 574,346 | 3,046,904 |
| Inner Mongoli Yili Industries Co. Ltd. (A Shares) | | 885,061 | 2,344,413 |
| Jiangsu Hengrui Medicine Co. Ltd. (A Shares) | | 344,912 | 2,683,344 |
| Kweichow Moutai Co. Ltd. (A Shares) | | 45,575 | 2,733,641 |
| Midea Group Co. Ltd. Class A | | 530,632 | 2,591,002 |
| Shanghai International Airport Co. Ltd. (A Shares) | | 582,787 | 2,895,547 |
| Sinopharm Group Co. Ltd. (H Shares) | | 638,400 | 2,864,381 |
| Wuliangye Yibin Co. Ltd. Class A | | 420,500 | 2,775,477 |
| Yunnan Baiyao Group Co. Ltd. | | 201,452 | 2,498,607 |
|
| TOTAL CHINA | | | 27,401,808 |
|
| France - 1.0% | | | |
| Dassault Systemes SA | | 29,253 | 2,610,723 |
| LVMH Moet Hennessy - Louis Vuitton SA | | 10,500 | 2,592,124 |
|
| TOTAL FRANCE | | | 5,202,847 |
|
| Germany - 0.5% | | | |
| Symrise AG | | 37,500 | 2,625,349 |
| Greece - 0.5% | | | |
| Titan Cement Co. SA (Reg.) | | 104,900 | 2,741,279 |
| Hong Kong - 2.3% | | | |
| AIA Group Ltd. | | 405,600 | 2,807,994 |
| CSPC Pharmaceutical Group Ltd. | | 2,318,000 | 3,218,472 |
| Guangdong Investment Ltd. | | 2,092,000 | 3,238,178 |
| Techtronic Industries Co. Ltd. | | 605,000 | 2,597,852 |
|
| TOTAL HONG KONG | | | 11,862,496 |
|
| India - 11.0% | | | |
| Adani Ports & Special Economic Zone Ltd. (a) | | 581,451 | 2,963,781 |
| Amara Raja Batteries Ltd. (a) | | 192,345 | 2,663,031 |
| Asian Paints Ltd. | | 182,100 | 3,173,650 |
| Eicher Motors Ltd. | | 7,531 | 3,053,634 |
| Godrej Consumer Products Ltd. | | 118,409 | 3,209,880 |
| HDFC Bank Ltd. | | 138,608 | 3,383,681 |
| Hero Motocorp Ltd. | | 52,309 | 2,700,150 |
| Hindustan Zinc Ltd. | | 575,708 | 2,399,455 |
| Housing Development Finance Corp. Ltd. | | 291,305 | 6,964,994 |
| IndusInd Bank Ltd. (a) | | 135,061 | 3,035,564 |
| ITC Ltd. | | 994,561 | 4,300,637 |
| LIC Housing Finance Ltd. | | 335,702 | 3,492,784 |
| Maruti Suzuki India Ltd. | | 37,846 | 3,841,025 |
| Power Grid Corp. of India Ltd. | | 830,938 | 2,688,367 |
| Reliance Industries Ltd. | | 264,626 | 5,742,825 |
| Zee Entertainment Enterprises Ltd. | | 381,397 | 3,125,510 |
|
| TOTAL INDIA | | | 56,738,968 |
|
| Indonesia - 2.4% | | | |
| PT Bank Central Asia Tbk | | 3,395,000 | 4,521,063 |
| PT Bank Rakyat Indonesia Tbk | | 4,016,400 | 3,887,130 |
| PT Surya Citra Media Tbk | | 1,922,600 | 412,532 |
| PT Telkomunikasi Indonesia Tbk Series B | | 11,529,700 | 3,803,493 |
|
| TOTAL INDONESIA | | | 12,624,218 |
|
| Ireland - 0.5% | | | |
| Accenture PLC Class A | | 21,400 | 2,595,820 |
| Israel - 1.1% | | | |
| Check Point Software Technologies Ltd. (a) | | 23,100 | 2,402,631 |
| Elbit Systems Ltd. (Israel) | | 5,062 | 603,085 |
| Frutarom Industries Ltd. | | 48,176 | 2,831,926 |
|
| TOTAL ISRAEL | | | 5,837,642 |
|
| Kenya - 0.5% | | | |
| Safaricom Ltd. | | 13,789,300 | 2,572,132 |
| Korea (South) - 7.9% | | | |
| BGFretail Co. Ltd. | | 26,516 | 2,552,305 |
| Coway Co. Ltd. | | 36,687 | 3,241,072 |
| LG Household & Health Care Ltd. | | 4,634 | 3,527,641 |
| NAVER Corp. | | 6,525 | 4,588,608 |
| Samsung Electronics Co. Ltd. | | 13,783 | 27,030,475 |
|
| TOTAL KOREA (SOUTH) | | | 40,940,101 |
|
| Luxembourg - 0.5% | | | |
| Eurofins Scientific SA | | 5,200 | 2,560,857 |
| Mexico - 6.4% | | | |
| CEMEX S.A.B. de CV sponsored ADR | | 438,900 | 4,046,658 |
| Embotelladoras Arca S.A.B. de CV | | 435,700 | 3,214,069 |
| Fomento Economico Mexicano S.A.B. de CV unit | | 493,300 | 4,439,248 |
| Gruma S.A.B. de CV Series B | | 215,365 | 2,875,842 |
| Grupo Aeroportuario del Pacifico S.A.B. de CV Series B | | 304,021 | 3,126,570 |
| Grupo Aeroportuario del Sureste S.A.B. de CV Series B | | 172,555 | 3,274,331 |
| Grupo Aeroportuario Norte S.A.B. de CV | | 459,900 | 2,552,197 |
| Grupo Cementos de Chihuahua S.A.B. de CV | | 537,700 | 2,550,364 |
| Grupo Mexico SA de CV Series B | | 1,247,600 | 3,669,519 |
| Promotora y Operadora de Infraestructura S.A.B. de CV | | 287,480 | 3,067,329 |
|
| TOTAL MEXICO | | | 32,816,127 |
|
| Netherlands - 1.1% | | | |
| ASML Holding NV (Netherlands) | | 18,500 | 2,445,451 |
| Yandex NV Series A (a) | | 112,400 | 3,064,024 |
|
| TOTAL NETHERLANDS | | | 5,509,475 |
|
| Philippines - 2.9% | | | |
| Ayala Corp. | | 183,680 | 3,173,559 |
| Ayala Land, Inc. | | 4,393,000 | 3,092,089 |
| D&L Industries, Inc. | | 9,476,500 | 2,418,655 |
| SM Investments Corp. | | 215,099 | 3,122,381 |
| SM Prime Holdings, Inc. | | 5,196,200 | 3,087,580 |
|
| TOTAL PHILIPPINES | | | 14,894,264 |
|
| Russia - 3.1% | | | |
| Alrosa Co. Ltd. (a) | | 1,690,600 | 2,913,550 |
| Magnit OJSC | | 22,897 | 3,529,747 |
| NOVATEK OAO GDR (Reg. S) | | 29,900 | 3,623,880 |
| Sberbank of Russia | | 2,122,200 | 6,164,053 |
|
| TOTAL RUSSIA | | | 16,231,230 |
|
| South Africa - 6.9% | | | |
| Aspen Pharmacare Holdings Ltd. | | 158,493 | 3,287,926 |
| Bidcorp Ltd. | | 160,315 | 3,396,621 |
| Capitec Bank Holdings Ltd. | | 52,600 | 3,001,373 |
| Discovery Ltd. | | 288,562 | 2,889,129 |
| FirstRand Ltd. | | 1,143,800 | 4,266,649 |
| Mondi Ltd. | | 127,220 | 3,300,794 |
| Naspers Ltd. Class N | | 63,100 | 11,998,561 |
| Sanlam Ltd. | | 613,300 | 3,253,341 |
|
| TOTAL SOUTH AFRICA | | | 35,394,394 |
|
| Spain - 0.5% | | | |
| Amadeus IT Holding SA Class A | | 48,300 | 2,604,353 |
| Sweden - 0.5% | | | |
| ASSA ABLOY AB (B Shares) | | 120,000 | 2,599,889 |
| Switzerland - 0.5% | | | |
| Sika AG | | 430 | 2,744,221 |
| Taiwan - 5.4% | | | |
| Advantech Co. Ltd. | | 344,000 | 2,777,223 |
| Largan Precision Co. Ltd. | | 28,200 | 4,679,317 |
| Taiwan Semiconductor Manufacturing Co. Ltd. | | 3,148,000 | 20,244,193 |
|
| TOTAL TAIWAN | | | 27,700,733 |
|
| Thailand - 1.1% | | | |
| Airports of Thailand PCL (For. Reg.) | | 2,599,100 | 3,023,520 |
| Thai Beverage PCL | | 4,125,100 | 2,731,072 |
|
| TOTAL THAILAND | | | 5,754,592 |
|
| Turkey - 0.5% | | | |
| Tofas Turk Otomobil Fabrikasi A/S | | 314,945 | 2,622,805 |
| United Arab Emirates - 0.6% | | | |
| National Bank of Abu Dhabi PJSC (a) | | 992,139 | 2,971,285 |
| United Kingdom - 3.1% | | | |
| British American Tobacco PLC (United Kingdom) | | 39,400 | 2,661,997 |
| InterContinental Hotel Group PLC | | 48,300 | 2,562,382 |
| NMC Health PLC | | 109,600 | 2,820,624 |
| Prudential PLC | | 123,385 | 2,738,390 |
| Reckitt Benckiser Group PLC | | 28,200 | 2,598,279 |
| Unilever PLC | | 48,700 | 2,505,534 |
|
| TOTAL UNITED KINGDOM | | | 15,887,206 |
|
| United States of America - 7.6% | | | |
| A.O. Smith Corp. | | 46,600 | 2,510,808 |
| Alphabet, Inc. Class C (a) | | 2,860 | 2,591,046 |
| Amazon.com, Inc. (a) | | 2,700 | 2,497,473 |
| Amphenol Corp. Class A | | 34,411 | 2,488,259 |
| China Biologic Products, Inc. (a) | | 24,100 | 2,843,800 |
| Facebook, Inc. Class A (a) | | 18,800 | 2,824,700 |
| MasterCard, Inc. Class A | | 22,300 | 2,593,936 |
| Mettler-Toledo International, Inc. (a) | | 5,180 | 2,659,516 |
| Moody's Corp. | | 23,700 | 2,804,184 |
| MSCI, Inc. | | 25,500 | 2,558,160 |
| Philip Morris International, Inc. | | 22,400 | 2,482,816 |
| S&P Global, Inc. | | 19,800 | 2,656,962 |
| Sherwin-Williams Co. | | 8,500 | 2,844,780 |
| The Walt Disney Co. | | 20,900 | 2,416,040 |
| Visa, Inc. Class A | | 28,100 | 2,563,282 |
|
| TOTAL UNITED STATES OF AMERICA | | | 39,335,762 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $387,207,648) | | | 481,315,234 |
|
| Preferred Stocks - 3.8% | | | |
| Convertible Preferred Stocks - 0.6% | | | |
| India - 0.6% | | | |
| PC Jeweller Ltd. 13.00% (c) | | 20,810,176 | 3,217,165 |
| Nonconvertible Preferred Stocks - 3.2% | | | |
| Brazil - 3.2% | | | |
| Ambev SA sponsored ADR | | 956,480 | 5,480,630 |
| Itau Unibanco Holding SA | | 567,020 | 7,013,502 |
| Itausa-Investimentos Itau SA (PN) | | 1,270,300 | 3,958,119 |
| | | | 16,452,251 |
| TOTAL PREFERRED STOCKS | | | |
| (Cost $18,565,431) | | | 19,669,416 |
|
| Money Market Funds - 3.6% | | | |
| Fidelity Cash Central Fund, 0.85% (d) | | 15,842,698 | 15,845,866 |
| Fidelity Securities Lending Cash Central Fund 0.86% (d)(e) | | 2,598,490 | 2,598,750 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $18,444,616) | | | 18,444,616 |
| TOTAL INVESTMENT PORTFOLIO - 100.7% | | | |
| (Cost $424,217,695) | | | 519,429,266 |
| NET OTHER ASSETS (LIABILITIES) - (0.7)% | | | (3,703,899) |
| NET ASSETS - 100% | | | $515,725,367 |
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) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $3,217,165 or 0.6% of net assets.
(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.
(e) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost |
| PC Jeweller Ltd. 13.00% | 7/28/16 | $3,105,681 |
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 | $15,539 |
| Fidelity Securities Lending Cash Central Fund | 13,897 |
| Total | $29,436 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2017, 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 | $66,519,256 | $48,711,406 | $17,807,850 | $-- |
| Consumer Staples | 63,268,469 | 52,875,109 | 10,393,360 | -- |
| Energy | 12,670,225 | 12,670,225 | -- | -- |
| Financials | 82,328,784 | 70,042,660 | 12,286,124 | -- |
| Health Care | 28,431,588 | 28,431,588 | -- | -- |
| Industrials | 38,469,796 | 38,469,796 | -- | -- |
| Information Technology | 139,196,770 | 96,235,906 | 42,960,864 | -- |
| Materials | 48,795,995 | 48,795,995 | -- | -- |
| Real Estate | 6,179,669 | 6,179,669 | -- | -- |
| Telecommunication Services | 6,375,625 | 2,572,132 | 3,803,493 | -- |
| Utilities | 8,748,473 | 8,748,473 | -- | -- |
| Money Market Funds | 18,444,616 | 18,444,616 | -- | -- |
| Total Investments in Securities: | $519,429,266 | $432,177,575 | $87,251,691 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2017. 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 | $12,770,324 |
| Level 2 to Level 1 | $2,253,509 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | April 30, 2017 (Unaudited) |
| Assets | | |
Investment in securities, at value (including securities loaned of $2,548,260) — See accompanying schedule:
Unaffiliated issuers (cost $405,773,079) | $500,984,650 | |
| Fidelity Central Funds (cost $18,444,616) | 18,444,616 | |
| Total Investments (cost $424,217,695) | | $519,429,266 |
| Cash | | 39,593 |
| Foreign currency held at value (cost $180,231) | | 180,231 |
| Receivable for investments sold | | 1,636,603 |
| Receivable for fund shares sold | | 1,924,263 |
| Dividends receivable | | 748,317 |
| Distributions receivable from Fidelity Central Funds | | 5,005 |
| Prepaid expenses | | 288 |
| Other receivables | | 84,721 |
| Total assets | | 524,048,287 |
| Liabilities | | |
| Payable for investments purchased | $4,168,883 | |
| Payable for fund shares redeemed | 847,056 | |
| Accrued management fee | 329,061 | |
| Distribution and service plan fees payable | 77,422 | |
| Other affiliated payables | 112,934 | |
| Other payables and accrued expenses | 188,814 | |
| Collateral on securities loaned | 2,598,750 | |
| Total liabilities | | 8,322,920 |
| Net Assets | | $515,725,367 |
| Net Assets consist of: | | |
| Paid in capital | | $493,747,726 |
| Undistributed net investment income | | 470,254 |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (73,701,489) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 95,208,876 |
| Net Assets | | $515,725,367 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($113,321,294 ÷ 4,649,787 shares) | | $24.37 |
| Maximum offering price per share (100/94.25 of $24.37) | | $25.86 |
| Class M: | | |
| Net Asset Value and redemption price per share ($45,765,562 ÷ 1,891,732 shares) | | $24.19 |
| Maximum offering price per share (100/96.50 of $24.19) | | $25.07 |
| Class C: | | |
| Net Asset Value and offering price per share ($44,166,981 ÷ 1,897,048 shares)(a) | | $23.28 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($305,021,780 ÷ 12,463,284 shares) | | $24.47 |
| Class Z: | | |
| Net Asset Value, offering price and redemption price per share ($7,449,750 ÷ 304,745 shares) | | $24.45 |
(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, 2017 (Unaudited) |
| Investment Income | | |
| Dividends | | $4,141,653 |
| Interest | | 31 |
| Income from Fidelity Central Funds | | 29,436 |
| Income before foreign taxes withheld | | 4,171,120 |
| Less foreign taxes withheld | | (350,882) |
| Total income | | 3,820,238 |
| Expenses | | |
| Management fee | $1,759,557 | |
| Transfer agent fees | 526,722 | |
| Distribution and service plan fees | 446,629 | |
| Accounting and security lending fees | 114,796 | |
| Custodian fees and expenses | 139,373 | |
| Independent trustees' fees and expenses | 886 | |
| Registration fees | 54,613 | |
| Audit | 35,079 | |
| Legal | 791 | |
| Miscellaneous | 1,704 | |
| Total expenses before reductions | 3,080,150 | |
| Expense reductions | (87,688) | 2,992,462 |
| Net investment income (loss) | | 827,776 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | 2,393,303 | |
| Fidelity Central Funds | 34 | |
| Foreign currency transactions | (117,308) | |
| Total net realized gain (loss) | | 2,276,029 |
Change in net unrealized appreciation (depreciation) on:
Investment securities | 38,682,104 | |
| Assets and liabilities in foreign currencies | 9,744 | |
| Total change in net unrealized appreciation (depreciation) | | 38,691,848 |
| Net gain (loss) | | 40,967,877 |
| Net increase (decrease) in net assets resulting from operations | | $41,795,653 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended April 30, 2017 (Unaudited) | Year ended October 31, 2016 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $827,776 | $803,129 |
| Net realized gain (loss) | 2,276,029 | (14,957,784) |
| Change in net unrealized appreciation (depreciation) | 38,691,848 | 45,581,005 |
| Net increase (decrease) in net assets resulting from operations | 41,795,653 | 31,426,350 |
| Distributions to shareholders from net investment income | (1,034,337) | (397,152) |
| Share transactions - net increase (decrease) | 20,037,101 | 2,272,710 |
| Redemption fees | 33,940 | 60,319 |
| Total increase (decrease) in net assets | 60,832,357 | 33,362,227 |
| Net Assets | | |
| Beginning of period | 454,893,010 | 421,530,783 |
| End of period | $515,725,367 | $454,893,010 |
| Other Information | | |
| Undistributed net investment income end of period | $470,254 | $676,815 |
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, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $22.30 | $20.73 | $23.38 | $22.62 | $20.51 | $20.50 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .03 | .02 | .06 | .06 | .08 | .22 |
| Net realized and unrealized gain (loss) | 2.05 | 1.55 | (2.66) | .76 | 2.23 | (.06) |
| Total from investment operations | 2.08 | 1.57 | (2.60) | .82 | 2.31 | .16 |
| Distributions from net investment income | (.01) | – | (.02) | (.05) | (.20) | (.15) |
| Distributions from net realized gain | – | – | (.03) | (.01) | – | – |
| Total distributions | (.01) | – | (.05) | (.06) | (.20) | (.15) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $24.37 | $22.30 | $20.73 | $23.38 | $22.62 | $20.51 |
| Total ReturnC,D,E | 9.31% | 7.57% | (11.13)% | 3.65% | 11.34% | .80% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 1.51%H | 1.51% | 1.52% | 1.52% | 1.56% | 1.54% |
| Expenses net of fee waivers, if any | 1.50%H | 1.51% | 1.52% | 1.52% | 1.55% | 1.54% |
| Expenses net of all reductions | 1.47%H | 1.51% | 1.50% | 1.52% | 1.50% | 1.48% |
| Net investment income (loss) | .26%H | .11% | .28% | .26% | .38% | 1.07% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $113,321 | $118,092 | $112,931 | $141,601 | $146,378 | $160,464 |
| Portfolio turnover rateI | 79%H | 85% | 110% | 97% | 121% | 177% |
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 M
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $22.16 | $20.65 | $23.30 | $22.55 | $20.44 | $20.43 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | – | (.03) | .01 | –B | .03 | .16 |
| Net realized and unrealized gain (loss) | 2.03 | 1.54 | (2.66) | .76 | 2.22 | (.06) |
| Total from investment operations | 2.03 | 1.51 | (2.65) | .76 | 2.25 | .10 |
| Distributions from net investment income | – | – | – | –B | (.14) | (.09) |
| Distributions from net realized gain | – | – | – | (.01) | – | – |
| Total distributions | – | – | – | (.01) | (.14) | (.09) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $24.19 | $22.16 | $20.65 | $23.30 | $22.55 | $20.44 |
| Total ReturnC,D,E | 9.16% | 7.31% | (11.37)% | 3.39% | 11.06% | .49% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 1.76%H | 1.77% | 1.78% | 1.78% | 1.81% | 1.80% |
| Expenses net of fee waivers, if any | 1.76%H | 1.77% | 1.78% | 1.78% | 1.81% | 1.80% |
| Expenses net of all reductions | 1.72%H | 1.77% | 1.76% | 1.78% | 1.76% | 1.73% |
| Net investment income (loss) | .01%H | (.15)% | .02% | - %I | .13% | .81% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $45,766 | $44,575 | $43,365 | $54,341 | $55,797 | $58,919 |
| Portfolio turnover rateJ | 79%H | 85% | 110% | 97% | 121% | 177% |
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 represents less than .005%.
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, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $21.37 | $20.02 | $22.70 | $22.06 | $20.00 | $20.00 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | (.05) | (.13) | (.10) | (.11) | (.08) | .06 |
| Net realized and unrealized gain (loss) | 1.96 | 1.48 | (2.58) | .75 | 2.18 | (.06) |
| Total from investment operations | 1.91 | 1.35 | (2.68) | .64 | 2.10 | – |
| Distributions from net investment income | – | – | – | – | (.04) | – |
| Distributions from net realized gain | – | – | – | – | – | – |
| Total distributions | – | – | – | – | (.04) | – |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $23.28 | $21.37 | $20.02 | $22.70 | $22.06 | $20.00 |
| Total ReturnC,D,E | 8.94% | 6.74% | (11.81)% | 2.90% | 10.49% | -% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 2.26%H | 2.26% | 2.27% | 2.27% | 2.31% | 2.29% |
| Expenses net of fee waivers, if any | 2.25%H | 2.26% | 2.27% | 2.27% | 2.30% | 2.29% |
| Expenses net of all reductions | 2.22%H | 2.26% | 2.26% | 2.27% | 2.25% | 2.23% |
| Net investment income (loss) | (.49)%H | (.64)% | (.47)% | (.49)% | (.37)% | .32% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $44,167 | $43,848 | $46,595 | $64,026 | $62,532 | $65,598 |
| Portfolio turnover rateI | 79%H | 85% | 110% | 97% | 121% | 177% |
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, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $22.44 | $20.83 | $23.50 | $22.73 | $20.61 | $20.63 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .07 | .10 | .14 | .14 | .15 | .28 |
| Net realized and unrealized gain (loss) | 2.05 | 1.55 | (2.67) | .76 | 2.25 | (.06) |
| Total from investment operations | 2.12 | 1.65 | (2.53) | .90 | 2.40 | .22 |
| Distributions from net investment income | (.09) | (.04) | (.11) | (.12) | (.28) | (.24) |
| Distributions from net realized gain | – | – | (.03) | (.01) | – | – |
| Total distributions | (.09) | (.04) | (.14) | (.13) | (.28) | (.24) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $24.47 | $22.44 | $20.83 | $23.50 | $22.73 | $20.61 |
| Total ReturnC,D | 9.53% | 7.93% | (10.83)% | 4.00% | 11.73% | 1.08% |
| Ratios to Average Net AssetsE,F | | | | | | |
| Expenses before reductions | 1.15%G | 1.16% | 1.17% | 1.18% | 1.23% | 1.22% |
| Expenses net of fee waivers, if any | 1.15%G | 1.16% | 1.17% | 1.18% | 1.22% | 1.22% |
| Expenses net of all reductions | 1.11%G | 1.15% | 1.16% | 1.18% | 1.18% | 1.16% |
| Net investment income (loss) | .62%G | .46% | .63% | .60% | .71% | 1.39% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $305,022 | $242,116 | $209,270 | $199,098 | $150,576 | $145,782 |
| Portfolio turnover rateH | 79%G | 85% | 110% | 97% | 121% | 177% |
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, | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 A |
| Selected Per–Share Data | | | | | |
| Net asset value, beginning of period | $22.44 | $20.83 | $23.50 | $22.73 | $21.33 |
| Income from Investment Operations | | | | | |
| Net investment income (loss)B | .08 | .13 | .17 | .18 | .03 |
| Net realized and unrealized gain (loss) | 2.06 | 1.55 | (2.66) | .76 | 1.37 |
| Total from investment operations | 2.14 | 1.68 | (2.49) | .94 | 1.40 |
| Distributions from net investment income | (.13) | (.07) | (.14) | (.16) | – |
| Distributions from net realized gain | – | – | (.03) | (.01) | – |
| Total distributions | (.13) | (.07) | (.18)C | (.17) | – |
| Redemption fees added to paid in capitalB,D | – | – | – | – | – |
| Net asset value, end of period | $24.45 | $22.44 | $20.83 | $23.50 | $22.73 |
| Total ReturnE,F | 9.64% | 8.09% | (10.68)% | 4.19% | 6.56% |
| Ratios to Average Net AssetsG,H | | | | | |
| Expenses before reductions | 1.00%I | 1.01% | 1.02% | 1.02% | 1.05%I |
| Expenses net of fee waivers, if any | 1.00%I | 1.01% | 1.02% | 1.02% | 1.05%I |
| Expenses net of all reductions | .96%I | 1.00% | 1.00% | 1.02% | 1.00%I |
| Net investment income (loss) | .77%I | .61% | .78% | .77% | .62%I |
| Supplemental Data | | | | | |
| Net assets, end of period (000 omitted) | $7,450 | $6,261 | $6,114 | $5,544 | $107 |
| Portfolio turnover rateJ | 79%I | 85% | 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, 2017
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 M (formerly Class T), Class C, Class I and Class Z 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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All prior fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
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 Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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 Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. 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, 2017, 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. 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. 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 | $103,096,474 |
| Gross unrealized depreciation | (8,624,691) |
| Net unrealized appreciation (depreciation) on securities | $94,471,783 |
| Tax cost | $424,957,483 |
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) |
| No expiration | |
| Short-term | (27,021,333) |
| Long-term | (98,528) |
| Total no expiration | (27,119,861) |
| Total capital loss carryforward | $(75,031,704) |
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 $185,242,836 and $176,097,153, 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% | $136,994 | $2,307 |
| Class M | .25% | .25% | 105,164 | 109 |
| Class C | .75% | .25% | 204,471 | 19,229 |
| | | | $446,629 | $21,645 |
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 M 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 M, and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $17,335 |
| Class M | 4,516 |
| Class C(a) | 2,365 |
| | $24,216 |
(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 the respective classes of the Fund, except for 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 | $165,151 | .30 |
| Class M | 65,212 | .31 |
| Class C | 61,703 | .30 |
| Class I | 233,205 | .19 |
| Class Z | 1,451 | .05 |
| | $526,722 | |
(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 $922 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 $735 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 $13,897. 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 $85,853 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 $2.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $1,833.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2017 | Year ended October 31, 2016 |
| From net investment income | | |
| Class A | $30,776 | $– |
| Class I | 966,752 | 377,257 |
| Class Z | 36,809 | 19,895 |
| Total | $1,034,337 | $397,152 |
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, 2017 | Year ended October 31, 2016 | Six months ended April 30, 2017 | Year ended October 31, 2016 |
| Class A | | | | |
| Shares sold | 573,958 | 1,287,322 | $12,627,059 | $26,551,895 |
| Reinvestment of distributions | 1,458 | – | 29,674 | – |
| Shares redeemed | (1,222,099) | (1,438,216) | (26,861,874) | (29,488,728) |
| Net increase (decrease) | (646,683) | (150,894) | $(14,205,141) | $(2,936,833) |
| Class M | | | | |
| Shares sold | 202,145 | 399,801 | $4,452,992 | $8,288,739 |
| Shares redeemed | (322,385) | (487,420) | (6,965,836) | (9,949,508) |
| Net increase (decrease) | (120,240) | (87,619) | $(2,512,844) | $(1,660,769) |
| Class B | | | | |
| Shares sold | – | 1,946 | $– | $35,966 |
| Shares redeemed | – | (164,147) | – | (3,213,934) |
| Net increase (decrease) | – | (162,201) | $– | $(3,177,968) |
| Class C | | | | |
| Shares sold | 195,913 | 320,918 | $4,191,205 | $6,446,419 |
| Shares redeemed | (350,414) | (596,462) | (7,305,076) | (11,812,796) |
| Net increase (decrease) | (154,501) | (275,544) | $(3,113,871) | $(5,366,377) |
| Class I | | | | |
| Shares sold | 2,716,601 | 2,135,827 | $62,145,808 | $44,606,979 |
| Reinvestment of distributions | 45,270 | 17,692 | 948,024 | 362,855 |
| Shares redeemed | (1,087,175) | (1,410,799) | (23,854,389) | (29,258,048) |
| Net increase (decrease) | 1,674,696 | 742,720 | $39,239,443 | $15,711,786 |
| Class Z | | | | |
| Shares sold | 60,532 | 44,404 | $1,390,451 | $931,866 |
| Reinvestment of distributions | 1,759 | 971 | 36,809 | 19,895 |
| Shares redeemed | (36,556) | (59,855) | (797,746) | (1,248,890) |
| Net increase (decrease) | 25,735 | (14,480) | $629,514 | $(297,129) |
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, 2016 to April 30, 2017).
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, 2016 | Ending
Account Value
April 30, 2017 | Expenses Paid
During Period-B
November 1, 2016
to April 30, 2017 |
| Class A | 1.50% | | | |
| Actual | | $1,000.00 | $1,093.10 | $7.78 |
| Hypothetical-C | | $1,000.00 | $1,017.36 | $7.50 |
| Class M | 1.76% | | | |
| Actual | | $1,000.00 | $1,091.60 | $9.13 |
| Hypothetical-C | | $1,000.00 | $1,016.07 | $8.80 |
| Class C | 2.25% | | | |
| Actual | | $1,000.00 | $1,089.40 | $11.66 |
| Hypothetical-C | | $1,000.00 | $1,013.64 | $11.23 |
| Class I | 1.15% | | | |
| Actual | | $1,000.00 | $1,095.30 | $5.97 |
| Hypothetical-C | | $1,000.00 | $1,019.09 | $5.76 |
| Class Z | 1.00% | | | |
| Actual | | $1,000.00 | $1,096.40 | $5.20 |
| Hypothetical-C | | $1,000.00 | $1,019.84 | $5.01 |
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 181/365 (to reflect the one-half year period).
C 5% return per year before expenses
FAEM-SANN-0617
1.800638.113
Fidelity Advisor® Global Equity Income Fund
Class A, Class M (formerly Class T), Class C and Class I
Semi-Annual Report April 30, 2017 |
|
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. © 2017 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.institutional.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, 2017
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Apple, Inc. (United States of America, Technology Hardware, Storage & Peripherals) | 2.9 | 3.0 |
| Chevron Corp. (United States of America, Oil, Gas & Consumable Fuels) | 2.0 | 2.2 |
| Microsoft Corp. (United States of America, Software) | 1.9 | 2.3 |
| Micro Focus International PLC (United Kingdom, Software) | 1.9 | 1.4 |
| Bank of America Corp. (United States of America, Banks) | 1.8 | 1.6 |
| | 10.5 | |
Top Five Market Sectors as of April 30, 2017
| | % of fund's net assets | % of fund's net assets 6 months ago |
| Financials | 17.7 | 16.1 |
| Information Technology | 16.2 | 17.7 |
| Consumer Staples | 13.7 | 14.1 |
| Health Care | 12.5 | 14.5 |
| Consumer Discretionary | 10.3 | 13.2 |
Top Five Countries as of April 30, 2017
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| United States of America | 41.6 | 43.4 |
| Japan | 9.7 | 13.6 |
| United Kingdom | 9.5 | 9.3 |
| Canada | 4.4 | 5.2 |
| Ireland | 3.4 | 4.1 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2017 |
| | Stocks | 93.5% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 6.5% |
| As of October 31, 2016 |
| | Stocks | 98.5% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 1.5% |
Investments April 30, 2017 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 92.8% | | | |
| | | Shares | Value |
| Australia - 0.2% | | | |
| Asaleo Care Ltd. | | 31,800 | $42,742 |
| Austria - 0.0% | | | |
| RHI AG | | 300 | 8,742 |
| Bailiwick of Jersey - 1.0% | | | |
| Wolseley PLC | | 2,830 | 179,867 |
| Belgium - 1.5% | | | |
| Anheuser-Busch InBev SA NV | | 1,500 | 169,156 |
| KBC Groep NV | | 1,521 | 109,814 |
|
| TOTAL BELGIUM | | | 278,970 |
|
| Canada - 4.4% | | | |
| Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | | 1,640 | 75,425 |
| Constellation Software, Inc. | | 310 | 141,784 |
| Fairfax Financial Holdings Ltd. (sub. vtg.) | | 170 | 77,711 |
| Imperial Oil Ltd. | | 5,410 | 157,380 |
| PrairieSky Royalty Ltd. | | 1,120 | 24,409 |
| Suncor Energy, Inc. | | 10,060 | 315,275 |
|
| TOTAL CANADA | | | 791,984 |
|
| Cayman Islands - 0.6% | | | |
| Goodbaby International Holdings Ltd. | | 61,000 | 27,683 |
| SITC International Holdings Co. Ltd. | | 126,000 | 90,227 |
|
| TOTAL CAYMAN ISLANDS | | | 117,910 |
|
| Chile - 0.5% | | | |
| Vina San Pedro SA | | 8,495,654 | 82,741 |
| China - 0.2% | | | |
| Shanghai International Airport Co. Ltd. (A Shares) | | 8,773 | 43,588 |
| Denmark - 0.2% | | | |
| Pandora A/S | | 300 | 32,424 |
| France - 1.0% | | | |
| Cegedim SA (a) | | 1,200 | 33,385 |
| Maisons du Monde SA | | 1,417 | 49,177 |
| VINCI SA | | 1,100 | 93,762 |
|
| TOTAL FRANCE | | | 176,324 |
|
| Germany - 2.4% | | | |
| adidas AG | | 683 | 136,820 |
| AURELIUS AG | | 1,919 | 94,694 |
| SAP AG | | 1,963 | 196,626 |
|
| TOTAL GERMANY | | | 428,140 |
|
| Hong Kong - 1.2% | | | |
| Techtronic Industries Co. Ltd. | | 52,500 | 225,433 |
| Ireland - 3.4% | | | |
| Accenture PLC Class A | | 1,784 | 216,399 |
| Allergan PLC | | 498 | 121,442 |
| Medtronic PLC | | 3,274 | 272,037 |
|
| TOTAL IRELAND | | | 609,878 |
|
| Isle of Man - 1.5% | | | |
| Paysafe Group PLC (a) | | 29,584 | 173,922 |
| Playtech Ltd. | | 7,482 | 92,934 |
|
| TOTAL ISLE OF MAN | | | 266,856 |
|
| Israel - 1.9% | | | |
| Bezeq The Israel Telecommunication Corp. Ltd. | | 66,300 | 111,574 |
| Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. | | 700 | 33,436 |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | | 6,394 | 201,923 |
|
| TOTAL ISRAEL | | | 346,933 |
|
| Italy - 0.3% | | | |
| Prada SpA | | 10,300 | 48,333 |
| Japan - 9.7% | | | |
| A/S One Corp. | | 2,700 | 119,529 |
| Astellas Pharma, Inc. | | 3,300 | 43,517 |
| Broadleaf Co. Ltd. | | 10,200 | 66,155 |
| Daiichikosho Co. Ltd. | | 5,200 | 225,539 |
| Daito Trust Construction Co. Ltd. | | 300 | 44,135 |
| Hoya Corp. | | 3,900 | 186,262 |
| Inaba Denki Sangyo Co. Ltd. | | 1,400 | 50,863 |
| Japan Meat Co. Ltd. | | 5,500 | 91,523 |
| KDDI Corp. | | 4,900 | 129,919 |
| Morinaga & Co. Ltd. | | 2,000 | 94,550 |
| Nippon Telegraph & Telephone Corp. | | 3,100 | 132,853 |
| Olympus Corp. | | 2,600 | 100,058 |
| Recruit Holdings Co. Ltd. | | 2,200 | 111,110 |
| Shinsei Bank Ltd. | | 25,000 | 46,647 |
| Sony Corp. | | 6,200 | 212,749 |
| Tsuruha Holdings, Inc. | | 1,100 | 111,505 |
|
| TOTAL JAPAN | | | 1,766,914 |
|
| Kenya - 0.3% | | | |
| Safaricom Ltd. | | 337,500 | 62,954 |
| Korea (South) - 1.1% | | | |
| Coway Co. Ltd. | | 426 | 37,634 |
| Hyundai Fire & Marine Insurance Co. Ltd. | | 700 | 22,583 |
| Samsung Electronics Co. Ltd. | | 69 | 135,319 |
|
| TOTAL KOREA (SOUTH) | | | 195,536 |
|
| Luxembourg - 0.3% | | | |
| B&M European Value Retail S.A. | | 10,963 | 47,852 |
| Multi-National - 0.6% | | | |
| HKT Trust/HKT Ltd. unit | | 83,280 | 106,531 |
| Netherlands - 2.8% | | | |
| Koninklijke Philips Electronics NV | | 3,345 | 115,511 |
| LyondellBasell Industries NV Class A | | 2,364 | 200,373 |
| Unilever NV (Certificaten Van Aandelen) (Bearer) | | 3,800 | 199,065 |
|
| TOTAL NETHERLANDS | | | 514,949 |
|
| South Africa - 1.0% | | | |
| Capitec Bank Holdings Ltd. | | 1,900 | 108,415 |
| EOH Holdings Ltd. | | 6,200 | 65,625 |
|
| TOTAL SOUTH AFRICA | | | 174,040 |
|
| Spain - 0.8% | | | |
| Amadeus IT Holding SA Class A | | 1,900 | 102,449 |
| Prosegur Cash SA | | 19,500 | 49,705 |
|
| TOTAL SPAIN | | | 152,154 |
|
| Sweden - 0.6% | | | |
| Loomis AB (B Shares) | | 3,090 | 112,160 |
| Switzerland - 2.4% | | | |
| Banque Cantonale Vaudoise | | 140 | 101,447 |
| Chubb Ltd. | | 902 | 123,800 |
| Galenica Sante Ltd. | | 230 | 10,055 |
| Nestle SA (Reg. S) | | 2,726 | 209,958 |
|
| TOTAL SWITZERLAND | | | 445,260 |
|
| Taiwan - 1.8% | | | |
| ECLAT Textile Co. Ltd. | | 6,022 | 65,853 |
| Taiwan Semiconductor Manufacturing Co. Ltd. | | 41,000 | 263,663 |
|
| TOTAL TAIWAN | | | 329,516 |
|
| United Kingdom - 9.5% | | | |
| BAE Systems PLC | | 10,199 | 82,836 |
| Beijing Yanjing Brewery ELS (UBS Warrant Programme) warrants 10/6/17 (a)(b) | | 16,700 | 16,885 |
| Booker Group PLC | | 49,800 | 125,132 |
| British American Tobacco PLC (United Kingdom) | | 3,905 | 263,835 |
| GlaxoSmithKline PLC | | 14,342 | 288,674 |
| Hilton Food Group PLC | | 11,081 | 110,440 |
| Imperial Tobacco Group PLC | | 2,246 | 110,019 |
| ITV PLC | | 41,180 | 112,006 |
| Jiangsu Yanghe Brewery JSC Ltd. ELS (UBS Warrant Programme) warrants 10/23/17 (a)(b) | | 2,074 | 24,069 |
| London Stock Exchange Group PLC | | 600 | 26,290 |
| Mears Group PLC | | 6,100 | 41,163 |
| Micro Focus International PLC | | 10,284 | 344,717 |
| Moneysupermarket.com Group PLC | | 9,700 | 43,457 |
| St. James's Place Capital PLC | | 7,186 | 106,848 |
| The Restaurant Group PLC | | 3,521 | 15,939 |
| Wuliangye Yibin Co. Ltd. ELS (A Shares) (UBS Warrant Programme) warrants 3/7/19 (a)(b) | | 3,146 | 20,765 |
|
| TOTAL UNITED KINGDOM | | | 1,733,075 |
|
| United States of America - 41.6% | | | |
| American Tower Corp. | | 2,126 | 267,748 |
| AMETEK, Inc. | | 3,913 | 223,824 |
| Amgen, Inc. | | 1,744 | 284,830 |
| Apple, Inc. | | 3,723 | 534,810 |
| AutoZone, Inc. (a) | | 119 | 82,371 |
| Ball Corp. | | 890 | 68,432 |
| Bank of America Corp. | | 14,206 | 331,568 |
| Bristol-Myers Squibb Co. | | 1,050 | 58,853 |
| Capital One Financial Corp. | | 1,300 | 104,494 |
| Caterpillar, Inc. | | 1,100 | 112,486 |
| Cedar Fair LP (depositary unit) | | 973 | 69,735 |
| Charter Communications, Inc. Class A (a) | | 237 | 81,803 |
| Chevron Corp. | | 3,432 | 366,194 |
| Citigroup, Inc. | | 4,000 | 236,480 |
| Comcast Corp. Class A | | 4,438 | 173,925 |
| ConocoPhillips Co. | | 5,124 | 245,491 |
| Danaher Corp. | | 1,661 | 138,411 |
| Deluxe Corp. | | 616 | 44,297 |
| Diamond Hill Investment Group, Inc. | | 688 | 139,079 |
| Dr. Pepper Snapple Group, Inc. | | 1,181 | 108,239 |
| E.I. du Pont de Nemours & Co. | | 1,969 | 157,028 |
| Exxon Mobil Corp. | | 2,617 | 213,678 |
| Fortive Corp. | | 959 | 60,666 |
| Johnson & Johnson | | 2,276 | 281,018 |
| JPMorgan Chase & Co. | | 3,708 | 322,596 |
| L Brands, Inc. | | 2,108 | 111,323 |
| Microsoft Corp. | | 5,140 | 351,884 |
| Molson Coors Brewing Co. Class B | | 1,918 | 183,917 |
| Monsanto Co. | | 771 | 89,906 |
| MSCI, Inc. | | 1,956 | 196,226 |
| PepsiCo, Inc. | | 1,481 | 167,768 |
| PPG Industries, Inc. | | 646 | 70,957 |
| Procter & Gamble Co. | | 1,901 | 166,014 |
| Qualcomm, Inc. | | 1,400 | 75,236 |
| Roper Technologies, Inc. | | 180 | 39,366 |
| S&P Global, Inc. | | 1,531 | 205,445 |
| Sabre Corp. | | 2,191 | 51,291 |
| Stock Yards Bancorp, Inc. | | 662 | 27,142 |
| SunTrust Banks, Inc. | | 3,535 | 200,823 |
| The Coca-Cola Co. | | 3,891 | 167,897 |
| Total System Services, Inc. | | 1,636 | 93,759 |
| U.S. Bancorp | | 4,203 | 215,530 |
| Verizon Communications, Inc. | | 900 | 41,319 |
| VF Corp. | | 1,324 | 72,330 |
| W.R. Grace & Co. | | 639 | 44,551 |
| Wells Fargo & Co. | | 5,557 | 299,189 |
|
| TOTAL UNITED STATES OF AMERICA | | | 7,579,929 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $14,262,168) | | | 16,901,735 |
|
| Nonconvertible Preferred Stocks - 0.7% | | | |
| Spain - 0.7% | | | |
| Grifols SA Class B | | | |
| (Cost $100,432) | | 6,000 | 128,069 |
| | | Principal Amount(c) | Value |
|
| Nonconvertible Bonds - 0.0% | | | |
| Canada - 0.0% | | | |
| Constellation Software, Inc. 7.9% 3/31/40(d) | CAD | | |
| (Cost $429) | | 500 | 426 |
| | | Shares | Value |
|
| Money Market Funds - 6.2% | | | |
| Fidelity Cash Central Fund, 0.85% (e) | | | |
| (Cost $1,116,775) | | 1,116,551 | 1,116,775 |
| TOTAL INVESTMENT PORTFOLIO - 99.7% | | | |
| (Cost $15,479,804) | | | 18,147,005 |
| NET OTHER ASSETS (LIABILITIES) - 0.3% | | | 59,864 |
| NET ASSETS - 100% | | | $18,206,869 |
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 $61,719 or 0.3% 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 | $2,093 |
| Total | $2,093 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2017, 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 | $1,828,929 | $1,616,180 | $212,749 | $-- |
| Consumer Staples | 2,523,417 | 1,681,403 | 842,014 | -- |
| Energy | 1,322,427 | 1,322,427 | -- | -- |
| Financials | 3,208,245 | 3,146,526 | 61,719 | -- |
| Health Care | 2,258,008 | 1,925,817 | 332,191 | -- |
| Industrials | 1,401,726 | 929,750 | 471,976 | -- |
| Information Technology | 2,950,030 | 2,489,741 | 460,289 | -- |
| Materials | 639,989 | 639,989 | -- | -- |
| Real Estate | 311,883 | 311,883 | -- | -- |
| Telecommunication Services | 585,150 | 322,378 | 262,772 | -- |
| Corporate Bonds | 426 | -- | 426 | -- |
| Money Market Funds | 1,116,775 | 1,116,775 | -- | -- |
| Total Investments in Securities: | $18,147,005 | $15,502,869 | $2,644,136 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2017. 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 | $334,101 |
| Level 2 to Level 1 | $231,655 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | April 30, 2017 (Unaudited) |
| Assets | | |
Investment in securities, at value — See accompanying schedule:
Unaffiliated issuers (cost $14,363,029) | $17,030,230 | |
| Fidelity Central Funds (cost $1,116,775) | 1,116,775 | |
| Total Investments (cost $15,479,804) | | $18,147,005 |
| Cash | | 40,174 |
| Receivable for fund shares sold | | 4,055 |
| Dividends receivable | | 43,629 |
| Interest receivable | | 2 |
| Distributions receivable from Fidelity Central Funds | | 779 |
| Prepaid expenses | | 13 |
| Receivable from investment adviser for expense reductions | | 38,125 |
| Other receivables | | 433 |
| Total assets | | 18,274,215 |
| Liabilities | | |
| Payable for fund shares redeemed | $8,829 | |
| Accrued management fee | 10,354 | |
| Transfer agent fee payable | 3,848 | |
| Distribution and service plan fees payable | 5,543 | |
| Other affiliated payables | 771 | |
| Accrued expense payable - Audit Fee | 28,876 | |
| Accrued expense payable - Custody Fee | 9,125 | |
| Total liabilities | | 67,346 |
| Net Assets | | $18,206,869 |
| Net Assets consist of: | | |
| Paid in capital | | $15,875,363 |
| Undistributed net investment income | | 23,071 |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (358,927) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 2,667,362 |
| Net Assets | | $18,206,869 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($6,263,753 ÷ 465,021 shares) | | $13.47 |
| Maximum offering price per share (100/94.25 of $13.47) | | $14.29 |
| Class M: | | |
| Net Asset Value and redemption price per share ($2,758,929 ÷ 205,007 shares) | | $13.46 |
| Maximum offering price per share (100/96.50 of $13.46) | | $13.95 |
| Class C: | | |
| Net Asset Value and offering price per share ($3,878,164 ÷ 289,668 shares)(a) | | $13.39 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($5,306,023 ÷ 393,063 shares) | | $13.50 |
(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, 2017 (Unaudited) |
| Investment Income | | |
| Dividends | | $195,231 |
| Interest | | 14 |
| Income from Fidelity Central Funds | | 2,093 |
| Income before foreign taxes withheld | | 197,338 |
| Less foreign taxes withheld | | (13,753) |
| Total income | | 183,585 |
| Expenses | | |
| Management fee | $60,489 | |
| Transfer agent fees | 23,876 | |
| Distribution and service plan fees | 32,425 | |
| Accounting fees and expenses | 4,499 | |
| Custodian fees and expenses | 7,725 | |
| Independent trustees' fees and expenses | 38 | |
| Registration fees | 52,785 | |
| Audit | 33,821 | |
| Legal | 23 | |
| Miscellaneous | 72 | |
| Total expenses before reductions | 215,753 | |
| Expense reductions | (79,688) | 136,065 |
| Net investment income (loss) | | 47,520 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (843) | |
| Fidelity Central Funds | 38 | |
| Foreign currency transactions | (4,942) | |
| Total net realized gain (loss) | | (5,747) |
Change in net unrealized appreciation (depreciation) on:
Investment securities | 1,353,364 | |
| Assets and liabilities in foreign currencies | 1,386 | |
| Total change in net unrealized appreciation (depreciation) | | 1,354,750 |
| Net gain (loss) | | 1,349,003 |
| Net increase (decrease) in net assets resulting from operations | | $1,396,523 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended April 30, 2017 (Unaudited) | Year ended October 31, 2016 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $47,520 | $139,058 |
| Net realized gain (loss) | (5,747) | (278,077) |
| Change in net unrealized appreciation (depreciation) | 1,354,750 | 531,622 |
| Net increase (decrease) in net assets resulting from operations | 1,396,523 | 392,603 |
| Distributions to shareholders from net investment income | (38,444) | (136,047) |
| Distributions to shareholders from net realized gain | (9,222) | (150,997) |
| Total distributions | (47,666) | (287,044) |
| Share transactions - net increase (decrease) | (2,464,613) | 7,788,669 |
| Total increase (decrease) in net assets | (1,115,756) | 7,894,228 |
| Net Assets | | |
| Beginning of period | 19,322,625 | 11,428,397 |
| End of period | $18,206,869 | $19,322,625 |
| Other Information | | |
| Undistributed net investment income end of period | $23,071 | $13,995 |
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, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $12.44 | $12.50 | $12.96 | $12.20 | $10.15 | $10.00 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)B | .04 | .12 | .12 | .25C | .19 | .09 |
| Net realized and unrealized gain (loss) | 1.03 | .09 | .24 | .91 | 2.05 | .16 |
| Total from investment operations | 1.07 | .21 | .36 | 1.16 | 2.24 | .25 |
| Distributions from net investment income | (.03) | (.11) | (.11) | (.22) | (.18) | (.10) |
| Distributions from net realized gain | (.01) | (.16) | (.71) | (.18) | (.01) | – |
| Total distributions | (.04) | (.27) | (.82) | (.40) | (.19) | (.10) |
| Net asset value, end of period | $13.47 | $12.44 | $12.50 | $12.96 | $12.20 | $10.15 |
| Total ReturnD,E,F | 8.63% | 1.72% | 2.85% | 9.70% | 22.28% | 2.51% |
| Ratios to Average Net AssetsG,H | | | | | | |
| Expenses before reductions | 2.36%I | 2.13% | 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% | 1.45%I |
| Expenses net of all reductions | 1.44%I | 1.45% | 1.44% | 1.45% | 1.43% | 1.44%I |
| Net investment income (loss) | .67%I | .96% | .95% | 1.95%C | 1.66% | 1.89%I |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $6,264 | $6,068 | $4,552 | $4,025 | $2,115 | $756 |
| Portfolio turnover rateJ | 59%I | 43% | 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 M
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $12.44 | $12.49 | $12.95 | $12.20 | $10.14 | $10.00 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)B | .03 | .09 | .09 | .21C | .16 | .08 |
| Net realized and unrealized gain (loss) | 1.02 | .10 | .24 | .91 | 2.06 | .15 |
| Total from investment operations | 1.05 | .19 | .33 | 1.12 | 2.22 | .23 |
| Distributions from net investment income | (.03) | (.08) | (.08) | (.19) | (.15) | (.09) |
| Distributions from net realized gain | (.01) | (.16) | (.71) | (.18) | (.01) | – |
| Total distributions | (.03)D | (.24) | (.79) | (.37) | (.16) | (.09) |
| Net asset value, end of period | $13.46 | $12.44 | $12.49 | $12.95 | $12.20 | $10.14 |
| Total ReturnE,F,G | 8.47% | 1.53% | 2.59% | 9.34% | 22.11% | 2.31% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 2.67%J | 2.46% | 2.73% | 2.96% | 4.80% | 7.68%J |
| Expenses net of fee waivers, if any | 1.70%J | 1.70% | 1.70% | 1.70% | 1.70% | 1.70%J |
| Expenses net of all reductions | 1.69%J | 1.70% | 1.69% | 1.70% | 1.68% | 1.69%J |
| Net investment income (loss) | .42%J | .71% | .70% | 1.70%C | 1.41% | 1.64%J |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $2,759 | $2,508 | $2,484 | $2,014 | $1,270 | $714 |
| Portfolio turnover rateK | 59%J | 43% | 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 the ratio of net investment income (loss) to average net assets would have been 1.00%.
D Total distributions of $.03 per share is comprised of distributions from net investment income of $.025 and distributions from net realized gain of $.007 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. 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 C
| | Six months ended (Unaudited) April 30, | Years ended October 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $12.39 | $12.46 | $12.93 | $12.18 | $10.14 | $10.00 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)B | – | .03 | .03 | .15C | .10 | .06 |
| Net realized and unrealized gain (loss) | 1.03 | .09 | .24 | .91 | 2.06 | .15 |
| Total from investment operations | 1.02 | .12 | .27 | 1.06 | 2.16 | .21 |
| Distributions from net investment income | (.01) | (.03) | (.05) | (.14) | (.11) | (.07) |
| Distributions from net realized gain | (.01) | (.16) | (.70) | (.17) | (.01) | – |
| Total distributions | (.02) | (.19) | (.74)D | (.31) | (.12) | (.07) |
| Net asset value, end of period | $13.39 | $12.39 | $12.46 | $12.93 | $12.18 | $10.14 |
| Total ReturnE,F,G | 8.20% | .99% | 2.10% | 8.83% | 21.40% | 2.12% |
| Ratios to Average Net AssetsH,I | | | | | | |
| Expenses before reductions | 3.16%J | 2.93% | 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% | 2.20%J |
| Expenses net of all reductions | 2.19%J | 2.20% | 2.19% | 2.20% | 2.18% | 2.19%J |
| Net investment income (loss) | (.08)%J | .21% | .20% | 1.20%C | .91% | 1.14%J |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $3,878 | $3,588 | $3,225 | $3,173 | $1,445 | $666 |
| Portfolio turnover rateK | 59%J | 43% | 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, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $12.46 | $12.51 | $12.97 | $12.22 | $10.15 | $10.00 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)B | .06 | .15 | .15 | .28C | .21 | .10 |
| Net realized and unrealized gain (loss) | 1.03 | .10 | .24 | .90 | 2.07 | .16 |
| Total from investment operations | 1.09 | .25 | .39 | 1.18 | 2.28 | .26 |
| Distributions from net investment income | (.04) | (.14) | (.14) | (.25) | (.20) | (.11) |
| Distributions from net realized gain | (.01) | (.16) | (.71) | (.18) | (.01) | – |
| Total distributions | (.05) | (.30) | (.85) | (.43) | (.21) | (.11) |
| Net asset value, end of period | $13.50 | $12.46 | $12.51 | $12.97 | $12.22 | $10.15 |
| Total ReturnD,E | 8.77% | 2.04% | 3.09% | 9.86% | 22.71% | 2.61% |
| Ratios to Average Net AssetsF,G | | | | | | |
| Expenses before reductions | 2.04%H | 1.68% | 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% | 1.20%H |
| Expenses net of all reductions | 1.19%H | 1.20% | 1.19% | 1.20% | 1.18% | 1.19%H |
| Net investment income (loss) | .92%H | 1.21% | 1.20% | 2.20%C | 1.91% | 2.14%H |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $5,306 | $7,159 | $1,167 | $1,334 | $1,231 | $939 |
| Portfolio turnover rateI | 59%H | 43% | 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, 2017
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 M (formerly 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 Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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 Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The 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, 2017, 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. 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), 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 | $2,985,317 |
| Gross unrealized depreciation | (397,441) |
| Net unrealized appreciation (depreciation) on securities | $2,587,876 |
| Tax cost | $15,559,129 |
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.
| No expiration | |
| Short-term | $(115,638) |
| Long-term | (67,635) |
| Total capital loss carryforward | $(183,273) |
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 $4,932,853 and $8,291,132, 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% | $7,682 | $647 |
| Class M | .25% | .25% | 6,562 | 35 |
| Class C | .75% | .25% | 18,181 | 18,181 |
| | | | $32,425 | $18,863 |
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $3,095 |
| Class M | 1,205 |
| Class C(a) | 252 |
| | $4,552 |
(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 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 | $8,283 | .27 |
| Class M | 4,233 | .32 |
| Class C | 5,646 | .31 |
| Class I | 5,714 | .23 |
| | $23,876 | |
(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 $89 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 $30 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, 2017. 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% | $27,980 |
| Class M | 1.70% | 12,774 |
| Class C | 2.20% | 17,450 |
| Class I | 1.20% | 20,877 |
| | | $79,081 |
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 $533 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 $74.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended
April 30, 2017 | Year ended October 31, 2016 |
| From net investment income | | |
| Class A | $16,400 | $51,686 |
| Class M | 5,038 | 16,313 |
| Class C | 2,258 | 9,845 |
| Class I | 14,748 | 58,203 |
| Total | $38,444 | $136,047 |
| From net realized gain | | |
| Class A | $3,377 | $60,195 |
| Class M | 1,411 | 32,288 |
| Class C | 1,976 | 41,507 |
| Class I | 2,458 | 17,007 |
| Total | $9,222 | $150,997 |
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, 2017 | Year ended October 31, 2016 | Six months ended
April 30, 2017 | Year ended October 31, 2016 |
| Class A | | | | |
| Shares sold | 88,380 | 236,290 | $1,129,797 | $2,896,105 |
| Reinvestment of distributions | 1,466 | 8,534 | 18,431 | 105,821 |
| Shares redeemed | (112,561) | (121,356) | (1,447,445) | (1,503,508) |
| Net increase (decrease) | (22,715) | 123,468 | $(299,217) | $1,498,418 |
| Class M | | | | |
| Shares sold | 38,480 | 59,702 | $491,071 | $733,048 |
| Reinvestment of distributions | 503 | 3,910 | 6,323 | 48,518 |
| Shares redeemed | (35,622) | (60,880) | (456,735) | (747,403) |
| Net increase (decrease) | 3,361 | 2,732 | $40,659 | $34,163 |
| Class C | | | | |
| Shares sold | 45,363 | 119,349 | $578,106 | $1,466,305 |
| Reinvestment of distributions | 326 | 3,971 | 4,078 | 49,176 |
| Shares redeemed | (45,654) | (92,637) | (578,524) | (1,125,027) |
| Net increase (decrease) | 35 | 30,683 | $3,660 | $390,454 |
| Class I | | | | |
| Shares sold | 130,767 | 548,216 | $1,687,529 | $6,693,045 |
| Reinvestment of distributions | 550 | 3,231 | 6,925 | 40,053 |
| Shares redeemed | (312,734) | (70,197) | (3,904,169) | (867,464) |
| Net increase (decrease) | (181,417) | 481,250 | $(2,209,715) | $5,865,634 |
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, 2016 to April 30, 2017).
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, 2016 | Ending
Account Value
April 30, 2017 | Expenses Paid
During Period-B
November 1, 2016
to April 30, 2017 |
| Class A | 1.45% | | | |
| Actual | | $1,000.00 | $1,086.30 | $7.50 |
| Hypothetical-C | | $1,000.00 | $1,017.60 | $7.25 |
| Class M | 1.70% | | | |
| Actual | | $1,000.00 | $1,084.70 | $8.79 |
| Hypothetical-C | | $1,000.00 | $1,016.36 | $8.50 |
| Class C | 2.20% | | | |
| Actual | | $1,000.00 | $1,082.00 | $11.36 |
| Hypothetical-C | | $1,000.00 | $1,013.88 | $10.99 |
| Class I | 1.20% | | | |
| Actual | | $1,000.00 | $1,087.70 | $6.21 |
| Hypothetical-C | | $1,000.00 | $1,018.84 | $6.01 |
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 181/365 (to reflect the one-half year period).
C 5% return per year before expenses
AGED-SANN-0617
1.938154.104
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 26, 2017 |
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 26, 2017 |
| |
By: | /s/Howard J. Galligan III |
| Howard J. Galligan III |
| Chief Financial Officer |
|
|
Date: | June 26, 2017 |
