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 811-4118
Fidelity Securities Fund
(Exact name of registrant as specified in charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Scott C. Goebel, Secretary
82 Devonshire St.
Boston, Massachusetts 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | July 31 |
|
|
Date of reporting period: | January 31, 2010 |
Item 1. Reports to Stockholders
Fidelity®
Blue Chip Growth
Fund
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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 (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Blue Chip Growth | .92% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,128.50 | $ 4.94 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.57 | $ 4.69 |
Class K | .72% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,129.40 | $ 3.86 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.58 | $ 3.67 |
Class F | .66% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,130.20 | $ 3.54 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.88 | $ 3.36 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 5.1 | 5.0 |
Microsoft Corp. | 4.3 | 3.3 |
Google, Inc. Class A | 4.2 | 3.3 |
Hewlett-Packard Co. | 2.7 | 2.5 |
Procter & Gamble Co. | 2.7 | 1.3 |
Cisco Systems, Inc. | 2.1 | 3.3 |
The Coca-Cola Co. | 2.0 | 2.5 |
Wal-Mart Stores, Inc. | 1.8 | 2.5 |
Johnson & Johnson | 1.8 | 1.8 |
Amazon.com, Inc. | 1.8 | 1.5 |
| 28.5 | |
Top Five Market Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Information Technology | 36.4 | 33.6 |
Health Care | 13.1 | 14.3 |
Consumer Discretionary | 12.7 | 12.5 |
Consumer Staples | 11.4 | 13.1 |
Industrials | 9.1 | 9.3 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks 99.7% |
| ![]() | Stocks 99.9% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 7.7% |
| ** Foreign investments | 6.0% |
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Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.7% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.7% | |||
Auto Components - 0.5% | |||
Johnson Controls, Inc. | 1,733,600 | $ 48,246 | |
Tenneco, Inc. (a) | 532,900 | 9,422 | |
| 57,668 | ||
Automobiles - 0.2% | |||
Harley-Davidson, Inc. (c) | 1,061,500 | 24,139 | |
Diversified Consumer Services - 0.2% | |||
Coinstar, Inc. (a) | 134,200 | 3,466 | |
DeVry, Inc. | 99,000 | 6,045 | |
Sotheby's Class A (ltd. vtg.) | 508,000 | 11,806 | |
| 21,317 | ||
Hotels, Restaurants & Leisure - 2.5% | |||
Las Vegas Sands Corp. (a)(c) | 1,767,100 | 27,390 | |
Starbucks Corp. (a) | 5,904,400 | 128,657 | |
Starwood Hotels & Resorts Worldwide, Inc. | 2,509,374 | 83,612 | |
Wyndham Worldwide Corp. | 2,166,485 | 45,475 | |
| 285,134 | ||
Household Durables - 1.5% | |||
D.R. Horton, Inc. | 2,784,900 | 32,834 | |
Furniture Brands International, Inc. (a)(d) | 4,870,949 | 25,134 | |
KB Home | 571,600 | 8,734 | |
Pulte Homes, Inc. | 2,783,302 | 29,280 | |
Ryland Group, Inc. | 698,900 | 15,558 | |
Tempur-Pedic International, Inc. (a) | 437,600 | 10,892 | |
Toll Brothers, Inc. (a) | 1,347,800 | 24,894 | |
Tupperware Brands Corp. | 474,800 | 20,160 | |
| 167,486 | ||
Internet & Catalog Retail - 1.8% | |||
Amazon.com, Inc. (a) | 1,633,900 | 204,907 | |
Leisure Equipment & Products - 0.1% | |||
Brunswick Corp. | 1,330,400 | 14,275 | |
Media - 0.6% | |||
DIRECTV (a) | 1,093,100 | 33,176 | |
DreamWorks Animation SKG, Inc. Class A (a) | 705,888 | 27,487 | |
| 60,663 | ||
Multiline Retail - 1.9% | |||
Kohl's Corp. (a) | 373,200 | 18,798 | |
Target Corp. | 3,820,300 | 195,867 | |
| 214,665 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - 2.4% | |||
AnnTaylor Stores Corp. (a) | 2,676,800 | $ 33,621 | |
Guess?, Inc. | 674,800 | 26,796 | |
Home Depot, Inc. | 1,572,900 | 44,057 | |
Lowe's Companies, Inc. | 2,572,600 | 55,697 | |
Office Depot, Inc. (a) | 3,559,801 | 20,220 | |
RadioShack Corp. | 1,949,533 | 38,055 | |
Staples, Inc. | 2,225,400 | 52,208 | |
| 270,654 | ||
Textiles, Apparel & Luxury Goods - 1.0% | |||
Deckers Outdoor Corp. (a) | 212,973 | 20,908 | |
Liz Claiborne, Inc. (a)(c) | 4,169,517 | 20,306 | |
NIKE, Inc. Class B | 339,000 | 21,611 | |
Polo Ralph Lauren Corp. Class A | 562,300 | 46,109 | |
| 108,934 | ||
TOTAL CONSUMER DISCRETIONARY | 1,429,842 | ||
CONSUMER STAPLES - 11.4% | |||
Beverages - 2.6% | |||
Anheuser-Busch InBev SA NV | 225,127 | 11,234 | |
Dr Pepper Snapple Group, Inc. | 403,600 | 11,164 | |
PepsiCo, Inc. | 760,600 | 45,347 | |
The Coca-Cola Co. | 4,120,000 | 223,510 | |
| 291,255 | ||
Food & Staples Retailing - 3.7% | |||
Costco Wholesale Corp. | 1,292,700 | 74,240 | |
Kroger Co. | 1,087,800 | 23,312 | |
Wal-Mart Stores, Inc. | 3,899,355 | 208,343 | |
Walgreen Co. | 2,791,600 | 100,637 | |
Whole Foods Market, Inc. (a)(c) | 584,700 | 15,916 | |
| 422,448 | ||
Food Products - 0.5% | |||
Ausnutria Dairy Hunan Co. Ltd. Class H | 5,844,000 | 4,215 | |
Bunge Ltd. | 186,200 | 10,947 | |
General Mills, Inc. | 500,000 | 35,655 | |
| 50,817 | ||
Household Products - 2.7% | |||
Procter & Gamble Co. | 4,934,400 | 303,712 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Personal Products - 0.8% | |||
Avon Products, Inc. | 658,100 | $ 19,835 | |
Emami Ltd. Infrastructure Ltd. | 105,223 | 451 | |
Emami Ltd. | 315,669 | 3,427 | |
Estee Lauder Companies, Inc. Class A | 424,900 | 22,316 | |
NBTY, Inc. (a) | 907,700 | 40,420 | |
| 86,449 | ||
Tobacco - 1.1% | |||
Altria Group, Inc. | 1,801,600 | 35,780 | |
Philip Morris International, Inc. | 2,050,100 | 93,300 | |
| 129,080 | ||
TOTAL CONSUMER STAPLES | 1,283,761 | ||
ENERGY - 4.6% | |||
Energy Equipment & Services - 1.5% | |||
Baker Hughes, Inc. | 278,400 | 12,606 | |
Nabors Industries Ltd. (a) | 1,907,800 | 42,544 | |
Noble Corp. | 686,200 | 27,668 | |
Pride International, Inc. (a) | 976,500 | 28,904 | |
Schlumberger Ltd. | 665,700 | 42,245 | |
Smith International, Inc. | 201,500 | 6,109 | |
Weatherford International Ltd. (a) | 696,100 | 10,915 | |
| 170,991 | ||
Oil, Gas & Consumable Fuels - 3.1% | |||
Arch Coal, Inc. | 1,119,700 | 23,592 | |
CONSOL Energy, Inc. | 273,700 | 12,757 | |
EOG Resources, Inc. | 299,100 | 27,045 | |
Marathon Oil Corp. | 810,700 | 24,167 | |
Massey Energy Co. | 890,200 | 34,291 | |
Occidental Petroleum Corp. | 1,067,700 | 83,644 | |
Oil India Ltd. | 14,187 | 345 | |
Patriot Coal Corp. (a)(c) | 980,600 | 15,189 | |
Petrohawk Energy Corp. (a) | 2,695,300 | 60,186 | |
Southwestern Energy Co. (a) | 1,507,400 | 64,637 | |
| 345,853 | ||
TOTAL ENERGY | 516,844 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - 8.7% | |||
Capital Markets - 1.4% | |||
Goldman Sachs Group, Inc. | 177,200 | $ 26,353 | |
India Infoline Ltd. | 1,864,841 | 4,785 | |
Morgan Stanley | 4,844,500 | 129,736 | |
| 160,874 | ||
Commercial Banks - 1.3% | |||
Regions Financial Corp. | 1,893,900 | 12,026 | |
Sumitomo Mitsui Financial Group, Inc. | 234,300 | 7,618 | |
Wells Fargo & Co. | 4,586,900 | 130,406 | |
| 150,050 | ||
Consumer Finance - 0.4% | |||
American Express Co. | 1,296,100 | 48,811 | |
Diversified Financial Services - 3.4% | |||
Bank of America Corp. | 4,243,400 | 64,415 | |
Citigroup, Inc. | 18,707,700 | 62,110 | |
JPMorgan Chase & Co. | 3,082,100 | 120,017 | |
Moody's Corp. | 4,545,300 | 125,405 | |
NBH Holdings Corp. Class A (a)(e) | 444,100 | 8,882 | |
| 380,829 | ||
Insurance - 1.6% | |||
AFLAC, Inc. | 409,100 | 19,813 | |
Assured Guaranty Ltd. | 1,609,600 | 36,474 | |
Conseco, Inc. (a) | 2,457,700 | 11,699 | |
Genworth Financial, Inc. Class A (a) | 4,379,900 | 60,618 | |
Hartford Financial Services Group, Inc. | 964,194 | 23,131 | |
Lincoln National Corp. | 906,700 | 22,287 | |
| 174,022 | ||
Real Estate Management & Development - 0.6% | |||
Ackruti City Ltd. | 1,975,000 | 21,683 | |
Indiabulls Real Estate Ltd. (a) | 3,166,454 | 12,024 | |
Parsvnath Developers Ltd. (a) | 6,435,670 | 17,957 | |
Unitech Ltd. | 5,251,879 | 8,460 | |
| 60,124 | ||
TOTAL FINANCIALS | 974,710 | ||
HEALTH CARE - 13.1% | |||
Biotechnology - 2.9% | |||
Alkermes, Inc. (a) | 917,100 | 10,033 | |
Amylin Pharmaceuticals, Inc. (a) | 2,057,700 | 36,997 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
Biogen Idec, Inc. (a) | 538,000 | $ 28,912 | |
Cephalon, Inc. (a) | 945,600 | 60,367 | |
Dendreon Corp. (a) | 905,681 | 25,087 | |
Human Genome Sciences, Inc. (a) | 1,012,500 | 26,801 | |
ImmunoGen, Inc. (a) | 381,739 | 2,668 | |
Isis Pharmaceuticals, Inc. (a) | 212,000 | 2,366 | |
Medivation, Inc. (a) | 114,900 | 3,825 | |
Micromet, Inc. (a) | 1,048,020 | 8,143 | |
Myriad Genetics, Inc. (a) | 150,000 | 3,525 | |
Regeneron Pharmaceuticals, Inc. (a) | 401,700 | 10,709 | |
Vertex Pharmaceuticals, Inc. (a) | 2,868,300 | 110,143 | |
| 329,576 | ||
Health Care Equipment & Supplies - 0.9% | |||
CareFusion Corp. (a) | 436,000 | 11,227 | |
Covidien PLC | 1,514,000 | 76,548 | |
NuVasive, Inc. (a)(c) | 668,700 | 18,456 | |
| 106,231 | ||
Health Care Providers & Services - 3.3% | |||
Aetna, Inc. | 1,124,300 | 33,695 | |
CIGNA Corp. | 1,271,000 | 42,922 | |
Express Scripts, Inc. (a) | 1,614,200 | 135,367 | |
Medco Health Solutions, Inc. (a) | 2,027,300 | 124,638 | |
UnitedHealth Group, Inc. | 1,003,000 | 33,099 | |
| 369,721 | ||
Health Care Technology - 0.5% | |||
Allscripts-Misys Healthcare Solutions, Inc. (a) | 949,900 | 15,635 | |
athenahealth, Inc. (a) | 106,800 | 4,202 | |
Cerner Corp. (a) | 455,200 | 34,436 | |
| 54,273 | ||
Life Sciences Tools & Services - 0.6% | |||
Illumina, Inc. (a) | 300,000 | 11,007 | |
Life Technologies Corp. (a) | 1,028,900 | 51,147 | |
| 62,154 | ||
Pharmaceuticals - 4.9% | |||
Abbott Laboratories | 2,152,800 | 113,969 | |
Allergan, Inc. | 835,300 | 48,030 | |
Johnson & Johnson | 3,289,900 | 206,803 | |
King Pharmaceuticals, Inc. (a) | 1,416,900 | 17,017 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
Merck & Co., Inc. | 2,247,400 | $ 85,806 | |
Pfizer, Inc. | 4,571,400 | 85,302 | |
| 556,927 | ||
TOTAL HEALTH CARE | 1,478,882 | ||
INDUSTRIALS - 9.1% | |||
Aerospace & Defense - 1.3% | |||
Precision Castparts Corp. | 707,400 | 74,454 | |
Raytheon Co. | 484,400 | 25,397 | |
The Boeing Co. | 60,500 | 3,666 | |
United Technologies Corp. | 708,700 | 47,823 | |
| 151,340 | ||
Airlines - 2.0% | |||
AMR Corp. (a) | 2,615,100 | 18,096 | |
Continental Airlines, Inc. Class B (a) | 2,333,200 | 42,908 | |
Delta Air Lines, Inc. (a) | 6,857,400 | 83,866 | |
UAL Corp. (a) | 5,303,800 | 64,865 | |
US Airways Group, Inc. (a) | 2,235,000 | 11,868 | |
| 221,603 | ||
Building Products - 0.7% | |||
Masco Corp. | 3,641,700 | 49,381 | |
Owens Corning (a) | 1,126,400 | 28,982 | |
| 78,363 | ||
Commercial Services & Supplies - 0.8% | |||
Avery Dennison Corp. | 2,515,400 | 81,776 | |
Republic Services, Inc. | 211,700 | 5,671 | |
Waste Management, Inc. | 108,000 | 3,461 | |
| 90,908 | ||
Construction & Engineering - 0.5% | |||
Fluor Corp. | 654,500 | 29,675 | |
Jacobs Engineering Group, Inc. (a) | 779,271 | 29,449 | |
| 59,124 | ||
Industrial Conglomerates - 0.6% | |||
3M Co. | 795,000 | 63,990 | |
Machinery - 1.5% | |||
Caterpillar, Inc. | 301,900 | 15,771 | |
Cummins, Inc. | 583,600 | 26,355 | |
Danaher Corp. | 81,100 | 5,786 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Machinery - continued | |||
Ingersoll-Rand Co. Ltd. | 2,235,000 | $ 72,548 | |
PACCAR, Inc. | 1,474,700 | 53,133 | |
| 173,593 | ||
Professional Services - 0.2% | |||
Equifax, Inc. | 75,000 | 2,400 | |
Monster Worldwide, Inc. (a) | 1,416,086 | 22,077 | |
| 24,477 | ||
Road & Rail - 1.5% | |||
Avis Budget Group, Inc. (a) | 1,656,932 | 17,928 | |
CSX Corp. | 1,318,500 | 56,511 | |
Hertz Global Holdings, Inc. (a)(c) | 1,286,300 | 13,326 | |
Union Pacific Corp. | 1,319,100 | 79,806 | |
| 167,571 | ||
TOTAL INDUSTRIALS | 1,030,969 | ||
INFORMATION TECHNOLOGY - 36.4% | |||
Communications Equipment - 5.1% | |||
Cisco Systems, Inc. (a) | 10,627,100 | 238,791 | |
Emulex Corp. (a) | 1,519,000 | 17,074 | |
Palm, Inc. (a)(c) | 977,925 | 10,161 | |
QUALCOMM, Inc. | 4,716,400 | 184,836 | |
Research In Motion Ltd. (a) | 1,889,700 | 118,976 | |
| 569,838 | ||
Computers & Peripherals - 10.4% | |||
Apple, Inc. (a) | 2,993,900 | 575,183 | |
Hewlett-Packard Co. | 6,507,500 | 306,308 | |
NCR Corp. (a) | 3,703,800 | 44,334 | |
NetApp, Inc. (a) | 953,800 | 27,784 | |
QLogic Corp. (a) | 1,393,600 | 23,956 | |
SanDisk Corp. (a) | 1,617,687 | 41,122 | |
Seagate Technology | 7,078,700 | 118,427 | |
Western Digital Corp. (a) | 1,096,100 | 41,641 | |
| 1,178,755 | ||
Electronic Equipment & Components - 1.9% | |||
Agilent Technologies, Inc. | 6,278,400 | 175,984 | |
Tyco Electronics Ltd. | 1,337,925 | 33,288 | |
Vishay Intertechnology, Inc. (a) | 212,064 | 1,599 | |
| 210,871 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - 5.6% | |||
Akamai Technologies, Inc. (a) | 978,900 | $ 24,179 | |
Baidu.com, Inc. sponsored ADR (a) | 90,800 | 37,383 | |
eBay, Inc. (a) | 2,633,000 | 60,612 | |
Google, Inc. Class A (a) | 885,700 | 468,907 | |
Open Text Corp. (a) | 331,500 | 13,061 | |
Rackspace Hosting, Inc. (a) | 434,900 | 7,924 | |
Tencent Holdings Ltd. | 1,008,400 | 18,859 | |
| 630,925 | ||
IT Services - 2.0% | |||
Cognizant Technology Solutions Corp. Class A (a) | 1,260,900 | 55,051 | |
MasterCard, Inc. Class A | 369,600 | 92,363 | |
Visa, Inc. Class A | 976,300 | 80,086 | |
| 227,500 | ||
Semiconductors & Semiconductor Equipment - 3.9% | |||
Avago Technologies Ltd. | 2,996,200 | 52,074 | |
Cree, Inc. (a) | 523,900 | 29,291 | |
Integrated Device Technology, Inc. (a) | 4,218,209 | 23,917 | |
Intel Corp. | 3,661,000 | 71,023 | |
Lam Research Corp. (a) | 1,980,300 | 65,370 | |
Marvell Technology Group Ltd. (a) | 2,730,400 | 47,591 | |
Microsemi Corp. (a) | 3,916,000 | 58,505 | |
NVIDIA Corp. (a) | 6,187,730 | 95,229 | |
| 443,000 | ||
Software - 7.5% | |||
Adobe Systems, Inc. (a) | 1,376,700 | 44,467 | |
BMC Software, Inc. (a) | 864,400 | 33,400 | |
Check Point Software Technologies Ltd. (a) | 1,849,100 | 59,134 | |
Informatica Corp. (a) | 1,522,500 | 36,068 | |
Microsoft Corp. | 17,006,000 | 479,229 | |
Nuance Communications, Inc. (a) | 2,279,300 | 34,235 | |
Oracle Corp. | 1,973,500 | 45,509 | |
Red Hat, Inc. (a) | 2,064,700 | 56,201 | |
Salesforce.com, Inc. (a) | 15,000 | 953 | |
SuccessFactors, Inc. (a) | 199,100 | 3,245 | |
TiVo, Inc. (a) | 2,300,000 | 20,746 | |
VMware, Inc. Class A (a) | 758,500 | 34,443 | |
| 847,630 | ||
TOTAL INFORMATION TECHNOLOGY | 4,108,519 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - 3.3% | |||
Chemicals - 2.9% | |||
Air Products & Chemicals, Inc. | 689,400 | $ 52,367 | |
Airgas, Inc. | 243,500 | 10,290 | |
Albemarle Corp. | 1,485,800 | 53,073 | |
Dow Chemical Co. | 4,668,800 | 126,478 | |
Terra Industries, Inc. | 1,178,500 | 37,241 | |
The Mosaic Co. | 779,300 | 41,700 | |
| 321,149 | ||
Metals & Mining - 0.1% | |||
Freeport-McMoRan Copper & Gold, Inc. | 226,000 | 15,072 | |
Paper & Forest Products - 0.3% | |||
Louisiana-Pacific Corp. (a) | 2,684,000 | 19,083 | |
Weyerhaeuser Co. | 412,700 | 16,467 | |
| 35,550 | ||
TOTAL MATERIALS | 371,771 | ||
TELECOMMUNICATION SERVICES - 0.4% | |||
Wireless Telecommunication Services - 0.4% | |||
Sprint Nextel Corp. (a) | 14,597,000 | 47,878 | |
UTILITIES - 0.0% | |||
Electric Utilities - 0.0% | |||
KSK Energy Ventures Ltd. (a) | 541,418 | 2,121 | |
Independent Power Producers & Energy Traders - 0.0% | |||
Indiabulls Power Ltd. | 813,890 | 581 | |
TOTAL UTILITIES | 2,702 | ||
TOTAL COMMON STOCKS (Cost $9,546,716) | 11,245,878 | ||
Convertible Preferred Stocks - 0.1% | |||
|
|
|
|
FINANCIALS - 0.1% | |||
Diversified Financial Services - 0.1% | |||
Bank of America Corp. (Cost $11,625) | 775,000 | 11,703 | |
Money Market Funds - 0.7% | |||
Shares | Value (000s) | ||
Fidelity Cash Central Fund, 0.17% (f) | 24,358,300 | $ 24,358 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(f) | 57,136,075 | 57,136 | |
TOTAL MONEY MARKET FUNDS (Cost $81,494) | 81,494 | ||
TOTAL INVESTMENT PORTFOLIO - 100.5% (Cost $9,639,835) | 11,339,075 | ||
NET OTHER ASSETS - (0.5)% | (53,767) | ||
NET ASSETS - 100% | $ 11,285,308 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated company |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $8,882,000 or 0.1% of net assets. |
(f) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
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 | $ 11 |
Fidelity Securities Lending Cash Central Fund | 126 |
Total | $ 137 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
Furniture Brands International, Inc. | $ 19,567 | $ 202 | $ 274 | $ - | $ 25,134 |
Total | $ 19,567 | $ 202 | $ 274 | $ - | $ 25,134 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 1,429,842 | $ 1,429,842 | $ - | $ - |
Consumer Staples | 1,283,761 | 1,272,076 | 11,234 | 451 |
Energy | 516,844 | 516,844 | - | - |
Financials | 986,413 | 977,531 | - | 8,882 |
Health Care | 1,478,882 | 1,478,882 | - | - |
Industrials | 1,030,969 | 1,030,969 | - | - |
Information Technology | 4,108,519 | 4,108,519 | - | - |
Materials | 371,771 | 371,771 | - | - |
Telecommunication Services | 47,878 | 47,878 | - | - |
Utilities | 2,702 | 2,702 | - | - |
Money Market Funds | 81,494 | 81,494 | - | - |
Total Investments in Securities: | $ 11,339,075 | $ 11,318,508 | $ 11,234 | $ 9,333 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) |
|
Investments in Securities: | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 37 |
Cost of Purchases | 9,296 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in/out of Level 3 | - |
Ending Balance | $ 9,333 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2010 | $ 37 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $671,371,000 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $1,443,854,000 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2010 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $53,814) - See accompanying schedule: Unaffiliated issuers (cost $9,502,418) | $ 11,232,447 |
|
Fidelity Central Funds (cost $81,494) | 81,494 |
|
Other affiliated issuers (cost $55,923) | 25,134 |
|
Total Investments (cost $9,639,835) |
| $ 11,339,075 |
Receivable for investments sold | 193,429 | |
Receivable for fund shares sold | 12,860 | |
Dividends receivable | 5,392 | |
Distributions receivable from Fidelity Central Funds | 15 | |
Prepaid expenses | 42 | |
Other receivables | 860 | |
Total assets | 11,551,673 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 180,855 | |
Payable for fund shares redeemed | 18,727 | |
Accrued management fee | 6,763 | |
Other affiliated payables | 2,423 | |
Other payables and accrued expenses | 461 | |
Collateral on securities loaned, at value | 57,136 | |
Total liabilities | 266,365 | |
|
|
|
Net Assets | $ 11,285,308 | |
Net Assets consist of: |
| |
Paid in capital | $ 11,130,077 | |
Distributions in excess of net investment income | (5,532) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (1,538,477) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 1,699,240 | |
Net Assets | $ 11,285,308 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | January 31, 2010 (Unaudited) | |
Blue Chip Growth: | $ 35.90 | |
|
|
|
Class K: | $ 35.90 | |
|
|
|
Class F: | $ 35.92 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended January 31, 2010 (Unaudited) | |
Investment Income |
|
|
Dividends |
| $ 62,520 |
Interest |
| 1 |
Income from Fidelity Central Funds |
| 137 |
Total income |
| 62,658 |
|
|
|
Expenses | ||
Management fee | $ 31,814 | |
Performance adjustment | 4,705 | |
Transfer agent fees | 13,856 | |
Accounting and security lending fees | 766 | |
Custodian fees and expenses | 129 | |
Independent trustees' compensation | 34 | |
Registration fees | 68 | |
Audit | 48 | |
Legal | 48 | |
Interest | 4 | |
Miscellaneous | 102 | |
Total expenses before reductions | 51,574 | |
Expense reductions | (1,328) | 50,246 |
Net investment income (loss) | 12,412 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 618,313 | |
Other affiliated issuers | 141 |
|
Foreign currency transactions | (522) | |
Capital gain distributions from Fidelity Central Funds | 3 | |
Total net realized gain (loss) |
| 617,935 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 691,551 | |
Assets and liabilities in foreign currencies | (1) | |
Total change in net unrealized appreciation (depreciation) |
| 691,550 |
Net gain (loss) | 1,309,485 | |
Net increase (decrease) in net assets resulting from operations | $ 1,321,897 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended January 31, 2010 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 12,412 | $ 90,600 |
Net realized gain (loss) | 617,935 | (2,127,104) |
Change in net unrealized appreciation (depreciation) | 691,550 | (205,346) |
Net increase (decrease) in net assets resulting from operations | 1,321,897 | (2,241,850) |
Distributions to shareholders from net investment income | (57,433) | (99,426) |
Distributions to shareholders from net realized gain | - | (242,439) |
Total distributions | (57,433) | (341,865) |
Share transactions - net increase (decrease) | (260,943) | (483,151) |
Total increase (decrease) in net assets | 1,003,521 | (3,066,866) |
|
|
|
Net Assets | ||
Beginning of period | 10,281,787 | 13,348,653 |
End of period (including distributions in excess of net investment income of $5,532 and undistributed net investment income of $39,489, respectively) | $ 11,285,308 | $ 10,281,787 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Blue Chip Growth
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 31.97 | $ 39.06 | $ 46.88 | $ 41.54 | $ 42.60 | $ 38.72 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .04 | .27 | .35 | .32 | .23 | .42 G |
Net realized and unrealized gain (loss) | 4.07 | (6.36) | (2.89) | 6.19 | (1.06) | 3.85 |
Total from investment operations | 4.11 | (6.09) | (2.54) | 6.51 | (.83) | 4.27 |
Distributions from net investment income | (.18) | (.29) | (.33) | (.24) | (.23) | (.39) |
Distributions from net realized gain | - | (.71) | (4.95) | (.93) | - | - |
Total distributions | (.18) | (1.00) | (5.28) | (1.17) | (.23) | (.39) |
Net asset value, end of period | $ 35.90 | $ 31.97 | $ 39.06 | $ 46.88 | $ 41.54 | $ 42.60 |
Total Return B, C | 12.85% | (15.85)% | (6.30)% | 16.02% | (1.97)% | 11.08% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .92% A | .76% | .58% | .60% | .63% | .66% |
Expenses net of fee waivers, if any | .92% A | .76% | .58% | .60% | .63% | .66% |
Expenses net of all reductions | .90% A | .76% | .57% | .59% | .61% | .64% |
Net investment income (loss) | .21% A | .93% | .81% | .72% | .54% | 1.05% G |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 10,443 | $ 9,691 | $ 13,349 | $ 18,616 | $ 19,571 | $ 22,881 |
Portfolio turnover rate F | 118% A | 134% | 82% | 87% | 48% | 29% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a special dividend which amounted to $.20 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .56%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended January 31, 2010 | Years ended July 31, | |
(Unaudited) | 2009 | 2008 G | |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 32.01 | $ 39.07 | $ 41.81 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | .07 | .32 | .10 |
Net realized and unrealized gain (loss) | 4.07 | (6.33) | (2.84) |
Total from investment operations | 4.14 | (6.01) | (2.74) |
Distributions from net investment income | (.25) | (.34) | - |
Distributions from net realized gain | - | (.71) | - |
Total distributions | (.25) | (1.05) | - |
Net asset value, end of period | $ 35.90 | $ 32.01 | $ 39.07 |
Total Return B, C | 12.94% | (15.61)% | (6.55)% |
Ratios to Average Net Assets E, H |
|
|
|
Expenses before reductions | .72% A | .53% | .41% A |
Expenses net of fee waivers, if any | .72% A | .53% | .41% A |
Expenses net of all reductions | .70% A | .52% | .41% A |
Net investment income (loss) | .41% A | 1.16% | 1.09% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 715,457 | $ 590,673 | $ 93 |
Portfolio turnover rate F | 118% A | 134% | 82% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended January 31, 2010 | Years ended |
(Unaudited) | 2009 H | |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 31.98 | $ 29.16 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .08 | - J |
Net realized and unrealized gain (loss) | 4.08 | 2.82 G |
Total from investment operations | 4.16 | 2.82 |
Distributions from net investment income | (.22) | - |
Net asset value, end of period | $ 35.92 | $ 31.98 |
Total Return B, C | 13.02% | 9.67% |
Ratios to Average Net Assets E, I |
|
|
Expenses before reductions | .66% A | .51% A |
Expenses net of fee waivers, if any | .66% A | .51% A |
Expenses net of all reductions | .64% A | .51% A |
Net investment income (loss) | .46% A | (.05)% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 126,568 | $ 261 |
Portfolio turnover rate F | 118% A | 134% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
1. Organization.
Fidelity Blue Chip Growth Fund (the Fund) is a fund of Fidelity Securities Fund (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 Blue Chip Growth, Class K and Class F 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 commencement of Class K, The Fund began offering conversion privileges between Blue Chip Growth and Class K to eligible shareholders of Blue Chip Growth. In order to disclose class level financial information dollar amounts presented in the notes are unrounded. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
Semiannual Report
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
contracts, exchange-traded funds (ETFs), and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds ,including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, capital loss carryforwards, deferred trustees compensation and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,986,774,169 |
Gross unrealized depreciation | (332,341,589) |
Net unrealized appreciation (depreciation) | $ 1,654,432,580 |
|
|
Tax cost | $ 9,684,642,498 |
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $6,569,475,113 and $6,883,853,040, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class of the Fund, Blue Chip Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .64% of the Fund's average net assets.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of each class, except for Class F. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each applicable class were as follows:
| Amount | % of |
Blue Chip Growth | $ 13,656,769 | .26 |
Class K | 199,449 | .06 |
| $ 13,856,218 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $94,601 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily | Weighted Average Interest Rate | Interest |
Borrower | $ 9,630,179 | .40% | $ 4,195 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $21,866 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $126,090.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $1,327,694 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $309.
Semiannual Report
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Blue Chip Growth | $ 52,296,155 | $ 97,802,886 |
Class K | 4,902,403 | 1,622,768 |
Class F | 234,565 | - |
Total | $ 57,433,123 | $ 99,425,654 |
From net realized gain |
|
|
Blue Chip Growth | $ - | $ 242,437,464 |
Class K | - | 1,698 |
Class F | - | - |
Total | $ - | $ 242,439,162 |
A Distributions for Class F are for the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Blue Chip Growth |
|
|
|
|
Shares sold | 20,692,900 | 53,777,391 | $ 743,258,088 | $ 1,546,167,445 |
Conversion to Class K | (604,280) | (17,667,860) | (19,980,833) | (497,271,491) |
Reinvestment of distributions | 1,459,021 | 9,381,064 | 51,337,656 | 335,422,205 |
Shares redeemed | (33,783,279) | (84,149,947) | (1,213,954,019) | (2,387,026,199) |
Net increase (decrease) | (12,235,638) | (38,659,352) | $ (439,339,108) | $ (1,002,708,040) |
Class K |
|
|
|
|
Shares sold | 4,284,938 | 2,762,243 | $ 155,100,591 | $ 75,103,611 |
Conversion from Blue Chip Growth | 603,548 | 17,662,621 | 19,980,833 | 497,271,492 |
Reinvestment of distributions | 138,546 | 62,647 | 4,902,403 | 1,624,466 |
Shares redeemed | (3,555,438) | (2,034,629) | (131,436,116) | (54,677,110) |
Net increase (decrease) | 1,471,594 | 18,452,882 | $ 48,547,711 | $ 519,322,459 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Share Transactions - continued
| Shares | Dollars | ||
Six months ended January 31, 2010 B | Year ended | Six months ended January 31, 2010 B | Year ended | |
Class F |
|
|
|
|
Shares sold | 3,611,981 | 8,183 | $ 133,393,764 | $ 235,350 |
Reinvestment of distributions | 6,315 | - | 234,565 | - |
Shares redeemed | (102,686) | (10) | (3,781,670) | (294) |
Net increase (decrease) | 3,515,610 | 8,173 | $ 129,846,659 | $ 235,056 |
A Share transactions for Class F are for the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
B Conversion transactions for Class K and Blue Chip Growth are for the period August 1, 2009 through August 31, 2009.
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
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Fidelity Automated
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To review orders and mutual
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By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
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Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
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Semiannual Report
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Semiannual Report
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Semiannual Report
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BCF-USAN-0310 1.789282.107
Fidelity®
Blue Chip Growth
Fund -
Class F
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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 (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Blue Chip Growth | .92% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,128.50 | $ 4.94 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.57 | $ 4.69 |
Class K | .72% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,129.40 | $ 3.86 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.58 | $ 3.67 |
Class F | .66% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,130.20 | $ 3.54 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.88 | $ 3.36 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 5.1 | 5.0 |
Microsoft Corp. | 4.3 | 3.3 |
Google, Inc. Class A | 4.2 | 3.3 |
Hewlett-Packard Co. | 2.7 | 2.5 |
Procter & Gamble Co. | 2.7 | 1.3 |
Cisco Systems, Inc. | 2.1 | 3.3 |
The Coca-Cola Co. | 2.0 | 2.5 |
Wal-Mart Stores, Inc. | 1.8 | 2.5 |
Johnson & Johnson | 1.8 | 1.8 |
Amazon.com, Inc. | 1.8 | 1.5 |
| 28.5 | |
Top Five Market Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Information Technology | 36.4 | 33.6 |
Health Care | 13.1 | 14.3 |
Consumer Discretionary | 12.7 | 12.5 |
Consumer Staples | 11.4 | 13.1 |
Industrials | 9.1 | 9.3 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks 99.7% |
| ![]() | Stocks 99.9% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 7.7% |
| ** Foreign investments | 6.0% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.7% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.7% | |||
Auto Components - 0.5% | |||
Johnson Controls, Inc. | 1,733,600 | $ 48,246 | |
Tenneco, Inc. (a) | 532,900 | 9,422 | |
| 57,668 | ||
Automobiles - 0.2% | |||
Harley-Davidson, Inc. (c) | 1,061,500 | 24,139 | |
Diversified Consumer Services - 0.2% | |||
Coinstar, Inc. (a) | 134,200 | 3,466 | |
DeVry, Inc. | 99,000 | 6,045 | |
Sotheby's Class A (ltd. vtg.) | 508,000 | 11,806 | |
| 21,317 | ||
Hotels, Restaurants & Leisure - 2.5% | |||
Las Vegas Sands Corp. (a)(c) | 1,767,100 | 27,390 | |
Starbucks Corp. (a) | 5,904,400 | 128,657 | |
Starwood Hotels & Resorts Worldwide, Inc. | 2,509,374 | 83,612 | |
Wyndham Worldwide Corp. | 2,166,485 | 45,475 | |
| 285,134 | ||
Household Durables - 1.5% | |||
D.R. Horton, Inc. | 2,784,900 | 32,834 | |
Furniture Brands International, Inc. (a)(d) | 4,870,949 | 25,134 | |
KB Home | 571,600 | 8,734 | |
Pulte Homes, Inc. | 2,783,302 | 29,280 | |
Ryland Group, Inc. | 698,900 | 15,558 | |
Tempur-Pedic International, Inc. (a) | 437,600 | 10,892 | |
Toll Brothers, Inc. (a) | 1,347,800 | 24,894 | |
Tupperware Brands Corp. | 474,800 | 20,160 | |
| 167,486 | ||
Internet & Catalog Retail - 1.8% | |||
Amazon.com, Inc. (a) | 1,633,900 | 204,907 | |
Leisure Equipment & Products - 0.1% | |||
Brunswick Corp. | 1,330,400 | 14,275 | |
Media - 0.6% | |||
DIRECTV (a) | 1,093,100 | 33,176 | |
DreamWorks Animation SKG, Inc. Class A (a) | 705,888 | 27,487 | |
| 60,663 | ||
Multiline Retail - 1.9% | |||
Kohl's Corp. (a) | 373,200 | 18,798 | |
Target Corp. | 3,820,300 | 195,867 | |
| 214,665 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - 2.4% | |||
AnnTaylor Stores Corp. (a) | 2,676,800 | $ 33,621 | |
Guess?, Inc. | 674,800 | 26,796 | |
Home Depot, Inc. | 1,572,900 | 44,057 | |
Lowe's Companies, Inc. | 2,572,600 | 55,697 | |
Office Depot, Inc. (a) | 3,559,801 | 20,220 | |
RadioShack Corp. | 1,949,533 | 38,055 | |
Staples, Inc. | 2,225,400 | 52,208 | |
| 270,654 | ||
Textiles, Apparel & Luxury Goods - 1.0% | |||
Deckers Outdoor Corp. (a) | 212,973 | 20,908 | |
Liz Claiborne, Inc. (a)(c) | 4,169,517 | 20,306 | |
NIKE, Inc. Class B | 339,000 | 21,611 | |
Polo Ralph Lauren Corp. Class A | 562,300 | 46,109 | |
| 108,934 | ||
TOTAL CONSUMER DISCRETIONARY | 1,429,842 | ||
CONSUMER STAPLES - 11.4% | |||
Beverages - 2.6% | |||
Anheuser-Busch InBev SA NV | 225,127 | 11,234 | |
Dr Pepper Snapple Group, Inc. | 403,600 | 11,164 | |
PepsiCo, Inc. | 760,600 | 45,347 | |
The Coca-Cola Co. | 4,120,000 | 223,510 | |
| 291,255 | ||
Food & Staples Retailing - 3.7% | |||
Costco Wholesale Corp. | 1,292,700 | 74,240 | |
Kroger Co. | 1,087,800 | 23,312 | |
Wal-Mart Stores, Inc. | 3,899,355 | 208,343 | |
Walgreen Co. | 2,791,600 | 100,637 | |
Whole Foods Market, Inc. (a)(c) | 584,700 | 15,916 | |
| 422,448 | ||
Food Products - 0.5% | |||
Ausnutria Dairy Hunan Co. Ltd. Class H | 5,844,000 | 4,215 | |
Bunge Ltd. | 186,200 | 10,947 | |
General Mills, Inc. | 500,000 | 35,655 | |
| 50,817 | ||
Household Products - 2.7% | |||
Procter & Gamble Co. | 4,934,400 | 303,712 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Personal Products - 0.8% | |||
Avon Products, Inc. | 658,100 | $ 19,835 | |
Emami Ltd. Infrastructure Ltd. | 105,223 | 451 | |
Emami Ltd. | 315,669 | 3,427 | |
Estee Lauder Companies, Inc. Class A | 424,900 | 22,316 | |
NBTY, Inc. (a) | 907,700 | 40,420 | |
| 86,449 | ||
Tobacco - 1.1% | |||
Altria Group, Inc. | 1,801,600 | 35,780 | |
Philip Morris International, Inc. | 2,050,100 | 93,300 | |
| 129,080 | ||
TOTAL CONSUMER STAPLES | 1,283,761 | ||
ENERGY - 4.6% | |||
Energy Equipment & Services - 1.5% | |||
Baker Hughes, Inc. | 278,400 | 12,606 | |
Nabors Industries Ltd. (a) | 1,907,800 | 42,544 | |
Noble Corp. | 686,200 | 27,668 | |
Pride International, Inc. (a) | 976,500 | 28,904 | |
Schlumberger Ltd. | 665,700 | 42,245 | |
Smith International, Inc. | 201,500 | 6,109 | |
Weatherford International Ltd. (a) | 696,100 | 10,915 | |
| 170,991 | ||
Oil, Gas & Consumable Fuels - 3.1% | |||
Arch Coal, Inc. | 1,119,700 | 23,592 | |
CONSOL Energy, Inc. | 273,700 | 12,757 | |
EOG Resources, Inc. | 299,100 | 27,045 | |
Marathon Oil Corp. | 810,700 | 24,167 | |
Massey Energy Co. | 890,200 | 34,291 | |
Occidental Petroleum Corp. | 1,067,700 | 83,644 | |
Oil India Ltd. | 14,187 | 345 | |
Patriot Coal Corp. (a)(c) | 980,600 | 15,189 | |
Petrohawk Energy Corp. (a) | 2,695,300 | 60,186 | |
Southwestern Energy Co. (a) | 1,507,400 | 64,637 | |
| 345,853 | ||
TOTAL ENERGY | 516,844 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - 8.7% | |||
Capital Markets - 1.4% | |||
Goldman Sachs Group, Inc. | 177,200 | $ 26,353 | |
India Infoline Ltd. | 1,864,841 | 4,785 | |
Morgan Stanley | 4,844,500 | 129,736 | |
| 160,874 | ||
Commercial Banks - 1.3% | |||
Regions Financial Corp. | 1,893,900 | 12,026 | |
Sumitomo Mitsui Financial Group, Inc. | 234,300 | 7,618 | |
Wells Fargo & Co. | 4,586,900 | 130,406 | |
| 150,050 | ||
Consumer Finance - 0.4% | |||
American Express Co. | 1,296,100 | 48,811 | |
Diversified Financial Services - 3.4% | |||
Bank of America Corp. | 4,243,400 | 64,415 | |
Citigroup, Inc. | 18,707,700 | 62,110 | |
JPMorgan Chase & Co. | 3,082,100 | 120,017 | |
Moody's Corp. | 4,545,300 | 125,405 | |
NBH Holdings Corp. Class A (a)(e) | 444,100 | 8,882 | |
| 380,829 | ||
Insurance - 1.6% | |||
AFLAC, Inc. | 409,100 | 19,813 | |
Assured Guaranty Ltd. | 1,609,600 | 36,474 | |
Conseco, Inc. (a) | 2,457,700 | 11,699 | |
Genworth Financial, Inc. Class A (a) | 4,379,900 | 60,618 | |
Hartford Financial Services Group, Inc. | 964,194 | 23,131 | |
Lincoln National Corp. | 906,700 | 22,287 | |
| 174,022 | ||
Real Estate Management & Development - 0.6% | |||
Ackruti City Ltd. | 1,975,000 | 21,683 | |
Indiabulls Real Estate Ltd. (a) | 3,166,454 | 12,024 | |
Parsvnath Developers Ltd. (a) | 6,435,670 | 17,957 | |
Unitech Ltd. | 5,251,879 | 8,460 | |
| 60,124 | ||
TOTAL FINANCIALS | 974,710 | ||
HEALTH CARE - 13.1% | |||
Biotechnology - 2.9% | |||
Alkermes, Inc. (a) | 917,100 | 10,033 | |
Amylin Pharmaceuticals, Inc. (a) | 2,057,700 | 36,997 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
Biogen Idec, Inc. (a) | 538,000 | $ 28,912 | |
Cephalon, Inc. (a) | 945,600 | 60,367 | |
Dendreon Corp. (a) | 905,681 | 25,087 | |
Human Genome Sciences, Inc. (a) | 1,012,500 | 26,801 | |
ImmunoGen, Inc. (a) | 381,739 | 2,668 | |
Isis Pharmaceuticals, Inc. (a) | 212,000 | 2,366 | |
Medivation, Inc. (a) | 114,900 | 3,825 | |
Micromet, Inc. (a) | 1,048,020 | 8,143 | |
Myriad Genetics, Inc. (a) | 150,000 | 3,525 | |
Regeneron Pharmaceuticals, Inc. (a) | 401,700 | 10,709 | |
Vertex Pharmaceuticals, Inc. (a) | 2,868,300 | 110,143 | |
| 329,576 | ||
Health Care Equipment & Supplies - 0.9% | |||
CareFusion Corp. (a) | 436,000 | 11,227 | |
Covidien PLC | 1,514,000 | 76,548 | |
NuVasive, Inc. (a)(c) | 668,700 | 18,456 | |
| 106,231 | ||
Health Care Providers & Services - 3.3% | |||
Aetna, Inc. | 1,124,300 | 33,695 | |
CIGNA Corp. | 1,271,000 | 42,922 | |
Express Scripts, Inc. (a) | 1,614,200 | 135,367 | |
Medco Health Solutions, Inc. (a) | 2,027,300 | 124,638 | |
UnitedHealth Group, Inc. | 1,003,000 | 33,099 | |
| 369,721 | ||
Health Care Technology - 0.5% | |||
Allscripts-Misys Healthcare Solutions, Inc. (a) | 949,900 | 15,635 | |
athenahealth, Inc. (a) | 106,800 | 4,202 | |
Cerner Corp. (a) | 455,200 | 34,436 | |
| 54,273 | ||
Life Sciences Tools & Services - 0.6% | |||
Illumina, Inc. (a) | 300,000 | 11,007 | |
Life Technologies Corp. (a) | 1,028,900 | 51,147 | |
| 62,154 | ||
Pharmaceuticals - 4.9% | |||
Abbott Laboratories | 2,152,800 | 113,969 | |
Allergan, Inc. | 835,300 | 48,030 | |
Johnson & Johnson | 3,289,900 | 206,803 | |
King Pharmaceuticals, Inc. (a) | 1,416,900 | 17,017 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
Merck & Co., Inc. | 2,247,400 | $ 85,806 | |
Pfizer, Inc. | 4,571,400 | 85,302 | |
| 556,927 | ||
TOTAL HEALTH CARE | 1,478,882 | ||
INDUSTRIALS - 9.1% | |||
Aerospace & Defense - 1.3% | |||
Precision Castparts Corp. | 707,400 | 74,454 | |
Raytheon Co. | 484,400 | 25,397 | |
The Boeing Co. | 60,500 | 3,666 | |
United Technologies Corp. | 708,700 | 47,823 | |
| 151,340 | ||
Airlines - 2.0% | |||
AMR Corp. (a) | 2,615,100 | 18,096 | |
Continental Airlines, Inc. Class B (a) | 2,333,200 | 42,908 | |
Delta Air Lines, Inc. (a) | 6,857,400 | 83,866 | |
UAL Corp. (a) | 5,303,800 | 64,865 | |
US Airways Group, Inc. (a) | 2,235,000 | 11,868 | |
| 221,603 | ||
Building Products - 0.7% | |||
Masco Corp. | 3,641,700 | 49,381 | |
Owens Corning (a) | 1,126,400 | 28,982 | |
| 78,363 | ||
Commercial Services & Supplies - 0.8% | |||
Avery Dennison Corp. | 2,515,400 | 81,776 | |
Republic Services, Inc. | 211,700 | 5,671 | |
Waste Management, Inc. | 108,000 | 3,461 | |
| 90,908 | ||
Construction & Engineering - 0.5% | |||
Fluor Corp. | 654,500 | 29,675 | |
Jacobs Engineering Group, Inc. (a) | 779,271 | 29,449 | |
| 59,124 | ||
Industrial Conglomerates - 0.6% | |||
3M Co. | 795,000 | 63,990 | |
Machinery - 1.5% | |||
Caterpillar, Inc. | 301,900 | 15,771 | |
Cummins, Inc. | 583,600 | 26,355 | |
Danaher Corp. | 81,100 | 5,786 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Machinery - continued | |||
Ingersoll-Rand Co. Ltd. | 2,235,000 | $ 72,548 | |
PACCAR, Inc. | 1,474,700 | 53,133 | |
| 173,593 | ||
Professional Services - 0.2% | |||
Equifax, Inc. | 75,000 | 2,400 | |
Monster Worldwide, Inc. (a) | 1,416,086 | 22,077 | |
| 24,477 | ||
Road & Rail - 1.5% | |||
Avis Budget Group, Inc. (a) | 1,656,932 | 17,928 | |
CSX Corp. | 1,318,500 | 56,511 | |
Hertz Global Holdings, Inc. (a)(c) | 1,286,300 | 13,326 | |
Union Pacific Corp. | 1,319,100 | 79,806 | |
| 167,571 | ||
TOTAL INDUSTRIALS | 1,030,969 | ||
INFORMATION TECHNOLOGY - 36.4% | |||
Communications Equipment - 5.1% | |||
Cisco Systems, Inc. (a) | 10,627,100 | 238,791 | |
Emulex Corp. (a) | 1,519,000 | 17,074 | |
Palm, Inc. (a)(c) | 977,925 | 10,161 | |
QUALCOMM, Inc. | 4,716,400 | 184,836 | |
Research In Motion Ltd. (a) | 1,889,700 | 118,976 | |
| 569,838 | ||
Computers & Peripherals - 10.4% | |||
Apple, Inc. (a) | 2,993,900 | 575,183 | |
Hewlett-Packard Co. | 6,507,500 | 306,308 | |
NCR Corp. (a) | 3,703,800 | 44,334 | |
NetApp, Inc. (a) | 953,800 | 27,784 | |
QLogic Corp. (a) | 1,393,600 | 23,956 | |
SanDisk Corp. (a) | 1,617,687 | 41,122 | |
Seagate Technology | 7,078,700 | 118,427 | |
Western Digital Corp. (a) | 1,096,100 | 41,641 | |
| 1,178,755 | ||
Electronic Equipment & Components - 1.9% | |||
Agilent Technologies, Inc. | 6,278,400 | 175,984 | |
Tyco Electronics Ltd. | 1,337,925 | 33,288 | |
Vishay Intertechnology, Inc. (a) | 212,064 | 1,599 | |
| 210,871 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - 5.6% | |||
Akamai Technologies, Inc. (a) | 978,900 | $ 24,179 | |
Baidu.com, Inc. sponsored ADR (a) | 90,800 | 37,383 | |
eBay, Inc. (a) | 2,633,000 | 60,612 | |
Google, Inc. Class A (a) | 885,700 | 468,907 | |
Open Text Corp. (a) | 331,500 | 13,061 | |
Rackspace Hosting, Inc. (a) | 434,900 | 7,924 | |
Tencent Holdings Ltd. | 1,008,400 | 18,859 | |
| 630,925 | ||
IT Services - 2.0% | |||
Cognizant Technology Solutions Corp. Class A (a) | 1,260,900 | 55,051 | |
MasterCard, Inc. Class A | 369,600 | 92,363 | |
Visa, Inc. Class A | 976,300 | 80,086 | |
| 227,500 | ||
Semiconductors & Semiconductor Equipment - 3.9% | |||
Avago Technologies Ltd. | 2,996,200 | 52,074 | |
Cree, Inc. (a) | 523,900 | 29,291 | |
Integrated Device Technology, Inc. (a) | 4,218,209 | 23,917 | |
Intel Corp. | 3,661,000 | 71,023 | |
Lam Research Corp. (a) | 1,980,300 | 65,370 | |
Marvell Technology Group Ltd. (a) | 2,730,400 | 47,591 | |
Microsemi Corp. (a) | 3,916,000 | 58,505 | |
NVIDIA Corp. (a) | 6,187,730 | 95,229 | |
| 443,000 | ||
Software - 7.5% | |||
Adobe Systems, Inc. (a) | 1,376,700 | 44,467 | |
BMC Software, Inc. (a) | 864,400 | 33,400 | |
Check Point Software Technologies Ltd. (a) | 1,849,100 | 59,134 | |
Informatica Corp. (a) | 1,522,500 | 36,068 | |
Microsoft Corp. | 17,006,000 | 479,229 | |
Nuance Communications, Inc. (a) | 2,279,300 | 34,235 | |
Oracle Corp. | 1,973,500 | 45,509 | |
Red Hat, Inc. (a) | 2,064,700 | 56,201 | |
Salesforce.com, Inc. (a) | 15,000 | 953 | |
SuccessFactors, Inc. (a) | 199,100 | 3,245 | |
TiVo, Inc. (a) | 2,300,000 | 20,746 | |
VMware, Inc. Class A (a) | 758,500 | 34,443 | |
| 847,630 | ||
TOTAL INFORMATION TECHNOLOGY | 4,108,519 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - 3.3% | |||
Chemicals - 2.9% | |||
Air Products & Chemicals, Inc. | 689,400 | $ 52,367 | |
Airgas, Inc. | 243,500 | 10,290 | |
Albemarle Corp. | 1,485,800 | 53,073 | |
Dow Chemical Co. | 4,668,800 | 126,478 | |
Terra Industries, Inc. | 1,178,500 | 37,241 | |
The Mosaic Co. | 779,300 | 41,700 | |
| 321,149 | ||
Metals & Mining - 0.1% | |||
Freeport-McMoRan Copper & Gold, Inc. | 226,000 | 15,072 | |
Paper & Forest Products - 0.3% | |||
Louisiana-Pacific Corp. (a) | 2,684,000 | 19,083 | |
Weyerhaeuser Co. | 412,700 | 16,467 | |
| 35,550 | ||
TOTAL MATERIALS | 371,771 | ||
TELECOMMUNICATION SERVICES - 0.4% | |||
Wireless Telecommunication Services - 0.4% | |||
Sprint Nextel Corp. (a) | 14,597,000 | 47,878 | |
UTILITIES - 0.0% | |||
Electric Utilities - 0.0% | |||
KSK Energy Ventures Ltd. (a) | 541,418 | 2,121 | |
Independent Power Producers & Energy Traders - 0.0% | |||
Indiabulls Power Ltd. | 813,890 | 581 | |
TOTAL UTILITIES | 2,702 | ||
TOTAL COMMON STOCKS (Cost $9,546,716) | 11,245,878 | ||
Convertible Preferred Stocks - 0.1% | |||
|
|
|
|
FINANCIALS - 0.1% | |||
Diversified Financial Services - 0.1% | |||
Bank of America Corp. (Cost $11,625) | 775,000 | 11,703 | |
Money Market Funds - 0.7% | |||
Shares | Value (000s) | ||
Fidelity Cash Central Fund, 0.17% (f) | 24,358,300 | $ 24,358 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(f) | 57,136,075 | 57,136 | |
TOTAL MONEY MARKET FUNDS (Cost $81,494) | 81,494 | ||
TOTAL INVESTMENT PORTFOLIO - 100.5% (Cost $9,639,835) | 11,339,075 | ||
NET OTHER ASSETS - (0.5)% | (53,767) | ||
NET ASSETS - 100% | $ 11,285,308 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated company |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $8,882,000 or 0.1% of net assets. |
(f) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
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 | $ 11 |
Fidelity Securities Lending Cash Central Fund | 126 |
Total | $ 137 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
Furniture Brands International, Inc. | $ 19,567 | $ 202 | $ 274 | $ - | $ 25,134 |
Total | $ 19,567 | $ 202 | $ 274 | $ - | $ 25,134 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 1,429,842 | $ 1,429,842 | $ - | $ - |
Consumer Staples | 1,283,761 | 1,272,076 | 11,234 | 451 |
Energy | 516,844 | 516,844 | - | - |
Financials | 986,413 | 977,531 | - | 8,882 |
Health Care | 1,478,882 | 1,478,882 | - | - |
Industrials | 1,030,969 | 1,030,969 | - | - |
Information Technology | 4,108,519 | 4,108,519 | - | - |
Materials | 371,771 | 371,771 | - | - |
Telecommunication Services | 47,878 | 47,878 | - | - |
Utilities | 2,702 | 2,702 | - | - |
Money Market Funds | 81,494 | 81,494 | - | - |
Total Investments in Securities: | $ 11,339,075 | $ 11,318,508 | $ 11,234 | $ 9,333 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) |
|
Investments in Securities: | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 37 |
Cost of Purchases | 9,296 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in/out of Level 3 | - |
Ending Balance | $ 9,333 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2010 | $ 37 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $671,371,000 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $1,443,854,000 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2010 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $53,814) - See accompanying schedule: Unaffiliated issuers (cost $9,502,418) | $ 11,232,447 |
|
Fidelity Central Funds (cost $81,494) | 81,494 |
|
Other affiliated issuers (cost $55,923) | 25,134 |
|
Total Investments (cost $9,639,835) |
| $ 11,339,075 |
Receivable for investments sold | 193,429 | |
Receivable for fund shares sold | 12,860 | |
Dividends receivable | 5,392 | |
Distributions receivable from Fidelity Central Funds | 15 | |
Prepaid expenses | 42 | |
Other receivables | 860 | |
Total assets | 11,551,673 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 180,855 | |
Payable for fund shares redeemed | 18,727 | |
Accrued management fee | 6,763 | |
Other affiliated payables | 2,423 | |
Other payables and accrued expenses | 461 | |
Collateral on securities loaned, at value | 57,136 | |
Total liabilities | 266,365 | |
|
|
|
Net Assets | $ 11,285,308 | |
Net Assets consist of: |
| |
Paid in capital | $ 11,130,077 | |
Distributions in excess of net investment income | (5,532) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (1,538,477) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 1,699,240 | |
Net Assets | $ 11,285,308 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | January 31, 2010 (Unaudited) | |
Blue Chip Growth: | $ 35.90 | |
|
|
|
Class K: | $ 35.90 | |
|
|
|
Class F: | $ 35.92 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended January 31, 2010 (Unaudited) | |
Investment Income |
|
|
Dividends |
| $ 62,520 |
Interest |
| 1 |
Income from Fidelity Central Funds |
| 137 |
Total income |
| 62,658 |
|
|
|
Expenses | ||
Management fee | $ 31,814 | |
Performance adjustment | 4,705 | |
Transfer agent fees | 13,856 | |
Accounting and security lending fees | 766 | |
Custodian fees and expenses | 129 | |
Independent trustees' compensation | 34 | |
Registration fees | 68 | |
Audit | 48 | |
Legal | 48 | |
Interest | 4 | |
Miscellaneous | 102 | |
Total expenses before reductions | 51,574 | |
Expense reductions | (1,328) | 50,246 |
Net investment income (loss) | 12,412 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 618,313 | |
Other affiliated issuers | 141 |
|
Foreign currency transactions | (522) | |
Capital gain distributions from Fidelity Central Funds | 3 | |
Total net realized gain (loss) |
| 617,935 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 691,551 | |
Assets and liabilities in foreign currencies | (1) | |
Total change in net unrealized appreciation (depreciation) |
| 691,550 |
Net gain (loss) | 1,309,485 | |
Net increase (decrease) in net assets resulting from operations | $ 1,321,897 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended January 31, 2010 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 12,412 | $ 90,600 |
Net realized gain (loss) | 617,935 | (2,127,104) |
Change in net unrealized appreciation (depreciation) | 691,550 | (205,346) |
Net increase (decrease) in net assets resulting from operations | 1,321,897 | (2,241,850) |
Distributions to shareholders from net investment income | (57,433) | (99,426) |
Distributions to shareholders from net realized gain | - | (242,439) |
Total distributions | (57,433) | (341,865) |
Share transactions - net increase (decrease) | (260,943) | (483,151) |
Total increase (decrease) in net assets | 1,003,521 | (3,066,866) |
|
|
|
Net Assets | ||
Beginning of period | 10,281,787 | 13,348,653 |
End of period (including distributions in excess of net investment income of $5,532 and undistributed net investment income of $39,489, respectively) | $ 11,285,308 | $ 10,281,787 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Blue Chip Growth
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 31.97 | $ 39.06 | $ 46.88 | $ 41.54 | $ 42.60 | $ 38.72 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .04 | .27 | .35 | .32 | .23 | .42 G |
Net realized and unrealized gain (loss) | 4.07 | (6.36) | (2.89) | 6.19 | (1.06) | 3.85 |
Total from investment operations | 4.11 | (6.09) | (2.54) | 6.51 | (.83) | 4.27 |
Distributions from net investment income | (.18) | (.29) | (.33) | (.24) | (.23) | (.39) |
Distributions from net realized gain | - | (.71) | (4.95) | (.93) | - | - |
Total distributions | (.18) | (1.00) | (5.28) | (1.17) | (.23) | (.39) |
Net asset value, end of period | $ 35.90 | $ 31.97 | $ 39.06 | $ 46.88 | $ 41.54 | $ 42.60 |
Total Return B, C | 12.85% | (15.85)% | (6.30)% | 16.02% | (1.97)% | 11.08% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .92% A | .76% | .58% | .60% | .63% | .66% |
Expenses net of fee waivers, if any | .92% A | .76% | .58% | .60% | .63% | .66% |
Expenses net of all reductions | .90% A | .76% | .57% | .59% | .61% | .64% |
Net investment income (loss) | .21% A | .93% | .81% | .72% | .54% | 1.05% G |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 10,443 | $ 9,691 | $ 13,349 | $ 18,616 | $ 19,571 | $ 22,881 |
Portfolio turnover rate F | 118% A | 134% | 82% | 87% | 48% | 29% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a special dividend which amounted to $.20 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .56%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended January 31, 2010 | Years ended July 31, | |
(Unaudited) | 2009 | 2008 G | |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 32.01 | $ 39.07 | $ 41.81 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | .07 | .32 | .10 |
Net realized and unrealized gain (loss) | 4.07 | (6.33) | (2.84) |
Total from investment operations | 4.14 | (6.01) | (2.74) |
Distributions from net investment income | (.25) | (.34) | - |
Distributions from net realized gain | - | (.71) | - |
Total distributions | (.25) | (1.05) | - |
Net asset value, end of period | $ 35.90 | $ 32.01 | $ 39.07 |
Total Return B, C | 12.94% | (15.61)% | (6.55)% |
Ratios to Average Net Assets E, H |
|
|
|
Expenses before reductions | .72% A | .53% | .41% A |
Expenses net of fee waivers, if any | .72% A | .53% | .41% A |
Expenses net of all reductions | .70% A | .52% | .41% A |
Net investment income (loss) | .41% A | 1.16% | 1.09% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 715,457 | $ 590,673 | $ 93 |
Portfolio turnover rate F | 118% A | 134% | 82% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended January 31, 2010 | Years ended |
(Unaudited) | 2009 H | |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 31.98 | $ 29.16 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .08 | - J |
Net realized and unrealized gain (loss) | 4.08 | 2.82 G |
Total from investment operations | 4.16 | 2.82 |
Distributions from net investment income | (.22) | - |
Net asset value, end of period | $ 35.92 | $ 31.98 |
Total Return B, C | 13.02% | 9.67% |
Ratios to Average Net Assets E, I |
|
|
Expenses before reductions | .66% A | .51% A |
Expenses net of fee waivers, if any | .66% A | .51% A |
Expenses net of all reductions | .64% A | .51% A |
Net investment income (loss) | .46% A | (.05)% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 126,568 | $ 261 |
Portfolio turnover rate F | 118% A | 134% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
1. Organization.
Fidelity Blue Chip Growth Fund (the Fund) is a fund of Fidelity Securities Fund (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 Blue Chip Growth, Class K and Class F 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 commencement of Class K, The Fund began offering conversion privileges between Blue Chip Growth and Class K to eligible shareholders of Blue Chip Growth. In order to disclose class level financial information dollar amounts presented in the notes are unrounded. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
Semiannual Report
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
contracts, exchange-traded funds (ETFs), and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds ,including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, capital loss carryforwards, deferred trustees compensation and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,986,774,169 |
Gross unrealized depreciation | (332,341,589) |
Net unrealized appreciation (depreciation) | $ 1,654,432,580 |
|
|
Tax cost | $ 9,684,642,498 |
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $6,569,475,113 and $6,883,853,040, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class of the Fund, Blue Chip Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .64% of the Fund's average net assets.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of each class, except for Class F. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each applicable class were as follows:
| Amount | % of |
Blue Chip Growth | $ 13,656,769 | .26 |
Class K | 199,449 | .06 |
| $ 13,856,218 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $94,601 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily | Weighted Average Interest Rate | Interest |
Borrower | $ 9,630,179 | .40% | $ 4,195 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $21,866 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $126,090.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $1,327,694 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $309.
Semiannual Report
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Blue Chip Growth | $ 52,296,155 | $ 97,802,886 |
Class K | 4,902,403 | 1,622,768 |
Class F | 234,565 | - |
Total | $ 57,433,123 | $ 99,425,654 |
From net realized gain |
|
|
Blue Chip Growth | $ - | $ 242,437,464 |
Class K | - | 1,698 |
Class F | - | - |
Total | $ - | $ 242,439,162 |
A Distributions for Class F are for the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Blue Chip Growth |
|
|
|
|
Shares sold | 20,692,900 | 53,777,391 | $ 743,258,088 | $ 1,546,167,445 |
Conversion to Class K | (604,280) | (17,667,860) | (19,980,833) | (497,271,491) |
Reinvestment of distributions | 1,459,021 | 9,381,064 | 51,337,656 | 335,422,205 |
Shares redeemed | (33,783,279) | (84,149,947) | (1,213,954,019) | (2,387,026,199) |
Net increase (decrease) | (12,235,638) | (38,659,352) | $ (439,339,108) | $ (1,002,708,040) |
Class K |
|
|
|
|
Shares sold | 4,284,938 | 2,762,243 | $ 155,100,591 | $ 75,103,611 |
Conversion from Blue Chip Growth | 603,548 | 17,662,621 | 19,980,833 | 497,271,492 |
Reinvestment of distributions | 138,546 | 62,647 | 4,902,403 | 1,624,466 |
Shares redeemed | (3,555,438) | (2,034,629) | (131,436,116) | (54,677,110) |
Net increase (decrease) | 1,471,594 | 18,452,882 | $ 48,547,711 | $ 519,322,459 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Share Transactions - continued
| Shares | Dollars | ||
Six months ended January 31, 2010 B | Year ended | Six months ended January 31, 2010 B | Year ended | |
Class F |
|
|
|
|
Shares sold | 3,611,981 | 8,183 | $ 133,393,764 | $ 235,350 |
Reinvestment of distributions | 6,315 | - | 234,565 | - |
Shares redeemed | (102,686) | (10) | (3,781,670) | (294) |
Net increase (decrease) | 3,515,610 | 8,173 | $ 129,846,659 | $ 235,056 |
A Share transactions for Class F are for the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
B Conversion transactions for Class K and Blue Chip Growth are for the period August 1, 2009 through August 31, 2009.
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Managing Your Investments
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(computer_graphic)
Fidelity's Web Site
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* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
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For Retirement
Accounts
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Fidelity Investments
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Selling shares
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Cincinnati, OH 45277-0035
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Fidelity Investments
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General Correspondence
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Semiannual Report
Investment Adviser
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BCF-F-SANN-0310 1.891666.100
Fidelity®
Blue Chip Growth
Fund -
Class K
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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 (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Blue Chip Growth | .92% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,128.50 | $ 4.94 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.57 | $ 4.69 |
Class K | .72% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,129.40 | $ 3.86 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.58 | $ 3.67 |
Class F | .66% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,130.20 | $ 3.54 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.88 | $ 3.36 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 5.1 | 5.0 |
Microsoft Corp. | 4.3 | 3.3 |
Google, Inc. Class A | 4.2 | 3.3 |
Hewlett-Packard Co. | 2.7 | 2.5 |
Procter & Gamble Co. | 2.7 | 1.3 |
Cisco Systems, Inc. | 2.1 | 3.3 |
The Coca-Cola Co. | 2.0 | 2.5 |
Wal-Mart Stores, Inc. | 1.8 | 2.5 |
Johnson & Johnson | 1.8 | 1.8 |
Amazon.com, Inc. | 1.8 | 1.5 |
| 28.5 | |
Top Five Market Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Information Technology | 36.4 | 33.6 |
Health Care | 13.1 | 14.3 |
Consumer Discretionary | 12.7 | 12.5 |
Consumer Staples | 11.4 | 13.1 |
Industrials | 9.1 | 9.3 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks 99.7% |
| ![]() | Stocks 99.9% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 7.7% |
| ** Foreign investments | 6.0% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.7% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.7% | |||
Auto Components - 0.5% | |||
Johnson Controls, Inc. | 1,733,600 | $ 48,246 | |
Tenneco, Inc. (a) | 532,900 | 9,422 | |
| 57,668 | ||
Automobiles - 0.2% | |||
Harley-Davidson, Inc. (c) | 1,061,500 | 24,139 | |
Diversified Consumer Services - 0.2% | |||
Coinstar, Inc. (a) | 134,200 | 3,466 | |
DeVry, Inc. | 99,000 | 6,045 | |
Sotheby's Class A (ltd. vtg.) | 508,000 | 11,806 | |
| 21,317 | ||
Hotels, Restaurants & Leisure - 2.5% | |||
Las Vegas Sands Corp. (a)(c) | 1,767,100 | 27,390 | |
Starbucks Corp. (a) | 5,904,400 | 128,657 | |
Starwood Hotels & Resorts Worldwide, Inc. | 2,509,374 | 83,612 | |
Wyndham Worldwide Corp. | 2,166,485 | 45,475 | |
| 285,134 | ||
Household Durables - 1.5% | |||
D.R. Horton, Inc. | 2,784,900 | 32,834 | |
Furniture Brands International, Inc. (a)(d) | 4,870,949 | 25,134 | |
KB Home | 571,600 | 8,734 | |
Pulte Homes, Inc. | 2,783,302 | 29,280 | |
Ryland Group, Inc. | 698,900 | 15,558 | |
Tempur-Pedic International, Inc. (a) | 437,600 | 10,892 | |
Toll Brothers, Inc. (a) | 1,347,800 | 24,894 | |
Tupperware Brands Corp. | 474,800 | 20,160 | |
| 167,486 | ||
Internet & Catalog Retail - 1.8% | |||
Amazon.com, Inc. (a) | 1,633,900 | 204,907 | |
Leisure Equipment & Products - 0.1% | |||
Brunswick Corp. | 1,330,400 | 14,275 | |
Media - 0.6% | |||
DIRECTV (a) | 1,093,100 | 33,176 | |
DreamWorks Animation SKG, Inc. Class A (a) | 705,888 | 27,487 | |
| 60,663 | ||
Multiline Retail - 1.9% | |||
Kohl's Corp. (a) | 373,200 | 18,798 | |
Target Corp. | 3,820,300 | 195,867 | |
| 214,665 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - 2.4% | |||
AnnTaylor Stores Corp. (a) | 2,676,800 | $ 33,621 | |
Guess?, Inc. | 674,800 | 26,796 | |
Home Depot, Inc. | 1,572,900 | 44,057 | |
Lowe's Companies, Inc. | 2,572,600 | 55,697 | |
Office Depot, Inc. (a) | 3,559,801 | 20,220 | |
RadioShack Corp. | 1,949,533 | 38,055 | |
Staples, Inc. | 2,225,400 | 52,208 | |
| 270,654 | ||
Textiles, Apparel & Luxury Goods - 1.0% | |||
Deckers Outdoor Corp. (a) | 212,973 | 20,908 | |
Liz Claiborne, Inc. (a)(c) | 4,169,517 | 20,306 | |
NIKE, Inc. Class B | 339,000 | 21,611 | |
Polo Ralph Lauren Corp. Class A | 562,300 | 46,109 | |
| 108,934 | ||
TOTAL CONSUMER DISCRETIONARY | 1,429,842 | ||
CONSUMER STAPLES - 11.4% | |||
Beverages - 2.6% | |||
Anheuser-Busch InBev SA NV | 225,127 | 11,234 | |
Dr Pepper Snapple Group, Inc. | 403,600 | 11,164 | |
PepsiCo, Inc. | 760,600 | 45,347 | |
The Coca-Cola Co. | 4,120,000 | 223,510 | |
| 291,255 | ||
Food & Staples Retailing - 3.7% | |||
Costco Wholesale Corp. | 1,292,700 | 74,240 | |
Kroger Co. | 1,087,800 | 23,312 | |
Wal-Mart Stores, Inc. | 3,899,355 | 208,343 | |
Walgreen Co. | 2,791,600 | 100,637 | |
Whole Foods Market, Inc. (a)(c) | 584,700 | 15,916 | |
| 422,448 | ||
Food Products - 0.5% | |||
Ausnutria Dairy Hunan Co. Ltd. Class H | 5,844,000 | 4,215 | |
Bunge Ltd. | 186,200 | 10,947 | |
General Mills, Inc. | 500,000 | 35,655 | |
| 50,817 | ||
Household Products - 2.7% | |||
Procter & Gamble Co. | 4,934,400 | 303,712 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Personal Products - 0.8% | |||
Avon Products, Inc. | 658,100 | $ 19,835 | |
Emami Ltd. Infrastructure Ltd. | 105,223 | 451 | |
Emami Ltd. | 315,669 | 3,427 | |
Estee Lauder Companies, Inc. Class A | 424,900 | 22,316 | |
NBTY, Inc. (a) | 907,700 | 40,420 | |
| 86,449 | ||
Tobacco - 1.1% | |||
Altria Group, Inc. | 1,801,600 | 35,780 | |
Philip Morris International, Inc. | 2,050,100 | 93,300 | |
| 129,080 | ||
TOTAL CONSUMER STAPLES | 1,283,761 | ||
ENERGY - 4.6% | |||
Energy Equipment & Services - 1.5% | |||
Baker Hughes, Inc. | 278,400 | 12,606 | |
Nabors Industries Ltd. (a) | 1,907,800 | 42,544 | |
Noble Corp. | 686,200 | 27,668 | |
Pride International, Inc. (a) | 976,500 | 28,904 | |
Schlumberger Ltd. | 665,700 | 42,245 | |
Smith International, Inc. | 201,500 | 6,109 | |
Weatherford International Ltd. (a) | 696,100 | 10,915 | |
| 170,991 | ||
Oil, Gas & Consumable Fuels - 3.1% | |||
Arch Coal, Inc. | 1,119,700 | 23,592 | |
CONSOL Energy, Inc. | 273,700 | 12,757 | |
EOG Resources, Inc. | 299,100 | 27,045 | |
Marathon Oil Corp. | 810,700 | 24,167 | |
Massey Energy Co. | 890,200 | 34,291 | |
Occidental Petroleum Corp. | 1,067,700 | 83,644 | |
Oil India Ltd. | 14,187 | 345 | |
Patriot Coal Corp. (a)(c) | 980,600 | 15,189 | |
Petrohawk Energy Corp. (a) | 2,695,300 | 60,186 | |
Southwestern Energy Co. (a) | 1,507,400 | 64,637 | |
| 345,853 | ||
TOTAL ENERGY | 516,844 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - 8.7% | |||
Capital Markets - 1.4% | |||
Goldman Sachs Group, Inc. | 177,200 | $ 26,353 | |
India Infoline Ltd. | 1,864,841 | 4,785 | |
Morgan Stanley | 4,844,500 | 129,736 | |
| 160,874 | ||
Commercial Banks - 1.3% | |||
Regions Financial Corp. | 1,893,900 | 12,026 | |
Sumitomo Mitsui Financial Group, Inc. | 234,300 | 7,618 | |
Wells Fargo & Co. | 4,586,900 | 130,406 | |
| 150,050 | ||
Consumer Finance - 0.4% | |||
American Express Co. | 1,296,100 | 48,811 | |
Diversified Financial Services - 3.4% | |||
Bank of America Corp. | 4,243,400 | 64,415 | |
Citigroup, Inc. | 18,707,700 | 62,110 | |
JPMorgan Chase & Co. | 3,082,100 | 120,017 | |
Moody's Corp. | 4,545,300 | 125,405 | |
NBH Holdings Corp. Class A (a)(e) | 444,100 | 8,882 | |
| 380,829 | ||
Insurance - 1.6% | |||
AFLAC, Inc. | 409,100 | 19,813 | |
Assured Guaranty Ltd. | 1,609,600 | 36,474 | |
Conseco, Inc. (a) | 2,457,700 | 11,699 | |
Genworth Financial, Inc. Class A (a) | 4,379,900 | 60,618 | |
Hartford Financial Services Group, Inc. | 964,194 | 23,131 | |
Lincoln National Corp. | 906,700 | 22,287 | |
| 174,022 | ||
Real Estate Management & Development - 0.6% | |||
Ackruti City Ltd. | 1,975,000 | 21,683 | |
Indiabulls Real Estate Ltd. (a) | 3,166,454 | 12,024 | |
Parsvnath Developers Ltd. (a) | 6,435,670 | 17,957 | |
Unitech Ltd. | 5,251,879 | 8,460 | |
| 60,124 | ||
TOTAL FINANCIALS | 974,710 | ||
HEALTH CARE - 13.1% | |||
Biotechnology - 2.9% | |||
Alkermes, Inc. (a) | 917,100 | 10,033 | |
Amylin Pharmaceuticals, Inc. (a) | 2,057,700 | 36,997 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
Biogen Idec, Inc. (a) | 538,000 | $ 28,912 | |
Cephalon, Inc. (a) | 945,600 | 60,367 | |
Dendreon Corp. (a) | 905,681 | 25,087 | |
Human Genome Sciences, Inc. (a) | 1,012,500 | 26,801 | |
ImmunoGen, Inc. (a) | 381,739 | 2,668 | |
Isis Pharmaceuticals, Inc. (a) | 212,000 | 2,366 | |
Medivation, Inc. (a) | 114,900 | 3,825 | |
Micromet, Inc. (a) | 1,048,020 | 8,143 | |
Myriad Genetics, Inc. (a) | 150,000 | 3,525 | |
Regeneron Pharmaceuticals, Inc. (a) | 401,700 | 10,709 | |
Vertex Pharmaceuticals, Inc. (a) | 2,868,300 | 110,143 | |
| 329,576 | ||
Health Care Equipment & Supplies - 0.9% | |||
CareFusion Corp. (a) | 436,000 | 11,227 | |
Covidien PLC | 1,514,000 | 76,548 | |
NuVasive, Inc. (a)(c) | 668,700 | 18,456 | |
| 106,231 | ||
Health Care Providers & Services - 3.3% | |||
Aetna, Inc. | 1,124,300 | 33,695 | |
CIGNA Corp. | 1,271,000 | 42,922 | |
Express Scripts, Inc. (a) | 1,614,200 | 135,367 | |
Medco Health Solutions, Inc. (a) | 2,027,300 | 124,638 | |
UnitedHealth Group, Inc. | 1,003,000 | 33,099 | |
| 369,721 | ||
Health Care Technology - 0.5% | |||
Allscripts-Misys Healthcare Solutions, Inc. (a) | 949,900 | 15,635 | |
athenahealth, Inc. (a) | 106,800 | 4,202 | |
Cerner Corp. (a) | 455,200 | 34,436 | |
| 54,273 | ||
Life Sciences Tools & Services - 0.6% | |||
Illumina, Inc. (a) | 300,000 | 11,007 | |
Life Technologies Corp. (a) | 1,028,900 | 51,147 | |
| 62,154 | ||
Pharmaceuticals - 4.9% | |||
Abbott Laboratories | 2,152,800 | 113,969 | |
Allergan, Inc. | 835,300 | 48,030 | |
Johnson & Johnson | 3,289,900 | 206,803 | |
King Pharmaceuticals, Inc. (a) | 1,416,900 | 17,017 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
Merck & Co., Inc. | 2,247,400 | $ 85,806 | |
Pfizer, Inc. | 4,571,400 | 85,302 | |
| 556,927 | ||
TOTAL HEALTH CARE | 1,478,882 | ||
INDUSTRIALS - 9.1% | |||
Aerospace & Defense - 1.3% | |||
Precision Castparts Corp. | 707,400 | 74,454 | |
Raytheon Co. | 484,400 | 25,397 | |
The Boeing Co. | 60,500 | 3,666 | |
United Technologies Corp. | 708,700 | 47,823 | |
| 151,340 | ||
Airlines - 2.0% | |||
AMR Corp. (a) | 2,615,100 | 18,096 | |
Continental Airlines, Inc. Class B (a) | 2,333,200 | 42,908 | |
Delta Air Lines, Inc. (a) | 6,857,400 | 83,866 | |
UAL Corp. (a) | 5,303,800 | 64,865 | |
US Airways Group, Inc. (a) | 2,235,000 | 11,868 | |
| 221,603 | ||
Building Products - 0.7% | |||
Masco Corp. | 3,641,700 | 49,381 | |
Owens Corning (a) | 1,126,400 | 28,982 | |
| 78,363 | ||
Commercial Services & Supplies - 0.8% | |||
Avery Dennison Corp. | 2,515,400 | 81,776 | |
Republic Services, Inc. | 211,700 | 5,671 | |
Waste Management, Inc. | 108,000 | 3,461 | |
| 90,908 | ||
Construction & Engineering - 0.5% | |||
Fluor Corp. | 654,500 | 29,675 | |
Jacobs Engineering Group, Inc. (a) | 779,271 | 29,449 | |
| 59,124 | ||
Industrial Conglomerates - 0.6% | |||
3M Co. | 795,000 | 63,990 | |
Machinery - 1.5% | |||
Caterpillar, Inc. | 301,900 | 15,771 | |
Cummins, Inc. | 583,600 | 26,355 | |
Danaher Corp. | 81,100 | 5,786 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Machinery - continued | |||
Ingersoll-Rand Co. Ltd. | 2,235,000 | $ 72,548 | |
PACCAR, Inc. | 1,474,700 | 53,133 | |
| 173,593 | ||
Professional Services - 0.2% | |||
Equifax, Inc. | 75,000 | 2,400 | |
Monster Worldwide, Inc. (a) | 1,416,086 | 22,077 | |
| 24,477 | ||
Road & Rail - 1.5% | |||
Avis Budget Group, Inc. (a) | 1,656,932 | 17,928 | |
CSX Corp. | 1,318,500 | 56,511 | |
Hertz Global Holdings, Inc. (a)(c) | 1,286,300 | 13,326 | |
Union Pacific Corp. | 1,319,100 | 79,806 | |
| 167,571 | ||
TOTAL INDUSTRIALS | 1,030,969 | ||
INFORMATION TECHNOLOGY - 36.4% | |||
Communications Equipment - 5.1% | |||
Cisco Systems, Inc. (a) | 10,627,100 | 238,791 | |
Emulex Corp. (a) | 1,519,000 | 17,074 | |
Palm, Inc. (a)(c) | 977,925 | 10,161 | |
QUALCOMM, Inc. | 4,716,400 | 184,836 | |
Research In Motion Ltd. (a) | 1,889,700 | 118,976 | |
| 569,838 | ||
Computers & Peripherals - 10.4% | |||
Apple, Inc. (a) | 2,993,900 | 575,183 | |
Hewlett-Packard Co. | 6,507,500 | 306,308 | |
NCR Corp. (a) | 3,703,800 | 44,334 | |
NetApp, Inc. (a) | 953,800 | 27,784 | |
QLogic Corp. (a) | 1,393,600 | 23,956 | |
SanDisk Corp. (a) | 1,617,687 | 41,122 | |
Seagate Technology | 7,078,700 | 118,427 | |
Western Digital Corp. (a) | 1,096,100 | 41,641 | |
| 1,178,755 | ||
Electronic Equipment & Components - 1.9% | |||
Agilent Technologies, Inc. | 6,278,400 | 175,984 | |
Tyco Electronics Ltd. | 1,337,925 | 33,288 | |
Vishay Intertechnology, Inc. (a) | 212,064 | 1,599 | |
| 210,871 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - 5.6% | |||
Akamai Technologies, Inc. (a) | 978,900 | $ 24,179 | |
Baidu.com, Inc. sponsored ADR (a) | 90,800 | 37,383 | |
eBay, Inc. (a) | 2,633,000 | 60,612 | |
Google, Inc. Class A (a) | 885,700 | 468,907 | |
Open Text Corp. (a) | 331,500 | 13,061 | |
Rackspace Hosting, Inc. (a) | 434,900 | 7,924 | |
Tencent Holdings Ltd. | 1,008,400 | 18,859 | |
| 630,925 | ||
IT Services - 2.0% | |||
Cognizant Technology Solutions Corp. Class A (a) | 1,260,900 | 55,051 | |
MasterCard, Inc. Class A | 369,600 | 92,363 | |
Visa, Inc. Class A | 976,300 | 80,086 | |
| 227,500 | ||
Semiconductors & Semiconductor Equipment - 3.9% | |||
Avago Technologies Ltd. | 2,996,200 | 52,074 | |
Cree, Inc. (a) | 523,900 | 29,291 | |
Integrated Device Technology, Inc. (a) | 4,218,209 | 23,917 | |
Intel Corp. | 3,661,000 | 71,023 | |
Lam Research Corp. (a) | 1,980,300 | 65,370 | |
Marvell Technology Group Ltd. (a) | 2,730,400 | 47,591 | |
Microsemi Corp. (a) | 3,916,000 | 58,505 | |
NVIDIA Corp. (a) | 6,187,730 | 95,229 | |
| 443,000 | ||
Software - 7.5% | |||
Adobe Systems, Inc. (a) | 1,376,700 | 44,467 | |
BMC Software, Inc. (a) | 864,400 | 33,400 | |
Check Point Software Technologies Ltd. (a) | 1,849,100 | 59,134 | |
Informatica Corp. (a) | 1,522,500 | 36,068 | |
Microsoft Corp. | 17,006,000 | 479,229 | |
Nuance Communications, Inc. (a) | 2,279,300 | 34,235 | |
Oracle Corp. | 1,973,500 | 45,509 | |
Red Hat, Inc. (a) | 2,064,700 | 56,201 | |
Salesforce.com, Inc. (a) | 15,000 | 953 | |
SuccessFactors, Inc. (a) | 199,100 | 3,245 | |
TiVo, Inc. (a) | 2,300,000 | 20,746 | |
VMware, Inc. Class A (a) | 758,500 | 34,443 | |
| 847,630 | ||
TOTAL INFORMATION TECHNOLOGY | 4,108,519 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - 3.3% | |||
Chemicals - 2.9% | |||
Air Products & Chemicals, Inc. | 689,400 | $ 52,367 | |
Airgas, Inc. | 243,500 | 10,290 | |
Albemarle Corp. | 1,485,800 | 53,073 | |
Dow Chemical Co. | 4,668,800 | 126,478 | |
Terra Industries, Inc. | 1,178,500 | 37,241 | |
The Mosaic Co. | 779,300 | 41,700 | |
| 321,149 | ||
Metals & Mining - 0.1% | |||
Freeport-McMoRan Copper & Gold, Inc. | 226,000 | 15,072 | |
Paper & Forest Products - 0.3% | |||
Louisiana-Pacific Corp. (a) | 2,684,000 | 19,083 | |
Weyerhaeuser Co. | 412,700 | 16,467 | |
| 35,550 | ||
TOTAL MATERIALS | 371,771 | ||
TELECOMMUNICATION SERVICES - 0.4% | |||
Wireless Telecommunication Services - 0.4% | |||
Sprint Nextel Corp. (a) | 14,597,000 | 47,878 | |
UTILITIES - 0.0% | |||
Electric Utilities - 0.0% | |||
KSK Energy Ventures Ltd. (a) | 541,418 | 2,121 | |
Independent Power Producers & Energy Traders - 0.0% | |||
Indiabulls Power Ltd. | 813,890 | 581 | |
TOTAL UTILITIES | 2,702 | ||
TOTAL COMMON STOCKS (Cost $9,546,716) | 11,245,878 | ||
Convertible Preferred Stocks - 0.1% | |||
|
|
|
|
FINANCIALS - 0.1% | |||
Diversified Financial Services - 0.1% | |||
Bank of America Corp. (Cost $11,625) | 775,000 | 11,703 | |
Money Market Funds - 0.7% | |||
Shares | Value (000s) | ||
Fidelity Cash Central Fund, 0.17% (f) | 24,358,300 | $ 24,358 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(f) | 57,136,075 | 57,136 | |
TOTAL MONEY MARKET FUNDS (Cost $81,494) | 81,494 | ||
TOTAL INVESTMENT PORTFOLIO - 100.5% (Cost $9,639,835) | 11,339,075 | ||
NET OTHER ASSETS - (0.5)% | (53,767) | ||
NET ASSETS - 100% | $ 11,285,308 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated company |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $8,882,000 or 0.1% of net assets. |
(f) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
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 | $ 11 |
Fidelity Securities Lending Cash Central Fund | 126 |
Total | $ 137 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
Furniture Brands International, Inc. | $ 19,567 | $ 202 | $ 274 | $ - | $ 25,134 |
Total | $ 19,567 | $ 202 | $ 274 | $ - | $ 25,134 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 1,429,842 | $ 1,429,842 | $ - | $ - |
Consumer Staples | 1,283,761 | 1,272,076 | 11,234 | 451 |
Energy | 516,844 | 516,844 | - | - |
Financials | 986,413 | 977,531 | - | 8,882 |
Health Care | 1,478,882 | 1,478,882 | - | - |
Industrials | 1,030,969 | 1,030,969 | - | - |
Information Technology | 4,108,519 | 4,108,519 | - | - |
Materials | 371,771 | 371,771 | - | - |
Telecommunication Services | 47,878 | 47,878 | - | - |
Utilities | 2,702 | 2,702 | - | - |
Money Market Funds | 81,494 | 81,494 | - | - |
Total Investments in Securities: | $ 11,339,075 | $ 11,318,508 | $ 11,234 | $ 9,333 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) |
|
Investments in Securities: | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 37 |
Cost of Purchases | 9,296 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in/out of Level 3 | - |
Ending Balance | $ 9,333 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2010 | $ 37 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $671,371,000 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $1,443,854,000 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2010 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $53,814) - See accompanying schedule: Unaffiliated issuers (cost $9,502,418) | $ 11,232,447 |
|
Fidelity Central Funds (cost $81,494) | 81,494 |
|
Other affiliated issuers (cost $55,923) | 25,134 |
|
Total Investments (cost $9,639,835) |
| $ 11,339,075 |
Receivable for investments sold | 193,429 | |
Receivable for fund shares sold | 12,860 | |
Dividends receivable | 5,392 | |
Distributions receivable from Fidelity Central Funds | 15 | |
Prepaid expenses | 42 | |
Other receivables | 860 | |
Total assets | 11,551,673 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 180,855 | |
Payable for fund shares redeemed | 18,727 | |
Accrued management fee | 6,763 | |
Other affiliated payables | 2,423 | |
Other payables and accrued expenses | 461 | |
Collateral on securities loaned, at value | 57,136 | |
Total liabilities | 266,365 | |
|
|
|
Net Assets | $ 11,285,308 | |
Net Assets consist of: |
| |
Paid in capital | $ 11,130,077 | |
Distributions in excess of net investment income | (5,532) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (1,538,477) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 1,699,240 | |
Net Assets | $ 11,285,308 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | January 31, 2010 (Unaudited) | |
Blue Chip Growth: | $ 35.90 | |
|
|
|
Class K: | $ 35.90 | |
|
|
|
Class F: | $ 35.92 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended January 31, 2010 (Unaudited) | |
Investment Income |
|
|
Dividends |
| $ 62,520 |
Interest |
| 1 |
Income from Fidelity Central Funds |
| 137 |
Total income |
| 62,658 |
|
|
|
Expenses | ||
Management fee | $ 31,814 | |
Performance adjustment | 4,705 | |
Transfer agent fees | 13,856 | |
Accounting and security lending fees | 766 | |
Custodian fees and expenses | 129 | |
Independent trustees' compensation | 34 | |
Registration fees | 68 | |
Audit | 48 | |
Legal | 48 | |
Interest | 4 | |
Miscellaneous | 102 | |
Total expenses before reductions | 51,574 | |
Expense reductions | (1,328) | 50,246 |
Net investment income (loss) | 12,412 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 618,313 | |
Other affiliated issuers | 141 |
|
Foreign currency transactions | (522) | |
Capital gain distributions from Fidelity Central Funds | 3 | |
Total net realized gain (loss) |
| 617,935 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 691,551 | |
Assets and liabilities in foreign currencies | (1) | |
Total change in net unrealized appreciation (depreciation) |
| 691,550 |
Net gain (loss) | 1,309,485 | |
Net increase (decrease) in net assets resulting from operations | $ 1,321,897 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended January 31, 2010 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 12,412 | $ 90,600 |
Net realized gain (loss) | 617,935 | (2,127,104) |
Change in net unrealized appreciation (depreciation) | 691,550 | (205,346) |
Net increase (decrease) in net assets resulting from operations | 1,321,897 | (2,241,850) |
Distributions to shareholders from net investment income | (57,433) | (99,426) |
Distributions to shareholders from net realized gain | - | (242,439) |
Total distributions | (57,433) | (341,865) |
Share transactions - net increase (decrease) | (260,943) | (483,151) |
Total increase (decrease) in net assets | 1,003,521 | (3,066,866) |
|
|
|
Net Assets | ||
Beginning of period | 10,281,787 | 13,348,653 |
End of period (including distributions in excess of net investment income of $5,532 and undistributed net investment income of $39,489, respectively) | $ 11,285,308 | $ 10,281,787 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Blue Chip Growth
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 31.97 | $ 39.06 | $ 46.88 | $ 41.54 | $ 42.60 | $ 38.72 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .04 | .27 | .35 | .32 | .23 | .42 G |
Net realized and unrealized gain (loss) | 4.07 | (6.36) | (2.89) | 6.19 | (1.06) | 3.85 |
Total from investment operations | 4.11 | (6.09) | (2.54) | 6.51 | (.83) | 4.27 |
Distributions from net investment income | (.18) | (.29) | (.33) | (.24) | (.23) | (.39) |
Distributions from net realized gain | - | (.71) | (4.95) | (.93) | - | - |
Total distributions | (.18) | (1.00) | (5.28) | (1.17) | (.23) | (.39) |
Net asset value, end of period | $ 35.90 | $ 31.97 | $ 39.06 | $ 46.88 | $ 41.54 | $ 42.60 |
Total Return B, C | 12.85% | (15.85)% | (6.30)% | 16.02% | (1.97)% | 11.08% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .92% A | .76% | .58% | .60% | .63% | .66% |
Expenses net of fee waivers, if any | .92% A | .76% | .58% | .60% | .63% | .66% |
Expenses net of all reductions | .90% A | .76% | .57% | .59% | .61% | .64% |
Net investment income (loss) | .21% A | .93% | .81% | .72% | .54% | 1.05% G |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 10,443 | $ 9,691 | $ 13,349 | $ 18,616 | $ 19,571 | $ 22,881 |
Portfolio turnover rate F | 118% A | 134% | 82% | 87% | 48% | 29% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a special dividend which amounted to $.20 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .56%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended January 31, 2010 | Years ended July 31, | |
(Unaudited) | 2009 | 2008 G | |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 32.01 | $ 39.07 | $ 41.81 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | .07 | .32 | .10 |
Net realized and unrealized gain (loss) | 4.07 | (6.33) | (2.84) |
Total from investment operations | 4.14 | (6.01) | (2.74) |
Distributions from net investment income | (.25) | (.34) | - |
Distributions from net realized gain | - | (.71) | - |
Total distributions | (.25) | (1.05) | - |
Net asset value, end of period | $ 35.90 | $ 32.01 | $ 39.07 |
Total Return B, C | 12.94% | (15.61)% | (6.55)% |
Ratios to Average Net Assets E, H |
|
|
|
Expenses before reductions | .72% A | .53% | .41% A |
Expenses net of fee waivers, if any | .72% A | .53% | .41% A |
Expenses net of all reductions | .70% A | .52% | .41% A |
Net investment income (loss) | .41% A | 1.16% | 1.09% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 715,457 | $ 590,673 | $ 93 |
Portfolio turnover rate F | 118% A | 134% | 82% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended January 31, 2010 | Years ended |
(Unaudited) | 2009 H | |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 31.98 | $ 29.16 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .08 | - J |
Net realized and unrealized gain (loss) | 4.08 | 2.82 G |
Total from investment operations | 4.16 | 2.82 |
Distributions from net investment income | (.22) | - |
Net asset value, end of period | $ 35.92 | $ 31.98 |
Total Return B, C | 13.02% | 9.67% |
Ratios to Average Net Assets E, I |
|
|
Expenses before reductions | .66% A | .51% A |
Expenses net of fee waivers, if any | .66% A | .51% A |
Expenses net of all reductions | .64% A | .51% A |
Net investment income (loss) | .46% A | (.05)% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 126,568 | $ 261 |
Portfolio turnover rate F | 118% A | 134% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
1. Organization.
Fidelity Blue Chip Growth Fund (the Fund) is a fund of Fidelity Securities Fund (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 Blue Chip Growth, Class K and Class F 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 commencement of Class K, The Fund began offering conversion privileges between Blue Chip Growth and Class K to eligible shareholders of Blue Chip Growth. In order to disclose class level financial information dollar amounts presented in the notes are unrounded. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
Semiannual Report
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
contracts, exchange-traded funds (ETFs), and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds ,including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, capital loss carryforwards, deferred trustees compensation and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,986,774,169 |
Gross unrealized depreciation | (332,341,589) |
Net unrealized appreciation (depreciation) | $ 1,654,432,580 |
|
|
Tax cost | $ 9,684,642,498 |
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $6,569,475,113 and $6,883,853,040, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class of the Fund, Blue Chip Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .64% of the Fund's average net assets.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of each class, except for Class F. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each applicable class were as follows:
| Amount | % of |
Blue Chip Growth | $ 13,656,769 | .26 |
Class K | 199,449 | .06 |
| $ 13,856,218 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $94,601 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily | Weighted Average Interest Rate | Interest |
Borrower | $ 9,630,179 | .40% | $ 4,195 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $21,866 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $126,090.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $1,327,694 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $309.
Semiannual Report
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Blue Chip Growth | $ 52,296,155 | $ 97,802,886 |
Class K | 4,902,403 | 1,622,768 |
Class F | 234,565 | - |
Total | $ 57,433,123 | $ 99,425,654 |
From net realized gain |
|
|
Blue Chip Growth | $ - | $ 242,437,464 |
Class K | - | 1,698 |
Class F | - | - |
Total | $ - | $ 242,439,162 |
A Distributions for Class F are for the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Blue Chip Growth |
|
|
|
|
Shares sold | 20,692,900 | 53,777,391 | $ 743,258,088 | $ 1,546,167,445 |
Conversion to Class K | (604,280) | (17,667,860) | (19,980,833) | (497,271,491) |
Reinvestment of distributions | 1,459,021 | 9,381,064 | 51,337,656 | 335,422,205 |
Shares redeemed | (33,783,279) | (84,149,947) | (1,213,954,019) | (2,387,026,199) |
Net increase (decrease) | (12,235,638) | (38,659,352) | $ (439,339,108) | $ (1,002,708,040) |
Class K |
|
|
|
|
Shares sold | 4,284,938 | 2,762,243 | $ 155,100,591 | $ 75,103,611 |
Conversion from Blue Chip Growth | 603,548 | 17,662,621 | 19,980,833 | 497,271,492 |
Reinvestment of distributions | 138,546 | 62,647 | 4,902,403 | 1,624,466 |
Shares redeemed | (3,555,438) | (2,034,629) | (131,436,116) | (54,677,110) |
Net increase (decrease) | 1,471,594 | 18,452,882 | $ 48,547,711 | $ 519,322,459 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Share Transactions - continued
| Shares | Dollars | ||
Six months ended January 31, 2010 B | Year ended | Six months ended January 31, 2010 B | Year ended | |
Class F |
|
|
|
|
Shares sold | 3,611,981 | 8,183 | $ 133,393,764 | $ 235,350 |
Reinvestment of distributions | 6,315 | - | 234,565 | - |
Shares redeemed | (102,686) | (10) | (3,781,670) | (294) |
Net increase (decrease) | 3,515,610 | 8,173 | $ 129,846,659 | $ 235,056 |
A Share transactions for Class F are for the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
B Conversion transactions for Class K and Blue Chip Growth are for the period August 1, 2009 through August 31, 2009.
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.
By Phone
Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Workplace
Investing
1-800-835-5092
By PC
Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.401k.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research
(U.K.) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisors
FIL Investment Advisors (U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
BCF-K-USAN-0310 1.863115.101
Fidelity®
Blue Chip Value
Fund
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past 6 months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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 (August 1, 2009 to January 31, 2010).
Actual Expenses
The first line of the accompanying table 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 under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.
Semiannual Report
Shareholder Expense Example - continued
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.
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Actual | .92% | $ 1,000.00 | $ 1,095.00 | $ 4.86 |
Hypothetical (5% return per year before expenses) |
| $ 1,000.00 | $ 1,020.57 | $ 4.69 |
* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Wells Fargo & Co. | 4.7 | 3.3 |
JPMorgan Chase & Co. | 4.7 | 5.0 |
Pfizer, Inc. | 4.1 | 2.8 |
Bank of America Corp. | 3.9 | 3.7 |
Chevron Corp. | 3.5 | 3.6 |
Occidental Petroleum Corp. | 3.3 | 3.2 |
Verizon Communications, Inc. | 3.0 | 2.2 |
Merck & Co., Inc. | 2.1 | 1.7 |
Hewlett-Packard Co. | 1.7 | 1.7 |
Morgan Stanley | 1.5 | 1.6 |
| 32.5 | |
Top Five Market Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Financials | 27.2 | 24.8 |
Energy | 18.2 | 18.4 |
Health Care | 11.5 | 9.9 |
Industrials | 9.5 | 9.0 |
Consumer Discretionary | 9.0 | 9.6 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks 98.8% |
| ![]() | Stocks 99.2% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 9.2% |
| ** Foreign investments | 10.1% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.8% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 9.0% | |||
Auto Components - 0.8% | |||
Johnson Controls, Inc. | 69,800 | $ 1,942,534 | |
The Goodyear Tire & Rubber Co. (a) | 55,100 | 735,034 | |
| 2,677,568 | ||
Automobiles - 0.2% | |||
Renault SA (a) | 14,500 | 680,665 | |
Hotels, Restaurants & Leisure - 0.3% | |||
Wyndham Worldwide Corp. | 43,200 | 906,768 | |
Household Durables - 2.6% | |||
Black & Decker Corp. | 24,000 | 1,551,840 | |
KB Home (c) | 322,200 | 4,923,216 | |
Pulte Homes, Inc. | 167,602 | 1,763,173 | |
Whirlpool Corp. | 9,234 | 694,212 | |
| 8,932,441 | ||
Media - 2.7% | |||
Cablevision Systems Corp.: | |||
NY Group Class A (f) | 53,300 | 1,366,612 | |
Class A (e) | 12,900 | 269,610 | |
DIRECTV (a) | 21,200 | 643,420 | |
DISH Network Corp. Class A | 56,900 | 1,038,994 | |
Time Warner Cable, Inc. | 72,767 | 3,171,914 | |
Time Warner, Inc. | 97,100 | 2,665,395 | |
| 9,155,945 | ||
Specialty Retail - 2.4% | |||
Advance Auto Parts, Inc. | 20,300 | 800,835 | |
Home Depot, Inc. | 43,200 | 1,210,032 | |
Lowe's Companies, Inc. | 117,600 | 2,546,040 | |
Ross Stores, Inc. | 15,800 | 725,694 | |
Staples, Inc. | 131,700 | 3,089,682 | |
| 8,372,283 | ||
TOTAL CONSUMER DISCRETIONARY | 30,725,670 | ||
CONSUMER STAPLES - 5.0% | |||
Beverages - 0.5% | |||
Anheuser-Busch InBev SA NV | 24,626 | 1,228,843 | |
Constellation Brands, Inc. Class A (sub. vtg.) (a) | 35,500 | 570,840 | |
| 1,799,683 | ||
Food & Staples Retailing - 1.4% | |||
CVS Caremark Corp. | 94,800 | 3,068,676 | |
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - continued | |||
Food & Staples Retailing - continued | |||
Kroger Co. | 47,600 | $ 1,020,068 | |
Winn-Dixie Stores, Inc. (a) | 71,862 | 727,962 | |
| 4,816,706 | ||
Food Products - 1.3% | |||
Bunge Ltd. | 13,500 | 793,665 | |
Nestle SA (Reg.) | 50,899 | 2,412,587 | |
Ralcorp Holdings, Inc. (a) | 19,300 | 1,192,740 | |
| 4,398,992 | ||
Household Products - 1.4% | |||
Energizer Holdings, Inc. (a) | 13,200 | 732,600 | |
Procter & Gamble Co. | 65,300 | 4,019,215 | |
| 4,751,815 | ||
Tobacco - 0.4% | |||
British American Tobacco PLC sponsored ADR | 18,700 | 1,244,298 | |
TOTAL CONSUMER STAPLES | 17,011,494 | ||
ENERGY - 18.2% | |||
Energy Equipment & Services - 5.2% | |||
Baker Hughes, Inc. | 43,300 | 1,960,624 | |
Ensco International Ltd. ADR | 36,050 | 1,407,032 | |
Halliburton Co. | 95,815 | 2,798,756 | |
Nabors Industries Ltd. (a) | 159,032 | 3,546,414 | |
National Oilwell Varco, Inc. | 41,314 | 1,689,743 | |
Noble Corp. | 19,300 | 778,176 | |
Pride International, Inc. (a) | 32,800 | 970,880 | |
Smith International, Inc. | 35,900 | 1,088,488 | |
Transocean Ltd. (a) | 15,812 | 1,339,909 | |
Weatherford International Ltd. (a) | 153,800 | 2,411,584 | |
| 17,991,606 | ||
Oil, Gas & Consumable Fuels - 13.0% | |||
Arch Coal, Inc. | 50,200 | 1,057,714 | |
Chesapeake Energy Corp. | 73,100 | 1,811,418 | |
Chevron Corp. | 167,200 | 12,058,464 | |
EOG Resources, Inc. | 12,200 | 1,103,124 | |
Exxon Mobil Corp. | 57,800 | 3,724,054 | |
Marathon Oil Corp. | 129,900 | 3,872,319 | |
Occidental Petroleum Corp. | 145,916 | 11,431,059 | |
Petrohawk Energy Corp. (a) | 103,700 | 2,315,621 | |
Common Stocks - continued | |||
Shares | Value | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Plains Exploration & Production Co. (a) | 54,100 | $ 1,804,235 | |
Range Resources Corp. | 38,200 | 1,757,200 | |
Royal Dutch Shell PLC Class B ADR | 41,700 | 2,225,946 | |
Southwestern Energy Co. (a) | 34,600 | 1,483,648 | |
| 44,644,802 | ||
TOTAL ENERGY | 62,636,408 | ||
FINANCIALS - 27.0% | |||
Capital Markets - 4.8% | |||
Bank of New York Mellon Corp. | 32,900 | 957,061 | |
Charles Schwab Corp. | 40,432 | 739,501 | |
Franklin Resources, Inc. | 16,100 | 1,594,383 | |
Goldman Sachs Group, Inc. | 34,200 | 5,086,224 | |
Morgan Stanley | 196,300 | 5,256,914 | |
Northern Trust Corp. | 18,700 | 944,724 | |
State Street Corp. | 44,370 | 1,902,586 | |
| 16,481,393 | ||
Commercial Banks - 6.6% | |||
PNC Financial Services Group, Inc. | 74,072 | 4,105,811 | |
SVB Financial Group (a) | 23,000 | 997,970 | |
U.S. Bancorp, Delaware | 53,000 | 1,329,240 | |
Wells Fargo & Co. | 574,337 | 16,328,396 | |
| 22,761,417 | ||
Consumer Finance - 0.9% | |||
Capital One Financial Corp. | 81,000 | 2,985,660 | |
Diversified Financial Services - 9.5% | |||
Bank of America Corp. (c) | 877,882 | 13,326,249 | |
CME Group, Inc. | 6,000 | 1,720,920 | |
JPMorgan Chase & Co. | 411,852 | 16,037,517 | |
KKR Financial Holdings LLC | 139,600 | 841,788 | |
Moody's Corp. | 32,600 | 899,434 | |
| 32,825,908 | ||
Insurance - 3.5% | |||
ACE Ltd. | 64,580 | 3,181,857 | |
Allstate Corp. | 36,000 | 1,077,480 | |
Berkshire Hathaway, Inc. Class B (a) | 10,200 | 779,586 | |
Genworth Financial, Inc. Class A (a) | 172,127 | 2,382,238 | |
Lincoln National Corp. | 62,900 | 1,546,082 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Insurance - continued | |||
MetLife, Inc. | 28,100 | $ 992,492 | |
Unum Group | 54,800 | 1,072,436 | |
XL Capital Ltd. Class A | 60,900 | 1,021,293 | |
| 12,053,464 | ||
Real Estate Investment Trusts - 0.9% | |||
CBL & Associates Properties, Inc. | 32,600 | 326,000 | |
ProLogis Trust | 41,900 | 527,940 | |
Public Storage | 13,400 | 1,061,012 | |
SL Green Realty Corp. | 25,600 | 1,164,544 | |
| 3,079,496 | ||
Real Estate Management & Development - 0.8% | |||
CB Richard Ellis Group, Inc. Class A (a) | 221,100 | 2,719,530 | |
TOTAL FINANCIALS | 92,906,868 | ||
HEALTH CARE - 11.5% | |||
Biotechnology - 0.6% | |||
Amgen, Inc. (a) | 14,800 | 865,504 | |
Biogen Idec, Inc. (a) | 20,400 | 1,096,296 | |
| 1,961,800 | ||
Health Care Equipment & Supplies - 2.0% | |||
C. R. Bard, Inc. | 14,600 | 1,210,194 | |
Covidien PLC | 93,685 | 4,736,714 | |
Stryker Corp. | 15,900 | 825,528 | |
| 6,772,436 | ||
Health Care Providers & Services - 2.3% | |||
Aetna, Inc. | 60,700 | 1,819,179 | |
Brookdale Senior Living, Inc. (a) | 69,500 | 1,268,375 | |
CIGNA Corp. | 68,700 | 2,319,999 | |
Humana, Inc. (a) | 49,100 | 2,387,242 | |
| 7,794,795 | ||
Life Sciences Tools & Services - 0.1% | |||
Thermo Fisher Scientific, Inc. (a) | 12,100 | 558,415 | |
Pharmaceuticals - 6.5% | |||
Merck & Co., Inc. | 193,300 | 7,380,194 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
Pfizer, Inc. | 754,219 | $ 14,073,727 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 17,800 | 1,009,616 | |
| 22,463,537 | ||
TOTAL HEALTH CARE | 39,550,983 | ||
INDUSTRIALS - 9.5% | |||
Aerospace & Defense - 2.0% | |||
Honeywell International, Inc. | 76,160 | 2,942,822 | |
Precision Castparts Corp. | 8,400 | 884,100 | |
United Technologies Corp. | 45,100 | 3,043,348 | |
| 6,870,270 | ||
Building Products - 1.1% | |||
Masco Corp. | 201,900 | 2,737,764 | |
Owens Corning (a) | 35,800 | 921,134 | |
| 3,658,898 | ||
Commercial Services & Supplies - 0.3% | |||
Republic Services, Inc. | 43,330 | 1,160,811 | |
Construction & Engineering - 0.3% | |||
Fluor Corp. | 25,800 | 1,169,772 | |
Electrical Equipment - 0.4% | |||
Acuity Brands, Inc. | 15,300 | 547,434 | |
Regal-Beloit Corp. | 18,491 | 876,473 | |
| 1,423,907 | ||
Industrial Conglomerates - 0.5% | |||
Textron, Inc. | 88,600 | 1,730,358 | |
Machinery - 2.5% | |||
Caterpillar, Inc. | 21,500 | 1,123,160 | |
Cummins, Inc. | 61,600 | 2,781,856 | |
Deere & Co. | 22,700 | 1,133,865 | |
Ingersoll-Rand Co. Ltd. | 89,900 | 2,918,154 | |
Navistar International Corp. (a) | 13,600 | 503,064 | |
| 8,460,099 | ||
Road & Rail - 2.4% | |||
Avis Budget Group, Inc. (a) | 58,200 | 629,724 | |
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Road & Rail - continued | |||
CSX Corp. | 79,100 | $ 3,390,226 | |
Union Pacific Corp. | 67,600 | 4,089,800 | |
| 8,109,750 | ||
TOTAL INDUSTRIALS | 32,583,865 | ||
INFORMATION TECHNOLOGY - 7.2% | |||
Communications Equipment - 1.0% | |||
Cisco Systems, Inc. (a) | 119,000 | 2,673,930 | |
Juniper Networks, Inc. (a) | 33,200 | 824,356 | |
| 3,498,286 | ||
Computers & Peripherals - 1.7% | |||
Hewlett-Packard Co. | 124,900 | 5,879,043 | |
Electronic Equipment & Components - 2.0% | |||
Agilent Technologies, Inc. | 34,250 | 960,028 | |
Amphenol Corp. Class A | 9,400 | 374,496 | |
Arrow Electronics, Inc. (a) | 45,500 | 1,195,285 | |
Avnet, Inc. (a) | 78,346 | 2,071,468 | |
Flextronics International Ltd. (a) | 144,100 | 913,594 | |
Tyco Electronics Ltd. | 60,085 | 1,494,915 | |
| 7,009,786 | ||
Internet Software & Services - 0.5% | |||
eBay, Inc. (a) | 71,000 | 1,634,420 | |
Semiconductors & Semiconductor Equipment - 1.6% | |||
Applied Materials, Inc. | 188,800 | 2,299,584 | |
KLA-Tencor Corp. | 44,400 | 1,252,080 | |
Lam Research Corp. (a) | 56,300 | 1,858,463 | |
| 5,410,127 | ||
Software - 0.4% | |||
Microsoft Corp. | 42,600 | 1,200,468 | |
TOTAL INFORMATION TECHNOLOGY | 24,632,130 | ||
MATERIALS - 3.3% | |||
Chemicals - 1.6% | |||
Albemarle Corp. | 36,890 | 1,317,711 | |
Celanese Corp. Class A | 27,700 | 806,070 | |
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Chemicals - continued | |||
Dow Chemical Co. | 102,300 | $ 2,771,307 | |
Terra Industries, Inc. | 21,800 | 688,880 | |
| 5,583,968 | ||
Construction Materials - 0.4% | |||
HeidelbergCement AG | 17,792 | 1,072,148 | |
Vulcan Materials Co. | 8,800 | 388,872 | |
| 1,461,020 | ||
Containers & Packaging - 0.3% | |||
Owens-Illinois, Inc. (a) | 33,200 | 903,704 | |
Metals & Mining - 0.7% | |||
ArcelorMittal SA (NY Shares) Class A (c) | 29,200 | 1,129,456 | |
Commercial Metals Co. | 60,800 | 835,392 | |
Newcrest Mining Ltd. | 20,531 | 572,413 | |
| 2,537,261 | ||
Paper & Forest Products - 0.3% | |||
Weyerhaeuser Co. | 24,405 | 973,760 | |
TOTAL MATERIALS | 11,459,713 | ||
TELECOMMUNICATION SERVICES - 3.9% | |||
Diversified Telecommunication Services - 3.3% | |||
Qwest Communications International, Inc. | 260,900 | 1,098,389 | |
Verizon Communications, Inc. | 345,373 | 10,160,874 | |
| 11,259,263 | ||
Wireless Telecommunication Services - 0.6% | |||
Sprint Nextel Corp. (a) | 625,645 | 2,052,116 | |
TOTAL TELECOMMUNICATION SERVICES | 13,311,379 | ||
UTILITIES - 4.2% | |||
Electric Utilities - 2.1% | |||
Allegheny Energy, Inc. | 23,600 | 494,420 | |
American Electric Power Co., Inc. | 68,100 | 2,359,665 | |
Entergy Corp. | 25,700 | 1,961,167 | |
FirstEnergy Corp. | 58,900 | 2,569,218 | |
| 7,384,470 | ||
Independent Power Producers & Energy Traders - 0.8% | |||
AES Corp. | 38,100 | 481,203 | |
Common Stocks - continued | |||
Shares | Value | ||
UTILITIES - continued | |||
Independent Power Producers & Energy Traders - continued | |||
Constellation Energy Group, Inc. | 33,000 | $ 1,065,240 | |
NRG Energy, Inc. (a) | 50,500 | 1,217,555 | |
| 2,763,998 | ||
Multi-Utilities - 1.3% | |||
Alliant Energy Corp. | 41,800 | 1,304,160 | |
CMS Energy Corp. | 93,300 | 1,415,361 | |
PG&E Corp. | 40,200 | 1,698,048 | |
| 4,417,569 | ||
TOTAL UTILITIES | 14,566,037 | ||
TOTAL COMMON STOCKS (Cost $348,289,058) | 339,384,547 | ||
Convertible Preferred Stocks - 0.2% | |||
|
|
|
|
FINANCIALS - 0.2% | |||
Diversified Financial Services - 0.2% | |||
Bank of America Corp. |
|
| |
(Cost $900,000) | 60,000 | 906,000 | |
Money Market Funds - 2.5% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.17% (d) | 2,847,181 | 2,847,181 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(d) | 5,719,300 | 5,719,300 | |
TOTAL MONEY MARKET FUNDS (Cost $8,566,481) | 8,566,481 | ||
TOTAL INVESTMENT PORTFOLIO - 101.5% (Cost $357,755,539) | 348,857,028 | ||
NET OTHER ASSETS - (1.5)% | (5,314,083) | ||
NET ASSETS - 100% | $ 343,542,945 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(e) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(f) A portion of the security is subject to a forward commitment to sell. |
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 | $ 2,007 |
Fidelity Securities Lending Cash Central Fund | 3,667 |
Total | $ 5,674 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 30,725,670 | $ 30,045,005 | $ 680,665 | $ - |
Consumer Staples | 17,011,494 | 13,370,064 | 3,641,430 | - |
Energy | 62,636,408 | 62,636,408 | - | - |
Financials | 93,812,868 | 93,812,868 | - | - |
Health Care | 39,550,983 | 39,550,983 | - | - |
Industrials | 32,583,865 | 32,583,865 | - | - |
Information Technology | 24,632,130 | 24,632,130 | - | - |
Materials | 11,459,713 | 10,387,565 | 1,072,148 | - |
Telecommunication Services | 13,311,379 | 13,311,379 | - | - |
Utilities | 14,566,037 | 14,566,037 | - | - |
Money Market Funds | 8,566,481 | 8,566,481 | - | - |
Total Investments in Securities: | $ 348,857,028 | $ 343,462,785 | $ 5,394,243 | $ - |
Other Financial Instruments: | ||||
Forward Commitments | $ 20,553 | $ 20,553 | $ - | $ - |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $112,736,963 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $70,691,099 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $5,543,932) - See accompanying schedule: Unaffiliated issuers (cost $349,189,058) | $ 340,290,547 |
|
Fidelity Central Funds (cost $8,566,481) | 8,566,481 |
|
Total Investments (cost $357,755,539) |
| $ 348,857,028 |
Commitment to sell securities on a when-issued basis | (248,097) | |
Receivable for securities sold on a when-issued basis | 268,650 | 20,553 |
Receivable for investments sold | 3,249,686 | |
Receivable for fund shares sold | 380,530 | |
Dividends receivable | 319,762 | |
Distributions receivable from Fidelity Central Funds | 1,395 | |
Prepaid expenses | 1,367 | |
Other receivables | 3,460 | |
Total assets | 352,833,781 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 85,330 | |
Payable for investments purchased | ||
Regular delivery | 2,330,500 | |
Delayed delivery | 271,819 | |
Payable for fund shares redeemed | 433,408 | |
Accrued management fee | 151,360 | |
Other affiliated payables | 112,423 | |
Other payables and accrued expenses | 186,696 | |
Collateral on securities loaned, at value | 5,719,300 | |
Total liabilities | 9,290,836 | |
|
|
|
Net Assets | $ 343,542,945 | |
Net Assets consist of: |
| |
Paid in capital | $ 543,117,734 | |
Undistributed net investment income | 142,796 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (190,679,484) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (9,038,101) | |
Net Assets, for 35,543,965 shares outstanding | $ 343,542,945 | |
Net Asset Value, offering price and redemption price per share ($343,542,945 ÷ 35,543,965 shares) | $ 9.67 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 3,092,095 |
Interest |
| 729 |
Income from Fidelity Central Funds |
| 5,674 |
Total income |
| 3,098,498 |
|
|
|
Expenses | ||
Management fee | $ 994,849 | |
Performance adjustment | (97,212) | |
Transfer agent fees | 607,101 | |
Accounting and security lending fees | 69,654 | |
Custodian fees and expenses | 12,709 | |
Independent trustees' compensation | 1,053 | |
Registration fees | 7,528 | |
Audit | 28,242 | |
Legal | 1,326 | |
Miscellaneous | 3,339 | |
Total expenses before reductions | 1,628,589 | |
Expense reductions | (11,204) | 1,617,385 |
Net investment income (loss) | 1,481,113 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 3,673,745 | |
Foreign currency transactions | (4,989) | |
Total net realized gain (loss) |
| 3,668,756 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 26,369,479 | |
Assets and liabilities in foreign currencies | (51) | |
When-issued commitments | 20,553 | |
Total change in net unrealized appreciation (depreciation) |
| 26,389,981 |
Net gain (loss) | 30,058,737 | |
Net increase (decrease) in net assets resulting from operations | $ 31,539,850 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended January 31, 2010 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 1,481,113 | $ 6,086,193 |
Net realized gain (loss) | 3,668,756 | (145,127,515) |
Change in net unrealized appreciation (depreciation) | 26,389,981 | 11,005,366 |
Net increase (decrease) in net assets resulting | 31,539,850 | (128,035,956) |
Distributions to shareholders from net investment income | (4,762,190) | (7,269,944) |
Distributions to shareholders from net realized gain | - | (412,628) |
Total distributions | (4,762,190) | (7,682,572) |
Share transactions | 30,755,156 | 80,005,344 |
Reinvestment of distributions | 4,632,338 | 7,439,489 |
Cost of shares redeemed | (51,387,387) | (136,690,953) |
Net increase (decrease) in net assets resulting from share transactions | (15,999,893) | (49,246,120) |
Total increase (decrease) in net assets | 10,777,767 | (184,964,648) |
|
|
|
Net Assets | ||
Beginning of period | 332,765,178 | 517,729,826 |
End of period (including undistributed net investment income of $142,796 and undistributed net investment income of $3,423,873, respectively) | $ 343,542,945 | $ 332,765,178 |
Other Information Shares | ||
Sold | 3,147,710 | 9,742,336 |
Issued in reinvestment of distributions | 479,700 | 760,861 |
Redeemed | (5,257,410) | (15,943,607) |
Net increase (decrease) | (1,630,000) | (5,440,410) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 8.95 | $ 12.15 | $ 15.46 | $ 13.95 | $ 13.21 | $ 11.24 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss)D | .04 | .16 | .21 | .19 | .10 | .11 |
Net realized and unrealized gain (loss) | .81 | (3.17) | (2.68) | 2.05 | .95 | 2.03 |
Total from investment operations | .85 | (3.01) | (2.47) | 2.24 | 1.05 | 2.14 |
Distributions from net investment income | (.13) | (.18) | (.16) | (.13) | (.08) | (.09) |
Distributions from net realized gain | - | (.01) | (.68) | (.60) | (.23) | (.08) |
Total distributions | (.13) | (.19) | (.84) | (.73) | (.31) | (.17) |
Net asset value, end of period | $ 9.67 | $ 8.95 | $ 12.15 | $ 15.46 | $ 13.95 | $ 13.21 |
Total Return B,C | 9.50% | (24.89)% | (16.86)% | 16.60% | 8.05% | 19.20% |
Ratios to Average Net Assets E,G |
|
|
|
|
| |
Expenses before reductions | .92% A | .77% | .92% | .87% | .94% | .97% |
Expenses net of fee waivers, if any | .92% A | .77% | .92% | .87% | .94% | .97% |
Expenses net of all reductions | .91% A | .77% | .91% | .87% | .93% | .93% |
Net investment income (loss) | .83% A | 1.87% | 1.46% | 1.25% | .76% | .85% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 343,543 | $ 332,765 | $ 517,730 | $ 731,351 | $ 272,702 | $ 182,071 |
Portfolio turnover rate F | 57% A | 69% | 61% | 92% | 74% | 81% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
1. Organization.
Fidelity Blue Chip Value Fund (the Fund) is a fund of Fidelity Securities Fund (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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Foreign Currency - continued
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 35,880,886 |
Gross unrealized depreciation | (56,252,371) |
Net unrealized appreciation (depreciation) | $ (20,371,485) |
|
|
Tax cost | $ 369,228,513 |
4. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $98,984,345 and $119,375,557, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .51% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .34% of average net assets.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $4,810 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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
Semiannual Report
7. Committed Line of Credit - continued
pay commitment fees on its pro-rata portion of the line of credit, which amounted to $692 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $3,667.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $11,200 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $4.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
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Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
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Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
Arizona
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Scottsdale, AZ
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Colorado
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Denver, CO
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Connecticut
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Delaware
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Maine
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Maryland
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Massachusetts
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Semiannual Report
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Michigan
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43420 Grand River Avenue
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Minnesota
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Missouri
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Nevada
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New York
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North Carolina
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Charlotte, NC
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Ohio
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28699 Chagrin Boulevard
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Oregon
7493 SW Bridgeport Road
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Pennsylvania
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Rhode Island
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Texas
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4001 Northwest Parkway
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Utah
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Virginia
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Washington
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Seattle, WA
304 Strander Blvd
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Washington, DC
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Washington, DC
Wisconsin
16020 West Bluemound Road
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Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Semiannual Report
To Write Fidelity
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Fidelity Investments
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Fidelity Investments
P.O. Box 770001
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Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
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Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research
(U.K.) Inc.
FIL Investments (Japan) Limited
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) Limited
FIL Investment Advisors
FIL Investment Advisors (U.K.) Ltd.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
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Operations Company, Inc.
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Fidelity Service Company, Inc.
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Custodian
Brown Brothers Harriman & Co.
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The Fidelity Telephone Connection
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Automated line for quickest service
BCV-USAN-0310 1.789732.107
Fidelity®
Dividend Growth
Fund
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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 (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Dividend Growth | .91% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,133.70 | $ 4.89 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.62 | $ 4.63 |
Class K | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,134.80 | $ 3.77 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.68 | $ 3.57 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Wells Fargo & Co. | 2.5 | 2.2 |
JPMorgan Chase & Co. | 1.8 | 1.9 |
Bank of America Corp. | 1.6 | 2.2 |
PNC Financial Services Group, Inc. | 1.6 | 1.0 |
Pfizer, Inc. | 1.5 | 1.6 |
Cisco Systems, Inc. | 1.4 | 1.6 |
The Coca-Cola Co. | 1.3 | 0.9 |
Merck & Co., Inc. | 1.2 | 0.8 |
Hewlett-Packard Co. | 1.2 | 1.2 |
Google, Inc. Class A | 1.2 | 0.5 |
| 15.3 | |
Top Five Market Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Financials | 18.3 | 16.4 |
Information Technology | 17.0 | 18.0 |
Health Care | 12.8 | 12.3 |
Energy | 11.4 | 11.9 |
Industrials | 10.2 | 10.0 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks and |
| ![]() | Stocks and |
| ||
![]() | Bonds 0.3% |
| ![]() | Bonds 0.2% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 15.6% |
| ** Foreign investments | 12.0% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.2% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 9.9% | |||
Auto Components - 0.5% | |||
BorgWarner, Inc. | 115,300 | $ 4,046 | |
Johnson Controls, Inc. | 480,736 | 13,379 | |
Stoneridge, Inc. (a) | 837,341 | 5,845 | |
The Goodyear Tire & Rubber Co. (a) | 1,019,300 | 13,597 | |
| 36,867 | ||
Automobiles - 0.6% | |||
Fiat SpA (a) | 507,800 | 6,363 | |
Harley-Davidson, Inc. | 333,605 | 7,586 | |
Mazda Motor Corp. (a) | 1,770,000 | 4,804 | |
Thor Industries, Inc. | 540,300 | 17,155 | |
Winnebago Industries, Inc. (a) | 566,454 | 6,769 | |
| 42,677 | ||
Diversified Consumer Services - 0.3% | |||
Apollo Group, Inc. Class A (non-vtg.) (a) | 100,800 | 6,107 | |
Service Corp. International | 1,072,000 | 8,222 | |
Stewart Enterprises, Inc. Class A | 2,333,532 | 11,831 | |
| 26,160 | ||
Hotels, Restaurants & Leisure - 1.7% | |||
Brinker International, Inc. | 919,200 | 15,001 | |
Burger King Holdings, Inc. | 56,300 | 982 | |
DineEquity, Inc. (a)(c) | 766,100 | 17,421 | |
NH Hoteles SA (a) | 1,166,400 | 5,755 | |
O'Charleys, Inc. (a) | 833,800 | 6,170 | |
Red Robin Gourmet Burgers, Inc. (a) | 152,200 | 2,805 | |
Scientific Games Corp. Class A (a) | 120,700 | 1,699 | |
Sol Melia SA | 446,800 | 3,666 | |
Sonic Corp. (a) | 1,097,100 | 9,249 | |
Starwood Hotels & Resorts Worldwide, Inc. | 456,913 | 15,224 | |
WMS Industries, Inc. (a) | 147,900 | 5,484 | |
Wyndham Worldwide Corp. | 2,170,315 | 45,555 | |
| 129,011 | ||
Household Durables - 1.0% | |||
Black & Decker Corp. | 129,200 | 8,354 | |
Hooker Furniture Corp. | 341,942 | 4,346 | |
M.D.C. Holdings, Inc. | 120,201 | 4,039 | |
Mohawk Industries, Inc. (a) | 359,600 | 14,891 | |
Newell Rubbermaid, Inc. | 541,100 | 7,343 | |
Pulte Homes, Inc. | 1,018,282 | 10,712 | |
Stanley Furniture Co., Inc. (a) | 196,788 | 1,919 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Household Durables - continued | |||
Tempur-Pedic International, Inc. (a) | 96,500 | $ 2,402 | |
Whirlpool Corp. | 273,600 | 20,569 | |
| 74,575 | ||
Media - 2.4% | |||
Cablevision Systems Corp. - NY Group Class A | 529,838 | 13,585 | |
CC Media Holdings, Inc. Class A (a) | 1,200,000 | 3,720 | |
Comcast Corp.: | |||
Class A | 51,870 | 821 | |
Class A (special) (non-vtg.) | 362,510 | 5,488 | |
DIRECTV (a) | 760,238 | 23,073 | |
DISH Network Corp. Class A | 933,373 | 17,043 | |
Informa PLC | 1,712,482 | 8,974 | |
Lamar Advertising Co. Class A (a) | 559,601 | 16,005 | |
Liberty Media Corp. Starz Series A (a) | 266,689 | 12,508 | |
McGraw-Hill Companies, Inc. | 460,900 | 16,339 | |
MDC Partners, Inc. Class A (sub. vtg.) | 49,200 | 408 | |
The Walt Disney Co. | 495,767 | 14,650 | |
Time Warner Cable, Inc. | 788,926 | 34,389 | |
United Business Media Ltd. | 623,900 | 4,236 | |
Viacom, Inc. Class B (non-vtg.) (a) | 381,000 | 11,102 | |
| 182,341 | ||
Multiline Retail - 0.4% | |||
Target Corp. | 659,738 | 33,825 | |
Specialty Retail - 2.8% | |||
Advance Auto Parts, Inc. | 516,500 | 20,376 | |
AnnTaylor Stores Corp. (a) | 1,050,500 | 13,194 | |
Asbury Automotive Group, Inc. (a) | 432,400 | 4,787 | |
Best Buy Co., Inc. | 217,200 | 7,960 | |
Big 5 Sporting Goods Corp. | 551,000 | 8,050 | |
Cabela's, Inc. Class A (a)(c) | 390,446 | 6,294 | |
Carphone Warehouse Group PLC | 1,392,534 | 4,226 | |
Casual Male Retail Group, Inc. (a) | 2,353,500 | 6,590 | |
Gymboree Corp. (a) | 172,600 | 6,733 | |
Hengdeli Holdings Ltd. | 25,940,000 | 8,620 | |
Home Depot, Inc. | 382,368 | 10,710 | |
Lowe's Companies, Inc. | 2,024,386 | 43,828 | |
Lumber Liquidators Holdings, Inc. (a)(c) | 236,797 | 5,607 | |
MarineMax, Inc. (a) | 484,600 | 4,376 | |
OfficeMax, Inc. (a) | 828,306 | 10,743 | |
RadioShack Corp. | 297,600 | 5,809 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
Sally Beauty Holdings, Inc. (a) | 1,207,300 | $ 10,069 | |
Staples, Inc. | 1,047,432 | 24,573 | |
The Children's Place Retail Stores, Inc. (a)(c) | 257,414 | 8,186 | |
Zale Corp. (a)(c) | 19,453 | 42 | |
| 210,773 | ||
Textiles, Apparel & Luxury Goods - 0.2% | |||
American Apparel, Inc. (a)(c) | 1,455,500 | 4,119 | |
Bosideng International Holdings Ltd. | 2,252,000 | 447 | |
G-III Apparel Group Ltd. (a) | 40,200 | 700 | |
Iconix Brand Group, Inc. (a) | 323,200 | 4,079 | |
Steven Madden Ltd. (a) | 168,938 | 6,781 | |
Trinity Ltd. | 1,006,000 | 473 | |
| 16,599 | ||
TOTAL CONSUMER DISCRETIONARY | 752,828 | ||
CONSUMER STAPLES - 9.6% | |||
Beverages - 2.1% | |||
Anheuser-Busch InBev SA NV | 596,581 | 29,770 | |
Carlsberg AS Series B | 140,800 | 10,501 | |
Dr Pepper Snapple Group, Inc. | 293,569 | 8,120 | |
Fomento Economico Mexicano SAB de CV sponsored ADR | 71,000 | 2,993 | |
Molson Coors Brewing Co. Class B | 193,005 | 8,106 | |
Remy Cointreau SA | 56,912 | 2,852 | |
The Coca-Cola Co. | 1,827,359 | 99,134 | |
| 161,476 | ||
Food & Staples Retailing - 2.5% | |||
CVS Caremark Corp. | 1,472,497 | 47,665 | |
Kroger Co. | 832,100 | 17,832 | |
PriceSmart, Inc. | 405,565 | 8,115 | |
Safeway, Inc. | 438,400 | 9,842 | |
Wal-Mart Stores, Inc. | 1,282,863 | 68,543 | |
Walgreen Co. | 502,773 | 18,125 | |
Winn-Dixie Stores, Inc. (a) | 1,720,396 | 17,428 | |
| 187,550 | ||
Food Products - 2.6% | |||
Bunge Ltd. | 221,138 | 13,001 | |
Calavo Growers, Inc. | 378,032 | 6,336 | |
General Mills, Inc. | 112,596 | 8,029 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Food Products - continued | |||
Kellogg Co. | 177,028 | $ 9,634 | |
Kerry Group PLC Class A | 92,509 | 2,741 | |
Leroy Seafood Group ASA (c) | 447,100 | 9,301 | |
M. Dias Branco SA | 12,100 | 312 | |
Marine Harvest ASA (a)(c) | 59,039,000 | 52,740 | |
Nestle SA (Reg.) | 401,433 | 19,028 | |
Pilgrims Pride Corp. (a) | 129,800 | 1,151 | |
Ralcorp Holdings, Inc. (a) | 173,100 | 10,698 | |
Smithfield Foods, Inc. (a) | 1,206,600 | 18,171 | |
Tingyi (Cayman Island) Holding Corp. | 2,252,000 | 4,873 | |
Tyson Foods, Inc. Class A | 1,997,337 | 27,603 | |
Unilever NV (Certificaten Van Aandelen) (Bearer) unit | 413,800 | 12,670 | |
| 196,288 | ||
Household Products - 0.7% | |||
Energizer Holdings, Inc. (a) | 210,587 | 11,688 | |
Procter & Gamble Co. | 649,201 | 39,958 | |
| 51,646 | ||
Personal Products - 0.9% | |||
Avon Products, Inc. | 723,828 | 21,816 | |
BaWang International (Group) Holding Ltd. | 19,040,000 | 11,011 | |
Hengan International Group Co. Ltd. | 1,344,000 | 9,002 | |
Herbalife Ltd. | 193,040 | 7,500 | |
Hypermarcas SA (a) | 394,400 | 4,557 | |
NBTY, Inc. (a) | 379,600 | 16,904 | |
| 70,790 | ||
Tobacco - 0.8% | |||
Imperial Tobacco Group PLC | 124,675 | 4,020 | |
Japan Tobacco, Inc. | 1,166 | 4,224 | |
Lorillard, Inc. | 202,325 | 15,316 | |
Philip Morris International, Inc. | 894,800 | 40,722 | |
| 64,282 | ||
TOTAL CONSUMER STAPLES | 732,032 | ||
ENERGY - 11.1% | |||
Energy Equipment & Services - 3.6% | |||
Baker Hughes, Inc. | 381,990 | 17,297 | |
BJ Services Co. | 530,926 | 10,974 | |
Global Industries Ltd. (a) | 1,395,111 | 9,724 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Energy Equipment & Services - continued | |||
Halliburton Co. | 731,100 | $ 21,355 | |
ION Geophysical Corp. (a) | 257,400 | 1,223 | |
Nabors Industries Ltd. (a) | 562,382 | 12,541 | |
National Oilwell Varco, Inc. | 1,392,245 | 56,943 | |
Noble Corp. | 282,108 | 11,375 | |
Parker Drilling Co. (a) | 821,299 | 3,950 | |
Patterson-UTI Energy, Inc. | 249,300 | 3,829 | |
Pride International, Inc. (a) | 267,136 | 7,907 | |
Schlumberger Ltd. | 490,626 | 31,135 | |
Scorpion Offshore Ltd. (a) | 2,191,000 | 9,527 | |
Seahawk Drilling, Inc. (a) | 188,265 | 3,937 | |
Smith International, Inc. | 311,277 | 9,438 | |
Superior Well Services, Inc. (a) | 288,900 | 4,573 | |
Union Drilling, Inc. (a) | 748,143 | 5,439 | |
Vantage Drilling Co. (a) | 2,868,400 | 4,044 | |
Weatherford International Ltd. (a) | 3,065,161 | 48,062 | |
| 273,273 | ||
Oil, Gas & Consumable Fuels - 7.5% | |||
Alpha Natural Resources, Inc. (a) | 196,077 | 7,963 | |
Anadarko Petroleum Corp. | 44,200 | 2,819 | |
Arch Coal, Inc. | 1,226,300 | 25,838 | |
Arena Resources, Inc. (a) | 80,400 | 3,083 | |
Berry Petroleum Co. Class A | 891,200 | 24,134 | |
Brigham Exploration Co. (a) | 1,867,101 | 24,347 | |
Cabot Oil & Gas Corp. | 162,706 | 6,227 | |
Chesapeake Energy Corp. | 1,121,197 | 27,783 | |
Compton Petroleum Corp. (a) | 2,393,100 | 2,126 | |
Concho Resources, Inc. (a) | 250,460 | 11,238 | |
Denbury Resources, Inc. (a) | 991,590 | 13,436 | |
EOG Resources, Inc. | 248,600 | 22,478 | |
EXCO Resources, Inc. | 914,357 | 16,038 | |
Heritage Oil PLC (a) | 321,800 | 2,542 | |
Hess Corp. | 232,500 | 13,436 | |
Holly Corp. | 318,100 | 8,302 | |
International Coal Group, Inc. (a) | 1,608,835 | 5,744 | |
InterOil Corp. (a)(c) | 128,700 | 7,607 | |
Iteration Energy Ltd. (a) | 804,400 | 910 | |
Keyera Facilities Income Fund | 341,442 | 7,747 | |
Lukoil Oil Co. sponsored ADR | 84,787 | 4,655 | |
Niko Resources Ltd. | 101,000 | 9,326 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Northern Oil & Gas, Inc. (a)(c) | 1,276,325 | $ 14,103 | |
Occidental Petroleum Corp. | 530,820 | 41,584 | |
OPTI Canada, Inc. (a) | 5,365,900 | 9,685 | |
OPTI Canada, Inc. (a)(e) | 2,661,400 | 4,804 | |
PetroBakken Energy Ltd. Class A (c) | 529,826 | 14,691 | |
Petrohawk Energy Corp. (a) | 2,920,538 | 65,216 | |
Petroleo Brasileiro SA - Petrobras sponsored ADR | 88,400 | 3,586 | |
Plains Exploration & Production Co. (a) | 1,363,468 | 45,472 | |
Range Resources Corp. | 510,200 | 23,469 | |
Rex Energy Corp. (a) | 257,100 | 3,185 | |
Rosetta Resources, Inc. (a) | 388,475 | 7,987 | |
SandRidge Energy, Inc. (a)(c) | 2,594,200 | 21,947 | |
Southwestern Energy Co. (a) | 823,537 | 35,313 | |
Suncor Energy, Inc. | 687,500 | 21,706 | |
Venoco, Inc. (a) | 596,419 | 6,877 | |
Whiting Petroleum Corp. (a) | 116,625 | 7,763 | |
| 575,167 | ||
TOTAL ENERGY | 848,440 | ||
FINANCIALS - 17.5% | |||
Capital Markets - 1.5% | |||
AllianceBernstein Holding LP | 261,000 | 6,718 | |
Bank of New York Mellon Corp. | 481,752 | 14,014 | |
Bank Sarasin & Co. Ltd. Series B (Reg.) (a) | 196,440 | 6,707 | |
Charles Schwab Corp. | 867,770 | 15,872 | |
GCA Savvian Group Corp. (c) | 2,250 | 2,617 | |
Janus Capital Group, Inc. | 643,400 | 7,856 | |
Morgan Stanley | 1,895,024 | 50,749 | |
Northern Trust Corp. | 159,521 | 8,059 | |
optionsXpress Holdings, Inc. | 60,646 | 870 | |
TD Ameritrade Holding Corp. (a) | 140,800 | 2,501 | |
| 115,963 | ||
Commercial Banks - 5.9% | |||
Associated Banc-Corp. | 1,423,743 | 18,110 | |
CapitalSource, Inc. | 5,651,145 | 27,069 | |
Huntington Bancshares, Inc. | 2,546,200 | 12,196 | |
Mitsubishi UFJ Financial Group, Inc. | 5,701,300 | 29,338 | |
PNC Financial Services Group, Inc. | 2,235,658 | 123,923 | |
Regions Financial Corp. | 939,650 | 5,967 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
SVB Financial Group (a) | 375,890 | $ 16,310 | |
Wells Fargo & Co. | 6,835,441 | 194,330 | |
Wilmington Trust Corp., Delaware (c) | 1,904,737 | 24,990 | |
| 452,233 | ||
Consumer Finance - 0.4% | |||
Capital One Financial Corp. | 234,000 | 8,625 | |
Discover Financial Services | 951,232 | 13,013 | |
ORIX Corp. | 113,670 | 8,563 | |
| 30,201 | ||
Diversified Financial Services - 4.6% | |||
Bank of America Corp. | 8,210,707 | 124,639 | |
CME Group, Inc. | 70,600 | 20,249 | |
Deutsche Boerse AG | 120,642 | 7,898 | |
JPMorgan Chase & Co. | 3,546,450 | 138,099 | |
Moody's Corp. (c) | 620,146 | 17,110 | |
PICO Holdings, Inc. (a)(d) | 1,389,514 | 43,617 | |
| 351,612 | ||
Insurance - 3.0% | |||
ACE Ltd. | 202,700 | 9,987 | |
Assured Guaranty Ltd. | 466,790 | 10,577 | |
Berkshire Hathaway, Inc.: | |||
Class A (a) | 400 | 45,840 | |
Class B (a) | 645,409 | 49,329 | |
Conseco, Inc. (a) | 562,000 | 2,675 | |
Endurance Specialty Holdings Ltd. | 226,900 | 8,173 | |
Everest Re Group Ltd. | 141,300 | 12,115 | |
Genworth Financial, Inc. Class A (a) | 1,701,300 | 23,546 | |
Lincoln National Corp. | 837,000 | 20,573 | |
Maiden Holdings Ltd. | 692,542 | 4,702 | |
MBIA, Inc. (a)(c) | 1,608,900 | 7,932 | |
Platinum Underwriters Holdings Ltd. | 182,600 | 6,621 | |
Protective Life Corp. | 539,000 | 9,082 | |
Unum Group | 305,000 | 5,969 | |
Validus Holdings Ltd. | 268,300 | 7,110 | |
XL Capital Ltd. Class A | 245,355 | 4,115 | |
| 228,346 | ||
Real Estate Investment Trusts - 0.9% | |||
British Land Co. PLC | 56,163 | 390 | |
CBL & Associates Properties, Inc. | 633,200 | 6,332 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Developers Diversified Realty Corp. | 273,677 | $ 2,258 | |
Duke Realty LP | 298,000 | 3,373 | |
Education Realty Trust, Inc. | 423,700 | 2,237 | |
Extra Space Storage, Inc. | 172,100 | 1,953 | |
Franklin Street Properties Corp. | 80,500 | 1,011 | |
Kite Realty Group Trust | 79,948 | 303 | |
ProLogis Trust | 928,100 | 11,694 | |
Segro PLC | 724,800 | 3,600 | |
SL Green Realty Corp. | 322,200 | 14,657 | |
The Macerich Co. (c) | 139,133 | 4,292 | |
U-Store-It Trust | 568,200 | 3,932 | |
Vornado Realty Trust | 131,064 | 8,477 | |
| 64,509 | ||
Real Estate Management & Development - 1.2% | |||
Allgreen Properties Ltd. | 2,294,000 | 1,909 | |
Avatar Holdings, Inc. (a) | 48,140 | 815 | |
CB Richard Ellis Group, Inc. Class A (a) | 4,427,100 | 54,453 | |
Forest City Enterprises, Inc. Class A (a) | 173,100 | 1,958 | |
Iguatemi Empresa de Shopping Centers SA | 444,800 | 6,720 | |
Jones Lang LaSalle, Inc. | 283,200 | 16,145 | |
Kenedix, Inc. (a) | 11,537 | 3,575 | |
Unite Group PLC (a) | 1,835,539 | 8,408 | |
| 93,983 | ||
Thrifts & Mortgage Finance - 0.0% | |||
Ocwen Financial Corp. (a) | 250,434 | 2,294 | |
TOTAL FINANCIALS | 1,339,141 | ||
HEALTH CARE - 12.6% | |||
Biotechnology - 2.4% | |||
Alexion Pharmaceuticals, Inc. (a) | 126,500 | 5,866 | |
Amgen, Inc. (a) | 812,559 | 47,518 | |
Amylin Pharmaceuticals, Inc. (a) | 303,172 | 5,451 | |
Biogen Idec, Inc. (a) | 239,522 | 12,872 | |
Cephalon, Inc. (a) | 64,300 | 4,105 | |
China Biologic Products, Inc. (a)(c) | 321,800 | 3,189 | |
Clinical Data, Inc. (a)(c) | 513,709 | 7,896 | |
Dendreon Corp. (a)(c) | 404,500 | 11,205 | |
DUSA Pharmaceuticals, Inc. (a) | 163,847 | 229 | |
Genzyme Corp. (a) | 209,245 | 11,354 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
Human Genome Sciences, Inc. (a) | 555,400 | $ 14,701 | |
ImmunoGen, Inc. (a) | 47,800 | 334 | |
Incyte Corp. (a) | 341,800 | 3,650 | |
Maxygen, Inc. (a) | 401,767 | 2,246 | |
Micromet, Inc. (a) | 437,800 | 3,402 | |
OREXIGEN Therapeutics, Inc. (a) | 1,187,357 | 7,552 | |
Protalix BioTherapeutics, Inc. (a)(c) | 846,481 | 5,798 | |
Rigel Pharmaceuticals, Inc. (a) | 734,200 | 6,028 | |
Theravance, Inc. (a) | 1,182,461 | 12,972 | |
United Therapeutics Corp. (a) | 248,000 | 14,773 | |
| 181,141 | ||
Health Care Equipment & Supplies - 1.8% | |||
AGA Medical Holdings, Inc. | 237,300 | 3,401 | |
C. R. Bard, Inc. | 225,830 | 18,719 | |
Covidien PLC | 697,200 | 35,250 | |
ev3, Inc. (a) | 591,236 | 8,620 | |
Inverness Medical Innovations, Inc. (a) | 293,100 | 11,832 | |
Nobel Biocare Holding AG (Switzerland) | 229,864 | 6,761 | |
Orthofix International NV (a) | 323,288 | 9,741 | |
Orthovita, Inc. (a) | 1,134,800 | 4,131 | |
St. Jude Medical, Inc. (a) | 199,000 | 7,508 | |
Stryker Corp. | 274,700 | 14,262 | |
William Demant Holding AS (a) | 115,000 | 8,975 | |
Wright Medical Group, Inc. (a) | 439,808 | 7,864 | |
| 137,064 | ||
Health Care Providers & Services - 3.8% | |||
Aetna, Inc. | 666,800 | 19,984 | |
Brookdale Senior Living, Inc. (a) | 1,133,300 | 20,683 | |
CIGNA Corp. | 1,730,900 | 58,452 | |
Community Health Systems, Inc. (a) | 171,100 | 5,581 | |
DaVita, Inc. (a) | 140,690 | 8,408 | |
Emeritus Corp. (a) | 152,881 | 2,782 | |
Express Scripts, Inc. (a) | 390,400 | 32,739 | |
Henry Schein, Inc. (a) | 156,867 | 8,479 | |
McKesson Corp. | 188,200 | 11,070 | |
Medco Health Solutions, Inc. (a) | 451,000 | 27,727 | |
Psychiatric Solutions, Inc. (a) | 298,800 | 6,589 | |
Quest Diagnostics, Inc. | 297,647 | 16,570 | |
Triple-S Management Corp. (a) | 146,510 | 2,431 | |
UnitedHealth Group, Inc. | 1,283,100 | 42,342 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
Universal Health Services, Inc. Class B | 564,200 | $ 16,452 | |
VCA Antech, Inc. (a) | 325,800 | 8,272 | |
| 288,561 | ||
Life Sciences Tools & Services - 0.3% | |||
Life Technologies Corp. (a) | 155,100 | 7,710 | |
Thermo Fisher Scientific, Inc. (a) | 301,624 | 13,920 | |
| 21,630 | ||
Pharmaceuticals - 4.3% | |||
Abbott Laboratories | 188,809 | 9,996 | |
Allergan, Inc. | 207,965 | 11,958 | |
Ardea Biosciences, Inc. (a) | 602,700 | 8,824 | |
Cadence Pharmaceuticals, Inc. (a)(c) | 1,608,595 | 16,022 | |
Merck & Co., Inc. | 2,436,705 | 93,033 | |
Novartis AG sponsored ADR | 185,047 | 9,906 | |
Novo Nordisk AS Series B | 155,864 | 10,545 | |
Pfizer, Inc. | 6,057,825 | 113,039 | |
Pronova BioPharma ASA (a) | 1,990,900 | 5,858 | |
Sanofi-Aventis | 307,835 | 22,762 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 276,490 | 15,683 | |
ViroPharma, Inc. (a) | 848,400 | 8,382 | |
XenoPort, Inc. (a) | 305,634 | 5,648 | |
| 331,656 | ||
TOTAL HEALTH CARE | 960,052 | ||
INDUSTRIALS - 10.2% | |||
Aerospace & Defense - 2.1% | |||
Chemring Group PLC | 185,000 | 9,489 | |
European Aeronautic Defence and Space Co. EADS NV | 108,600 | 2,122 | |
GeoEye, Inc. (a) | 582,962 | 14,965 | |
Heico Corp. Class A | 354,003 | 11,944 | |
Honeywell International, Inc. | 328,600 | 12,697 | |
LMI Aerospace, Inc. (a) | 578,178 | 7,337 | |
Orbital Sciences Corp. (a) | 620,900 | 9,816 | |
Precision Castparts Corp. | 197,092 | 20,744 | |
Raytheon Co. | 322,686 | 16,918 | |
United Technologies Corp. | 824,739 | 55,653 | |
| 161,685 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Airlines - 0.4% | |||
Delta Air Lines, Inc. (a) | 1,693,375 | $ 20,710 | |
Southwest Airlines Co. | 732,000 | 8,294 | |
| 29,004 | ||
Building Products - 0.4% | |||
Masco Corp. | 1,332,600 | 18,070 | |
Owens Corning (a) | 623,625 | 16,046 | |
| 34,116 | ||
Commercial Services & Supplies - 0.8% | |||
Casella Waste Systems, Inc. Class A (a) | 376,513 | 1,638 | |
Clean Harbors, Inc. (a) | 188,790 | 10,810 | |
Consolidated Graphics, Inc. (a) | 97,564 | 3,293 | |
R.R. Donnelley & Sons Co. | 1,067,200 | 21,152 | |
Republic Services, Inc. | 584,495 | 15,659 | |
The Brink's Co. | 494,700 | 11,566 | |
| 64,118 | ||
Construction & Engineering - 0.5% | |||
Dycom Industries, Inc. (a) | 100,500 | 821 | |
Fluor Corp. | 193,106 | 8,755 | |
Great Lakes Dredge & Dock Corp. | 1,723,970 | 10,189 | |
Jacobs Engineering Group, Inc. (a) | 221,200 | 8,359 | |
MasTec, Inc. (a) | 177,000 | 2,175 | |
MYR Group, Inc. (a) | 281,857 | 4,470 | |
| 34,769 | ||
Electrical Equipment - 0.9% | |||
AMETEK, Inc. | 207,655 | 7,567 | |
Cooper Industries PLC Class A | 445,715 | 19,121 | |
First Solar, Inc. (a)(c) | 60,300 | 6,832 | |
Prysmian SpA | 466,800 | 8,472 | |
Renewable Energy Corp. AS (a)(c) | 1,545,903 | 8,965 | |
Schneider Electric SA | 97,225 | 10,030 | |
SunPower Corp. Class B (a) | 309,900 | 5,755 | |
| 66,742 | ||
Industrial Conglomerates - 0.8% | |||
Koninklijke Philips Electronics NV | 523,600 | 15,811 | |
Rheinmetall AG | 237,900 | 15,133 | |
Textron, Inc. | 1,472,724 | 28,762 | |
| 59,706 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Machinery - 2.1% | |||
Briggs & Stratton Corp. | 470,632 | $ 7,780 | |
Bucyrus International, Inc. Class A | 136,718 | 7,161 | |
Columbus McKinnon Corp. (NY Shares) (a) | 328,261 | 4,458 | |
Cummins, Inc. | 575,700 | 25,999 | |
Danaher Corp. | 199,700 | 14,249 | |
Ingersoll-Rand Co. Ltd. | 515,724 | 16,740 | |
JTEKT Corp. | 667,500 | 7,624 | |
Navistar International Corp. (a) | 821,700 | 30,395 | |
The Stanley Works | 239,271 | 12,263 | |
Timken Co. | 442,804 | 9,923 | |
Trinity Industries, Inc. | 458,500 | 7,171 | |
Vallourec SA | 76,600 | 13,175 | |
| 156,938 | ||
Professional Services - 0.3% | |||
Equifax, Inc. | 201,900 | 6,461 | |
Monster Worldwide, Inc. (a) | 565,700 | 8,819 | |
Randstad Holdings NV (a) | 12,723 | 611 | |
Robert Half International, Inc. | 402,300 | 10,830 | |
| 26,721 | ||
Road & Rail - 1.8% | |||
Arkansas Best Corp. | 366,400 | 8,259 | |
Avis Budget Group, Inc. (a) | 1,236,466 | 13,379 | |
Con-way, Inc. | 217,700 | 6,231 | |
CSX Corp. | 732,900 | 31,412 | |
Norfolk Southern Corp. | 286,100 | 13,464 | |
Saia, Inc. (a) | 533,135 | 6,398 | |
Saia, Inc. (a)(g) | 233,940 | 2,807 | |
Union Pacific Corp. | 746,900 | 45,187 | |
Universal Truckload Services, Inc. (d) | 857,948 | 14,448 | |
| 141,585 | ||
Trading Companies & Distributors - 0.1% | |||
Kaman Corp. | 201,100 | 5,005 | |
TOTAL INDUSTRIALS | 780,389 | ||
INFORMATION TECHNOLOGY - 16.7% | |||
Communications Equipment - 2.8% | |||
Adtran, Inc. | 501,894 | 10,640 | |
Aviat Networks, Inc. (a) | 460,443 | 3,311 | |
Cisco Systems, Inc. (a) | 4,683,100 | 105,229 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Communications Equipment - continued | |||
Comverse Technology, Inc. (a) | 1,435,800 | $ 13,654 | |
Infinera Corp. (a) | 1,006,668 | 6,896 | |
Juniper Networks, Inc. (a) | 1,513,200 | 37,573 | |
Motorola, Inc. | 3,018,336 | 18,563 | |
QUALCOMM, Inc. | 483,100 | 18,933 | |
| 214,799 | ||
Computers & Peripherals - 1.7% | |||
3PAR, Inc. (a) | 349,959 | 3,384 | |
Apple, Inc. (a) | 22,935 | 4,406 | |
Hewlett-Packard Co. | 1,893,500 | 89,127 | |
NCR Corp. (a) | 583,330 | 6,982 | |
Seagate Technology | 1,473,951 | 24,659 | |
| 128,558 | ||
Electronic Equipment & Components - 2.2% | |||
Agilent Technologies, Inc. | 1,207,061 | 33,834 | |
Amphenol Corp. Class A | 383,419 | 15,275 | |
Arrow Electronics, Inc. (a) | 591,800 | 15,547 | |
Avnet, Inc. (a) | 837,329 | 22,139 | |
Bell Microproducts, Inc. (a)(c)(d) | 2,045,259 | 9,245 | |
Corning, Inc. | 1,573,100 | 28,442 | |
Ingram Micro, Inc. Class A (a) | 481,054 | 8,130 | |
Itron, Inc. (a) | 173,753 | 10,693 | |
Keyence Corp. | 34,600 | 7,984 | |
Omron Corp. | 201,100 | 4,008 | |
Tyco Electronics Ltd. | 530,246 | 13,193 | |
| 168,490 | ||
Internet Software & Services - 1.7% | |||
Akamai Technologies, Inc. (a) | 338,200 | 8,354 | |
Google, Inc. Class A (a) | 167,010 | 88,418 | |
NetEase.com, Inc. sponsored ADR (a) | 313,000 | 10,266 | |
Open Text Corp. (a) | 141,400 | 5,571 | |
VeriSign, Inc. (a) | 781,536 | 17,905 | |
| 130,514 | ||
IT Services - 1.1% | |||
Alliance Data Systems Corp. (a) | 330,852 | 19,672 | |
Atos Origin SA (a) | 189,021 | 8,791 | |
China Information Security Technology, Inc. (a)(c) | 494,700 | 2,409 | |
Fidelity National Information Services, Inc. | 1,078,091 | 25,400 | |
Fiserv, Inc. (a) | 126,783 | 5,710 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
IT Services - continued | |||
Hewitt Associates, Inc. Class A (a) | 346,250 | $ 13,670 | |
Visa, Inc. Class A | 73,700 | 6,046 | |
| 81,698 | ||
Office Electronics - 0.1% | |||
Xerox Corp. | 1,246,700 | 10,871 | |
Semiconductors & Semiconductor Equipment - 4.8% | |||
Analog Devices, Inc. | 548,300 | 14,782 | |
ASM International NV (Netherlands) (a)(c) | 361,785 | 8,326 | |
Atmel Corp. (a) | 11,278,561 | 52,333 | |
Avago Technologies Ltd. | 1,749,400 | 30,405 | |
Cymer, Inc. (a) | 362,100 | 11,359 | |
Fairchild Semiconductor International, Inc. (a) | 2,503,938 | 22,485 | |
Himax Technologies, Inc. sponsored ADR | 2,332,136 | 6,926 | |
International Rectifier Corp. (a) | 181,102 | 3,267 | |
Intersil Corp. Class A | 371,641 | 5,006 | |
Kulicke & Soffa Industries, Inc. (a) | 1,693,800 | 7,808 | |
Lam Research Corp. (a) | 2,013,893 | 66,479 | |
LTX-Credence Corp. (a)(d) | 7,536,843 | 18,917 | |
Maxim Integrated Products, Inc. | 832,300 | 14,549 | |
MEMC Electronic Materials, Inc. (a) | 441,600 | 5,555 | |
Micron Technology, Inc. (a) | 2,784,000 | 24,276 | |
National Semiconductor Corp. | 675,877 | 8,962 | |
NVIDIA Corp. (a) | 679,712 | 10,461 | |
ON Semiconductor Corp. (a) | 3,074,454 | 22,167 | |
Standard Microsystems Corp. (a) | 228,900 | 4,567 | |
Teradyne, Inc. (a) | 784,300 | 7,325 | |
Varian Semiconductor Equipment Associates, Inc. (a) | 411,685 | 12,075 | |
Verigy Ltd. (a) | 655,600 | 7,107 | |
| 365,137 | ||
Software - 2.3% | |||
Adobe Systems, Inc. (a) | 414,390 | 13,385 | |
BMC Software, Inc. (a) | 266,400 | 10,294 | |
Citrix Systems, Inc. (a) | 323,390 | 13,437 | |
Giant Interactive Group, Inc. ADR (c) | 1,177,357 | 8,618 | |
ICSA (India) Ltd. | 804,419 | 2,807 | |
Informatica Corp. (a) | 442,000 | 10,471 | |
Microsoft Corp. | 2,770,515 | 78,073 | |
Nuance Communications, Inc. (a) | 525,318 | 7,890 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Software - continued | |||
Oracle Corp. | 1,242,600 | $ 28,654 | |
Ultimate Software Group, Inc. (a) | 44,245 | 1,323 | |
| 174,952 | ||
TOTAL INFORMATION TECHNOLOGY | 1,275,019 | ||
MATERIALS - 5.9% | |||
Chemicals - 2.9% | |||
Airgas, Inc. | 112,200 | 4,742 | |
Albemarle Corp. | 311,600 | 11,130 | |
Celanese Corp. Class A | 858,259 | 24,975 | |
Clariant AG (Reg.) (a) | 723,920 | 7,945 | |
Dow Chemical Co. | 1,233,260 | 33,409 | |
Ferro Corp. | 1,332,700 | 10,342 | |
Huabao International Holdings Ltd. | 6,355,000 | 6,466 | |
Israel Chemicals Ltd. | 647,400 | 8,571 | |
Monsanto Co. | 188,800 | 14,326 | |
Solutia, Inc. (a) | 1,731,400 | 23,807 | |
Spartech Corp. | 1,508,151 | 15,217 | |
STR Holdings, Inc. | 217,194 | 3,623 | |
Terra Industries, Inc. | 313,100 | 9,894 | |
The Mosaic Co. | 267,800 | 14,330 | |
W.R. Grace & Co. (a) | 1,493,725 | 35,670 | |
| 224,447 | ||
Construction Materials - 0.3% | |||
Eagle Materials, Inc. | 68,311 | 1,558 | |
HeidelbergCement AG | 328,244 | 19,780 | |
| 21,338 | ||
Containers & Packaging - 0.3% | |||
Owens-Illinois, Inc. (a) | 631,176 | 17,181 | |
Temple-Inland, Inc. | 351,000 | 6,097 | |
| 23,278 | ||
Metals & Mining - 2.2% | |||
Agnico-Eagle Mines Ltd. (Canada) | 115,400 | 5,833 | |
Canplats Resources Corp. (a) | 60,400 | 268 | |
Commercial Metals Co. | 928,300 | 12,755 | |
Eldorado Gold Corp. (a) | 3,182,978 | 37,804 | |
European Goldfields Ltd. (a) | 88,500 | 449 | |
First Quantum Minerals Ltd. | 24,100 | 1,748 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Metals & Mining - continued | |||
Grande Cache Coal Corp. (a) | 835,400 | $ 4,078 | |
Gulf Resources, Inc. (a) | 582,180 | 5,519 | |
Gulf Resources, Inc. (a)(g) | 1,894,460 | 16,164 | |
Ivanhoe Mines Ltd. (a) | 1,847,200 | 25,878 | |
Lihir Gold Ltd. | 4,086,470 | 10,009 | |
Mitsubishi Materials Corp. (a) | 1,689,000 | 4,397 | |
Newcrest Mining Ltd. | 451,358 | 12,584 | |
Nucor Corp. | 58,723 | 2,396 | |
Quadra Mining Ltd. (a) | 80,300 | 1,075 | |
Randgold Resources Ltd. sponsored ADR | 129,500 | 8,926 | |
Rio Tinto PLC (Reg.) | 182,200 | 8,885 | |
Seabridge Gold, Inc. (a) | 48,300 | 1,163 | |
Silver Wheaton Corp. (a) | 60,300 | 832 | |
Steel Dynamics, Inc. | 217,400 | 3,300 | |
Timminco Ltd. (a)(c) | 1,135,575 | 1,243 | |
| 165,306 | ||
Paper & Forest Products - 0.2% | |||
Weyerhaeuser Co. | 499,600 | 19,934 | |
TOTAL MATERIALS | 454,303 | ||
TELECOMMUNICATION SERVICES - 1.4% | |||
Diversified Telecommunication Services - 0.8% | |||
Iliad Group SA | 125,332 | 13,891 | |
Qwest Communications International, Inc. | 2,647,771 | 11,147 | |
Verizon Communications, Inc. | 1,174,861 | 34,564 | |
| 59,602 | ||
Wireless Telecommunication Services - 0.6% | |||
Leap Wireless International, Inc. (a)(c) | 885,058 | 11,674 | |
Sprint Nextel Corp. (a) | 9,404,815 | 30,848 | |
Vivo Participacoes SA sponsored ADR | 217,200 | 6,079 | |
| 48,601 | ||
TOTAL TELECOMMUNICATION SERVICES | 108,203 | ||
UTILITIES - 2.3% | |||
Electric Utilities - 1.0% | |||
Allegheny Energy, Inc. | 854,700 | 17,906 | |
Centrais Eletricas Brasileiras SA (Electrobras) (PN-B) sponsored ADR (c) | 261,500 | 4,767 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - continued | |||
Electric Utilities - continued | |||
Companhia Energetica de Minas Gerais (CEMIG) (PN) sponsored ADR (non-vtg.) (c) | 498,500 | $ 8,310 | |
CPFL Energia SA sponsored ADR (c) | 64,400 | 3,805 | |
Entergy Corp. | 217,912 | 16,629 | |
FirstEnergy Corp. | 555,000 | 24,209 | |
| 75,626 | ||
Gas Utilities - 0.2% | |||
EQT Corp. | 104,600 | 4,604 | |
Xinao Gas Holdings Ltd. | 3,604,000 | 8,569 | |
| 13,173 | ||
Independent Power Producers & Energy Traders - 0.7% | |||
AES Corp. | 1,057,600 | 13,357 | |
Constellation Energy Group, Inc. | 144,900 | 4,677 | |
NRG Energy, Inc. (a) | 1,255,353 | 30,267 | |
RRI Energy, Inc. (a) | 523,050 | 2,589 | |
| 50,890 | ||
Multi-Utilities - 0.4% | |||
Alliant Energy Corp. | 200,900 | 6,268 | |
CMS Energy Corp. | 1,840,984 | 27,928 | |
Sempra Energy | 3,465 | 176 | |
| 34,372 | ||
TOTAL UTILITIES | 174,061 | ||
TOTAL COMMON STOCKS (Cost $7,087,743) | 7,424,468 | ||
Convertible Preferred Stocks - 1.0% | |||
|
|
|
|
ENERGY - 0.2% | |||
Oil, Gas & Consumable Fuels - 0.2% | |||
SandRidge Energy, Inc. 8.50% (a) | 80,500 | 10,182 | |
FINANCIALS - 0.5% | |||
Diversified Financial Services - 0.5% | |||
Bank of America Corp. | 1,529,700 | 23,098 | |
Citigroup, Inc. 7.50% | 157,200 | 16,434 | |
| 39,532 | ||
Convertible Preferred Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - 0.3% | |||
Metals & Mining - 0.3% | |||
Freeport-McMoRan Copper & Gold, Inc. 6.75% | 227,900 | $ 22,434 | |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $67,154) | 72,148 | ||
Investment Companies - 0.4% | |||
|
|
|
|
Ares Capital Corp. | 2,665,050 | 32,780 |
Corporate Bonds - 0.9% | ||||
| Principal Amount (000s) |
| ||
Convertible Bonds - 0.6% | ||||
FINANCIALS - 0.3% | ||||
Real Estate Management & Development - 0.1% | ||||
Forest City Enterprises, Inc. 5% 10/15/16 (e) | $ 6,170 | 6,575 | ||
Thrifts & Mortgage Finance - 0.2% | ||||
MGIC Investment Corp. 9% 4/1/63 (a)(e) | 15,533 | 10,679 | ||
TOTAL FINANCIALS | 17,254 | |||
HEALTH CARE - 0.2% | ||||
Biotechnology - 0.1% | ||||
Incyte Corp. 4.75% 10/1/15 (e) | 5,630 | 8,242 | ||
Pharmaceuticals - 0.1% | ||||
Endo Pharmaceuticals Holdings, Inc. 1.75% 4/15/15 (e) | 8,010 | 7,371 | ||
TOTAL HEALTH CARE | 15,613 | |||
INDUSTRIALS - 0.0% | ||||
Trading Companies & Distributors - 0.0% | ||||
United Rentals, Inc. 4% 11/15/15 | 1,820 | 1,764 | ||
INFORMATION TECHNOLOGY - 0.1% | ||||
Semiconductors & Semiconductor Equipment - 0.1% | ||||
Amkor Technology, Inc. 6% 4/15/14 (e) | 4,010 | 8,327 | ||
TOTAL CONVERTIBLE BONDS | 42,958 | |||
Corporate Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Nonconvertible Bonds - 0.3% | ||||
ENERGY - 0.1% | ||||
Oil, Gas & Consumable Fuels - 0.1% | ||||
OPTI Canada, Inc.: | ||||
7.875% 12/15/14 | $ 5,385 | $ 4,671 | ||
8.25% 12/15/14 | 5,330 | 4,704 | ||
| 9,375 | |||
INFORMATION TECHNOLOGY - 0.2% | ||||
Semiconductors & Semiconductor Equipment - 0.2% | ||||
Freescale Semiconductor, Inc. 10.125% 12/15/16 | 19,510 | 15,413 | ||
TOTAL NONCONVERTIBLE BONDS | 24,788 | |||
TOTAL CORPORATE BONDS (Cost $54,005) | 67,746 |
Money Market Funds - 1.9% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.17% (f) | 21,673,539 | 21,674 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(f) | 126,822,619 | 126,823 | |
TOTAL MONEY MARKET FUNDS (Cost $148,497) | 148,497 | ||
TOTAL INVESTMENT PORTFOLIO - 101.4% (Cost $7,391,037) | 7,745,639 | ||
NET OTHER ASSETS - (1.4)% | (107,658) | ||
NET ASSETS - 100% | $ 7,637,981 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated company |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $45,998,000 or 0.6% of net assets. |
(f) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $18,971,000 or 0.2% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Gulf Resources, Inc. | 12/11/09 | $ 16,103 |
Saia, Inc. | 12/22/09 | $ 2,690 |
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 | $ 39 |
Fidelity Securities Lending Cash Central Fund | 338 |
Total | $ 377 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
Bell Microproducts, Inc. | $ 3,211 | $ - | $ - | $ - | $ 9,245 |
DUSA Pharmaceuticals, Inc. | 1,459 | - | 1,614 | - | - |
Great Lakes Dredge & Dock Corp. | 17,803 | - | 8,846 | 69 | - |
LTX-Credence Corp. | 6,783 | - | - | - | 18,917 |
PICO Holdings, Inc. | 48,762 | - | 7,105 | - | 43,617 |
Tween Brands, Inc. | 14,547 | - | 17,581 | - | - |
Universal Truckload Services, Inc. | 18,364 | - | 4,947 | - | 14,448 |
Total | $ 110,929 | $ - | $ 40,093 | $ 69 | $ 86,227 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 752,828 | $ 719,608 | $ 33,220 | $ - |
Consumer Staples | 732,032 | 588,409 | 143,623 | - |
Energy | 858,622 | 836,371 | 22,251 | - |
Financials | 1,378,673 | 1,322,332 | 56,341 | - |
Health Care | 960,052 | 905,151 | 54,901 | - |
Industrials | 780,389 | 696,581 | 83,808 | - |
Information Technology | 1,275,019 | 1,257,902 | 17,117 | - |
Materials | 476,737 | 401,529 | 75,208 | - |
Telecommunication Services | 108,203 | 94,312 | 13,891 | - |
Utilities | 174,061 | 174,061 | - | - |
Investment Companies | 32,780 | 32,780 | - | - |
Corporate Bonds | 67,746 | - | 67,746 | - |
Money Market Funds | 148,497 | 148,497 | - | - |
Total Investments in Securities: | $ 7,745,639 | $ 7,177,533 | $ 568,106 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 84.4% |
Canada | 2.2% |
Switzerland | 1.7% |
Japan | 1.2% |
Cayman Islands | 1.1% |
Bermuda | 1.1% |
Norway | 1.0% |
Ireland | 1.0% |
Others (individually less than 1%) | 6.3% |
| 100.0% |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $698,365,000 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $988,540,000 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $119,142) - See accompanying schedule: Unaffiliated issuers (cost $7,151,629) | $ 7,510,915 |
|
Fidelity Central Funds (cost $148,497) | 148,497 |
|
Other affiliated issuers (cost $90,911) | 86,227 |
|
Total Investments (cost $7,391,037) |
| $ 7,745,639 |
Cash | 15 | |
Receivable for investments sold | 192,383 | |
Receivable for fund shares sold | 26,355 | |
Dividends receivable | 3,835 | |
Interest receivable | 650 | |
Distributions receivable from Fidelity Central Funds | 60 | |
Prepaid expenses | 28 | |
Other receivables | 541 | |
Total assets | 7,969,506 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 188,173 | |
Payable for fund shares redeemed | 9,189 | |
Accrued management fee | 4,312 | |
Other affiliated payables | 1,757 | |
Other payables and accrued expenses | 1,271 | |
Collateral on securities loaned, at value | 126,823 | |
Total liabilities | 331,525 | |
|
|
|
Net Assets | $ 7,637,981 | |
Net Assets consist of: |
| |
Paid in capital | $ 8,547,393 | |
Distributions in excess of net investment income | (553) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (1,262,506) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 353,647 | |
Net Assets | $ 7,637,981 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | January 31, 2010 (Unaudited) | |
|
|
|
Dividend Growth: | $ 22.79 | |
|
|
|
Class K: | $ 22.78 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended January 31, 2010 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends (including $69 earned from other affiliated issuers) |
| $ 45,702 |
Interest |
| 2,648 |
Income from Fidelity Central Funds |
| 377 |
Total income |
| 48,727 |
|
|
|
Expenses | ||
Management fee | $ 21,374 | |
Performance adjustment | 2,187 | |
Transfer agent fees | 9,690 | |
Accounting and security lending fees | 689 | |
Custodian fees and expenses | 142 | |
Independent trustees' compensation | 24 | |
Registration fees | 105 | |
Audit | 41 | |
Legal | 36 | |
Miscellaneous | 66 | |
Total expenses before reductions | 34,354 | |
Expense reductions | (468) | 33,886 |
Net investment income (loss) | 14,841 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 552,206 | |
Other affiliated issuers | (4,881) |
|
Foreign currency transactions | (229) | |
Capital gain distributions from Fidelity Central Funds | 5 |
|
Total net realized gain (loss) |
| 547,101 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 340,401 | |
Assets and liabilities in foreign currencies | 13 | |
Total change in net unrealized appreciation (depreciation) |
| 340,414 |
Net gain (loss) | 887,515 | |
Net increase (decrease) in net assets resulting from operations | $ 902,356 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended January 31, 2010 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 14,841 | $ 82,873 |
Net realized gain (loss) | 547,101 | (1,751,666) |
Change in net unrealized appreciation (depreciation) | 340,414 | 144,851 |
Net increase (decrease) in net assets resulting | 902,356 | (1,523,942) |
Distributions to shareholders from net investment income | (39,369) | (132,865) |
Distributions to shareholders from net realized gain | (16,428) | (361,284) |
Total distributions | (55,797) | (494,149) |
Share transactions - net increase (decrease) | (13,632) | (678,997) |
Total increase (decrease) in net assets | 832,927 | (2,697,088) |
|
|
|
Net Assets | ||
Beginning of period | 6,805,054 | 9,502,142 |
End of period (including distributions in excess of net investment income of $553 and undistributed net investment income of $23,975, respectively) | $ 7,637,981 | $ 6,805,054 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Dividend Growth
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 20.25 | $ 25.40 | $ 32.73 | $ 29.50 | $ 28.85 | $ 26.58 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .04 | .24 | .43 | .52 G | .35 | .45 H |
Net realized and unrealized gain (loss) | 2.67 | (4.01) | (5.08) | 3.98 | .99 | 2.21 |
Total from investment operations | 2.71 | (3.77) | (4.65) | 4.50 | 1.34 | 2.66 |
Distributions from net investment income | (.12) | (.37) | (.45) | (.45) | (.31) | (.39) |
Distributions from net realized gain | (.05) | (1.01) | (2.23) | (.82) | (.38) | - |
Total distributions | (.17) | (1.38) J | (2.68) | (1.27) | (.69) | (.39) |
Net asset value, end of period | $ 22.79 | $ 20.25 | $ 25.40 | $ 32.73 | $ 29.50 | $ 28.85 |
Total Return B, C | 13.37% | (15.33)% | (15.45)% | 15.62% | 4.73% | 10.08% |
Ratios to Average Net Assets E, I |
|
|
|
|
| |
Expenses before reductions | .91% A | .62% | .64% | .61% | .60% | .68% |
Expenses net of fee waivers, if any | .91% A | .62% | .64% | .61% | .60% | .68% |
Expenses net of all reductions | .89% A | .62% | .63% | .60% | .59% | .66% |
Net investment income (loss) | .38% A | 1.34% | 1.47% | 1.62% G | 1.21% | 1.64% H |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (in millions) | $ 7,367 | $ 6,603 | $ 9,502 | $ 16,265 | $ 15,523 | $ 17,399 |
Portfolio turnover rate F | 85% A | 177% | 52% | 36% | 30% | 26% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.40%.
H Investment income per share reflects a special dividend which amounted to $.16 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.06%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Total distributions of $1.38 per share is comprised of distributions from net investment income of $.374 and distributions from net realized gain of $1.005 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended | Years ended July 31, | |
(Unaudited) | 2009 | 2008 G | |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 20.26 | $ 25.41 | $ 27.72 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | .07 | .26 | .10 |
Net realized and unrealized gain (loss) | 2.66 | (4.00) | (2.41) |
Total from investment operations | 2.73 | (3.74) | (2.31) |
Distributions from net investment income | (.16) | (.41) | - |
Distributions from net realized gain | (.05) | (1.01) | - |
Total distributions | (.21) | (1.41) I | - |
Net asset value, end of period | $ 22.78 | $ 20.26 | $ 25.41 |
Total Return B, C | 13.48% | (15.16)% | (8.33)% |
Ratios to Average Net Assets E, H |
|
|
|
Expenses before reductions | .70% A | .40% | .47% A |
Expenses net of fee waivers, if any | .70% A | .40% | .47% A |
Expenses net of all reductions | .69% A | .39% | .47% A |
Net investment income (loss) | .59% A | 1.57% | 1.66% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 271,209 | $ 201,625 | $ 92 |
Portfolio turnover rate F | 85% A | 177% | 52% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
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 Total distributions of $1.41 per share is comprised of distributions from net investment income of $.407 and distributions from net realized gain of $1.005 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Dividend Growth Fund (the Fund) is a fund of Fidelity Securities Fund (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 Dividend Growth and Class K 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 commencement of Class K, the Fund began offering conversion privileges between Dividend Growth and Class K to eligible shareholders of Dividend Growth. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as level 2 in the hierarchy.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, deferred trustee compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,000,739 |
|
Gross unrealized depreciation | (719,166) |
|
Net unrealized appreciation (depreciation) | $ 281,573 |
|
|
|
|
Tax cost | $ 7,464,066 |
|
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $3,148,692 and $3,196,145, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
of the Fund, Dividend Growth, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .62% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Dividend Growth. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Dividend Growth | $ 9,618 | .26 |
Class K | 72 | .06 |
| $ 9,690 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $26 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. The interest expense amounted to four hundred fifty-five dollars under the interfund lending program. At period end, there were no interfund loans outstanding.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Interfund Lending Program - continued
The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily | Weighted Average |
Borrower | $ 43,369 | .38% |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $15 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $338.
Semiannual Report
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $468 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Dividend Growth | $ 37,603 | $ 131,611 |
Class K | 1,766 | 1,254 |
Total | $ 39,369 | $ 132,865 |
From net realized gain |
|
|
Dividend Growth | $ 15,884 | $ 361,247 |
Class K | 544 | 37 |
Total | $ 16,428 | $ 361,284 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Dividend Growth |
|
|
|
|
Shares sold | 46,542 | 75,287 | $ 1,066,621 | $ 1,282,313 |
Conversion to Class K | (734) | (9,623) | (15,619) | (178,188) |
Reinvestment of distributions | 2,281 | 21,264 | 51,426 | 478,613 |
Shares redeemed | (50,947) | (134,869) | (1,159,555) | (2,446,584) |
Net increase (decrease) | (2,858) | (47,941) | $ (57,127) | $ (863,846) |
Class K |
|
|
|
|
Shares sold | 2,234 | 2,088 | $ 50,856 | $ 35,139 |
Conversion from Dividend Growth | 733 | 9,623 | 15,619 | 178,188 |
Reinvestment of distributions | 102 | 86 | 2,310 | 1,291 |
Shares redeemed | (1,116) | (1,850) | (25,290) | (29,769) |
Net increase (decrease) | 1,953 | 9,947 | $ 43,495 | $ 184,849 |
A Conversion transactions for Class K and Dividend Growth are for the period August 1, 2009 to August 31, 2009.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Managing Your Investments
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(computer_graphic)
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* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
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Semiannual Report
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Semiannual Report
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Semiannual Report
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DGF-USAN-0310 1.789283.107
Fidelity®
Dividend Growth
Fund -
Class K
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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 (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Dividend Growth | .91% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,133.70 | $ 4.89 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.62 | $ 4.63 |
Class K | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,134.80 | $ 3.77 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.68 | $ 3.57 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Wells Fargo & Co. | 2.5 | 2.2 |
JPMorgan Chase & Co. | 1.8 | 1.9 |
Bank of America Corp. | 1.6 | 2.2 |
PNC Financial Services Group, Inc. | 1.6 | 1.0 |
Pfizer, Inc. | 1.5 | 1.6 |
Cisco Systems, Inc. | 1.4 | 1.6 |
The Coca-Cola Co. | 1.3 | 0.9 |
Merck & Co., Inc. | 1.2 | 0.8 |
Hewlett-Packard Co. | 1.2 | 1.2 |
Google, Inc. Class A | 1.2 | 0.5 |
| 15.3 | |
Top Five Market Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Financials | 18.3 | 16.4 |
Information Technology | 17.0 | 18.0 |
Health Care | 12.8 | 12.3 |
Energy | 11.4 | 11.9 |
Industrials | 10.2 | 10.0 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks and |
| ![]() | Stocks and |
| ||
![]() | Bonds 0.3% |
| ![]() | Bonds 0.2% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 15.6% |
| ** Foreign investments | 12.0% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.2% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 9.9% | |||
Auto Components - 0.5% | |||
BorgWarner, Inc. | 115,300 | $ 4,046 | |
Johnson Controls, Inc. | 480,736 | 13,379 | |
Stoneridge, Inc. (a) | 837,341 | 5,845 | |
The Goodyear Tire & Rubber Co. (a) | 1,019,300 | 13,597 | |
| 36,867 | ||
Automobiles - 0.6% | |||
Fiat SpA (a) | 507,800 | 6,363 | |
Harley-Davidson, Inc. | 333,605 | 7,586 | |
Mazda Motor Corp. (a) | 1,770,000 | 4,804 | |
Thor Industries, Inc. | 540,300 | 17,155 | |
Winnebago Industries, Inc. (a) | 566,454 | 6,769 | |
| 42,677 | ||
Diversified Consumer Services - 0.3% | |||
Apollo Group, Inc. Class A (non-vtg.) (a) | 100,800 | 6,107 | |
Service Corp. International | 1,072,000 | 8,222 | |
Stewart Enterprises, Inc. Class A | 2,333,532 | 11,831 | |
| 26,160 | ||
Hotels, Restaurants & Leisure - 1.7% | |||
Brinker International, Inc. | 919,200 | 15,001 | |
Burger King Holdings, Inc. | 56,300 | 982 | |
DineEquity, Inc. (a)(c) | 766,100 | 17,421 | |
NH Hoteles SA (a) | 1,166,400 | 5,755 | |
O'Charleys, Inc. (a) | 833,800 | 6,170 | |
Red Robin Gourmet Burgers, Inc. (a) | 152,200 | 2,805 | |
Scientific Games Corp. Class A (a) | 120,700 | 1,699 | |
Sol Melia SA | 446,800 | 3,666 | |
Sonic Corp. (a) | 1,097,100 | 9,249 | |
Starwood Hotels & Resorts Worldwide, Inc. | 456,913 | 15,224 | |
WMS Industries, Inc. (a) | 147,900 | 5,484 | |
Wyndham Worldwide Corp. | 2,170,315 | 45,555 | |
| 129,011 | ||
Household Durables - 1.0% | |||
Black & Decker Corp. | 129,200 | 8,354 | |
Hooker Furniture Corp. | 341,942 | 4,346 | |
M.D.C. Holdings, Inc. | 120,201 | 4,039 | |
Mohawk Industries, Inc. (a) | 359,600 | 14,891 | |
Newell Rubbermaid, Inc. | 541,100 | 7,343 | |
Pulte Homes, Inc. | 1,018,282 | 10,712 | |
Stanley Furniture Co., Inc. (a) | 196,788 | 1,919 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Household Durables - continued | |||
Tempur-Pedic International, Inc. (a) | 96,500 | $ 2,402 | |
Whirlpool Corp. | 273,600 | 20,569 | |
| 74,575 | ||
Media - 2.4% | |||
Cablevision Systems Corp. - NY Group Class A | 529,838 | 13,585 | |
CC Media Holdings, Inc. Class A (a) | 1,200,000 | 3,720 | |
Comcast Corp.: | |||
Class A | 51,870 | 821 | |
Class A (special) (non-vtg.) | 362,510 | 5,488 | |
DIRECTV (a) | 760,238 | 23,073 | |
DISH Network Corp. Class A | 933,373 | 17,043 | |
Informa PLC | 1,712,482 | 8,974 | |
Lamar Advertising Co. Class A (a) | 559,601 | 16,005 | |
Liberty Media Corp. Starz Series A (a) | 266,689 | 12,508 | |
McGraw-Hill Companies, Inc. | 460,900 | 16,339 | |
MDC Partners, Inc. Class A (sub. vtg.) | 49,200 | 408 | |
The Walt Disney Co. | 495,767 | 14,650 | |
Time Warner Cable, Inc. | 788,926 | 34,389 | |
United Business Media Ltd. | 623,900 | 4,236 | |
Viacom, Inc. Class B (non-vtg.) (a) | 381,000 | 11,102 | |
| 182,341 | ||
Multiline Retail - 0.4% | |||
Target Corp. | 659,738 | 33,825 | |
Specialty Retail - 2.8% | |||
Advance Auto Parts, Inc. | 516,500 | 20,376 | |
AnnTaylor Stores Corp. (a) | 1,050,500 | 13,194 | |
Asbury Automotive Group, Inc. (a) | 432,400 | 4,787 | |
Best Buy Co., Inc. | 217,200 | 7,960 | |
Big 5 Sporting Goods Corp. | 551,000 | 8,050 | |
Cabela's, Inc. Class A (a)(c) | 390,446 | 6,294 | |
Carphone Warehouse Group PLC | 1,392,534 | 4,226 | |
Casual Male Retail Group, Inc. (a) | 2,353,500 | 6,590 | |
Gymboree Corp. (a) | 172,600 | 6,733 | |
Hengdeli Holdings Ltd. | 25,940,000 | 8,620 | |
Home Depot, Inc. | 382,368 | 10,710 | |
Lowe's Companies, Inc. | 2,024,386 | 43,828 | |
Lumber Liquidators Holdings, Inc. (a)(c) | 236,797 | 5,607 | |
MarineMax, Inc. (a) | 484,600 | 4,376 | |
OfficeMax, Inc. (a) | 828,306 | 10,743 | |
RadioShack Corp. | 297,600 | 5,809 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
Sally Beauty Holdings, Inc. (a) | 1,207,300 | $ 10,069 | |
Staples, Inc. | 1,047,432 | 24,573 | |
The Children's Place Retail Stores, Inc. (a)(c) | 257,414 | 8,186 | |
Zale Corp. (a)(c) | 19,453 | 42 | |
| 210,773 | ||
Textiles, Apparel & Luxury Goods - 0.2% | |||
American Apparel, Inc. (a)(c) | 1,455,500 | 4,119 | |
Bosideng International Holdings Ltd. | 2,252,000 | 447 | |
G-III Apparel Group Ltd. (a) | 40,200 | 700 | |
Iconix Brand Group, Inc. (a) | 323,200 | 4,079 | |
Steven Madden Ltd. (a) | 168,938 | 6,781 | |
Trinity Ltd. | 1,006,000 | 473 | |
| 16,599 | ||
TOTAL CONSUMER DISCRETIONARY | 752,828 | ||
CONSUMER STAPLES - 9.6% | |||
Beverages - 2.1% | |||
Anheuser-Busch InBev SA NV | 596,581 | 29,770 | |
Carlsberg AS Series B | 140,800 | 10,501 | |
Dr Pepper Snapple Group, Inc. | 293,569 | 8,120 | |
Fomento Economico Mexicano SAB de CV sponsored ADR | 71,000 | 2,993 | |
Molson Coors Brewing Co. Class B | 193,005 | 8,106 | |
Remy Cointreau SA | 56,912 | 2,852 | |
The Coca-Cola Co. | 1,827,359 | 99,134 | |
| 161,476 | ||
Food & Staples Retailing - 2.5% | |||
CVS Caremark Corp. | 1,472,497 | 47,665 | |
Kroger Co. | 832,100 | 17,832 | |
PriceSmart, Inc. | 405,565 | 8,115 | |
Safeway, Inc. | 438,400 | 9,842 | |
Wal-Mart Stores, Inc. | 1,282,863 | 68,543 | |
Walgreen Co. | 502,773 | 18,125 | |
Winn-Dixie Stores, Inc. (a) | 1,720,396 | 17,428 | |
| 187,550 | ||
Food Products - 2.6% | |||
Bunge Ltd. | 221,138 | 13,001 | |
Calavo Growers, Inc. | 378,032 | 6,336 | |
General Mills, Inc. | 112,596 | 8,029 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Food Products - continued | |||
Kellogg Co. | 177,028 | $ 9,634 | |
Kerry Group PLC Class A | 92,509 | 2,741 | |
Leroy Seafood Group ASA (c) | 447,100 | 9,301 | |
M. Dias Branco SA | 12,100 | 312 | |
Marine Harvest ASA (a)(c) | 59,039,000 | 52,740 | |
Nestle SA (Reg.) | 401,433 | 19,028 | |
Pilgrims Pride Corp. (a) | 129,800 | 1,151 | |
Ralcorp Holdings, Inc. (a) | 173,100 | 10,698 | |
Smithfield Foods, Inc. (a) | 1,206,600 | 18,171 | |
Tingyi (Cayman Island) Holding Corp. | 2,252,000 | 4,873 | |
Tyson Foods, Inc. Class A | 1,997,337 | 27,603 | |
Unilever NV (Certificaten Van Aandelen) (Bearer) unit | 413,800 | 12,670 | |
| 196,288 | ||
Household Products - 0.7% | |||
Energizer Holdings, Inc. (a) | 210,587 | 11,688 | |
Procter & Gamble Co. | 649,201 | 39,958 | |
| 51,646 | ||
Personal Products - 0.9% | |||
Avon Products, Inc. | 723,828 | 21,816 | |
BaWang International (Group) Holding Ltd. | 19,040,000 | 11,011 | |
Hengan International Group Co. Ltd. | 1,344,000 | 9,002 | |
Herbalife Ltd. | 193,040 | 7,500 | |
Hypermarcas SA (a) | 394,400 | 4,557 | |
NBTY, Inc. (a) | 379,600 | 16,904 | |
| 70,790 | ||
Tobacco - 0.8% | |||
Imperial Tobacco Group PLC | 124,675 | 4,020 | |
Japan Tobacco, Inc. | 1,166 | 4,224 | |
Lorillard, Inc. | 202,325 | 15,316 | |
Philip Morris International, Inc. | 894,800 | 40,722 | |
| 64,282 | ||
TOTAL CONSUMER STAPLES | 732,032 | ||
ENERGY - 11.1% | |||
Energy Equipment & Services - 3.6% | |||
Baker Hughes, Inc. | 381,990 | 17,297 | |
BJ Services Co. | 530,926 | 10,974 | |
Global Industries Ltd. (a) | 1,395,111 | 9,724 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Energy Equipment & Services - continued | |||
Halliburton Co. | 731,100 | $ 21,355 | |
ION Geophysical Corp. (a) | 257,400 | 1,223 | |
Nabors Industries Ltd. (a) | 562,382 | 12,541 | |
National Oilwell Varco, Inc. | 1,392,245 | 56,943 | |
Noble Corp. | 282,108 | 11,375 | |
Parker Drilling Co. (a) | 821,299 | 3,950 | |
Patterson-UTI Energy, Inc. | 249,300 | 3,829 | |
Pride International, Inc. (a) | 267,136 | 7,907 | |
Schlumberger Ltd. | 490,626 | 31,135 | |
Scorpion Offshore Ltd. (a) | 2,191,000 | 9,527 | |
Seahawk Drilling, Inc. (a) | 188,265 | 3,937 | |
Smith International, Inc. | 311,277 | 9,438 | |
Superior Well Services, Inc. (a) | 288,900 | 4,573 | |
Union Drilling, Inc. (a) | 748,143 | 5,439 | |
Vantage Drilling Co. (a) | 2,868,400 | 4,044 | |
Weatherford International Ltd. (a) | 3,065,161 | 48,062 | |
| 273,273 | ||
Oil, Gas & Consumable Fuels - 7.5% | |||
Alpha Natural Resources, Inc. (a) | 196,077 | 7,963 | |
Anadarko Petroleum Corp. | 44,200 | 2,819 | |
Arch Coal, Inc. | 1,226,300 | 25,838 | |
Arena Resources, Inc. (a) | 80,400 | 3,083 | |
Berry Petroleum Co. Class A | 891,200 | 24,134 | |
Brigham Exploration Co. (a) | 1,867,101 | 24,347 | |
Cabot Oil & Gas Corp. | 162,706 | 6,227 | |
Chesapeake Energy Corp. | 1,121,197 | 27,783 | |
Compton Petroleum Corp. (a) | 2,393,100 | 2,126 | |
Concho Resources, Inc. (a) | 250,460 | 11,238 | |
Denbury Resources, Inc. (a) | 991,590 | 13,436 | |
EOG Resources, Inc. | 248,600 | 22,478 | |
EXCO Resources, Inc. | 914,357 | 16,038 | |
Heritage Oil PLC (a) | 321,800 | 2,542 | |
Hess Corp. | 232,500 | 13,436 | |
Holly Corp. | 318,100 | 8,302 | |
International Coal Group, Inc. (a) | 1,608,835 | 5,744 | |
InterOil Corp. (a)(c) | 128,700 | 7,607 | |
Iteration Energy Ltd. (a) | 804,400 | 910 | |
Keyera Facilities Income Fund | 341,442 | 7,747 | |
Lukoil Oil Co. sponsored ADR | 84,787 | 4,655 | |
Niko Resources Ltd. | 101,000 | 9,326 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Northern Oil & Gas, Inc. (a)(c) | 1,276,325 | $ 14,103 | |
Occidental Petroleum Corp. | 530,820 | 41,584 | |
OPTI Canada, Inc. (a) | 5,365,900 | 9,685 | |
OPTI Canada, Inc. (a)(e) | 2,661,400 | 4,804 | |
PetroBakken Energy Ltd. Class A (c) | 529,826 | 14,691 | |
Petrohawk Energy Corp. (a) | 2,920,538 | 65,216 | |
Petroleo Brasileiro SA - Petrobras sponsored ADR | 88,400 | 3,586 | |
Plains Exploration & Production Co. (a) | 1,363,468 | 45,472 | |
Range Resources Corp. | 510,200 | 23,469 | |
Rex Energy Corp. (a) | 257,100 | 3,185 | |
Rosetta Resources, Inc. (a) | 388,475 | 7,987 | |
SandRidge Energy, Inc. (a)(c) | 2,594,200 | 21,947 | |
Southwestern Energy Co. (a) | 823,537 | 35,313 | |
Suncor Energy, Inc. | 687,500 | 21,706 | |
Venoco, Inc. (a) | 596,419 | 6,877 | |
Whiting Petroleum Corp. (a) | 116,625 | 7,763 | |
| 575,167 | ||
TOTAL ENERGY | 848,440 | ||
FINANCIALS - 17.5% | |||
Capital Markets - 1.5% | |||
AllianceBernstein Holding LP | 261,000 | 6,718 | |
Bank of New York Mellon Corp. | 481,752 | 14,014 | |
Bank Sarasin & Co. Ltd. Series B (Reg.) (a) | 196,440 | 6,707 | |
Charles Schwab Corp. | 867,770 | 15,872 | |
GCA Savvian Group Corp. (c) | 2,250 | 2,617 | |
Janus Capital Group, Inc. | 643,400 | 7,856 | |
Morgan Stanley | 1,895,024 | 50,749 | |
Northern Trust Corp. | 159,521 | 8,059 | |
optionsXpress Holdings, Inc. | 60,646 | 870 | |
TD Ameritrade Holding Corp. (a) | 140,800 | 2,501 | |
| 115,963 | ||
Commercial Banks - 5.9% | |||
Associated Banc-Corp. | 1,423,743 | 18,110 | |
CapitalSource, Inc. | 5,651,145 | 27,069 | |
Huntington Bancshares, Inc. | 2,546,200 | 12,196 | |
Mitsubishi UFJ Financial Group, Inc. | 5,701,300 | 29,338 | |
PNC Financial Services Group, Inc. | 2,235,658 | 123,923 | |
Regions Financial Corp. | 939,650 | 5,967 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
SVB Financial Group (a) | 375,890 | $ 16,310 | |
Wells Fargo & Co. | 6,835,441 | 194,330 | |
Wilmington Trust Corp., Delaware (c) | 1,904,737 | 24,990 | |
| 452,233 | ||
Consumer Finance - 0.4% | |||
Capital One Financial Corp. | 234,000 | 8,625 | |
Discover Financial Services | 951,232 | 13,013 | |
ORIX Corp. | 113,670 | 8,563 | |
| 30,201 | ||
Diversified Financial Services - 4.6% | |||
Bank of America Corp. | 8,210,707 | 124,639 | |
CME Group, Inc. | 70,600 | 20,249 | |
Deutsche Boerse AG | 120,642 | 7,898 | |
JPMorgan Chase & Co. | 3,546,450 | 138,099 | |
Moody's Corp. (c) | 620,146 | 17,110 | |
PICO Holdings, Inc. (a)(d) | 1,389,514 | 43,617 | |
| 351,612 | ||
Insurance - 3.0% | |||
ACE Ltd. | 202,700 | 9,987 | |
Assured Guaranty Ltd. | 466,790 | 10,577 | |
Berkshire Hathaway, Inc.: | |||
Class A (a) | 400 | 45,840 | |
Class B (a) | 645,409 | 49,329 | |
Conseco, Inc. (a) | 562,000 | 2,675 | |
Endurance Specialty Holdings Ltd. | 226,900 | 8,173 | |
Everest Re Group Ltd. | 141,300 | 12,115 | |
Genworth Financial, Inc. Class A (a) | 1,701,300 | 23,546 | |
Lincoln National Corp. | 837,000 | 20,573 | |
Maiden Holdings Ltd. | 692,542 | 4,702 | |
MBIA, Inc. (a)(c) | 1,608,900 | 7,932 | |
Platinum Underwriters Holdings Ltd. | 182,600 | 6,621 | |
Protective Life Corp. | 539,000 | 9,082 | |
Unum Group | 305,000 | 5,969 | |
Validus Holdings Ltd. | 268,300 | 7,110 | |
XL Capital Ltd. Class A | 245,355 | 4,115 | |
| 228,346 | ||
Real Estate Investment Trusts - 0.9% | |||
British Land Co. PLC | 56,163 | 390 | |
CBL & Associates Properties, Inc. | 633,200 | 6,332 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Developers Diversified Realty Corp. | 273,677 | $ 2,258 | |
Duke Realty LP | 298,000 | 3,373 | |
Education Realty Trust, Inc. | 423,700 | 2,237 | |
Extra Space Storage, Inc. | 172,100 | 1,953 | |
Franklin Street Properties Corp. | 80,500 | 1,011 | |
Kite Realty Group Trust | 79,948 | 303 | |
ProLogis Trust | 928,100 | 11,694 | |
Segro PLC | 724,800 | 3,600 | |
SL Green Realty Corp. | 322,200 | 14,657 | |
The Macerich Co. (c) | 139,133 | 4,292 | |
U-Store-It Trust | 568,200 | 3,932 | |
Vornado Realty Trust | 131,064 | 8,477 | |
| 64,509 | ||
Real Estate Management & Development - 1.2% | |||
Allgreen Properties Ltd. | 2,294,000 | 1,909 | |
Avatar Holdings, Inc. (a) | 48,140 | 815 | |
CB Richard Ellis Group, Inc. Class A (a) | 4,427,100 | 54,453 | |
Forest City Enterprises, Inc. Class A (a) | 173,100 | 1,958 | |
Iguatemi Empresa de Shopping Centers SA | 444,800 | 6,720 | |
Jones Lang LaSalle, Inc. | 283,200 | 16,145 | |
Kenedix, Inc. (a) | 11,537 | 3,575 | |
Unite Group PLC (a) | 1,835,539 | 8,408 | |
| 93,983 | ||
Thrifts & Mortgage Finance - 0.0% | |||
Ocwen Financial Corp. (a) | 250,434 | 2,294 | |
TOTAL FINANCIALS | 1,339,141 | ||
HEALTH CARE - 12.6% | |||
Biotechnology - 2.4% | |||
Alexion Pharmaceuticals, Inc. (a) | 126,500 | 5,866 | |
Amgen, Inc. (a) | 812,559 | 47,518 | |
Amylin Pharmaceuticals, Inc. (a) | 303,172 | 5,451 | |
Biogen Idec, Inc. (a) | 239,522 | 12,872 | |
Cephalon, Inc. (a) | 64,300 | 4,105 | |
China Biologic Products, Inc. (a)(c) | 321,800 | 3,189 | |
Clinical Data, Inc. (a)(c) | 513,709 | 7,896 | |
Dendreon Corp. (a)(c) | 404,500 | 11,205 | |
DUSA Pharmaceuticals, Inc. (a) | 163,847 | 229 | |
Genzyme Corp. (a) | 209,245 | 11,354 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
Human Genome Sciences, Inc. (a) | 555,400 | $ 14,701 | |
ImmunoGen, Inc. (a) | 47,800 | 334 | |
Incyte Corp. (a) | 341,800 | 3,650 | |
Maxygen, Inc. (a) | 401,767 | 2,246 | |
Micromet, Inc. (a) | 437,800 | 3,402 | |
OREXIGEN Therapeutics, Inc. (a) | 1,187,357 | 7,552 | |
Protalix BioTherapeutics, Inc. (a)(c) | 846,481 | 5,798 | |
Rigel Pharmaceuticals, Inc. (a) | 734,200 | 6,028 | |
Theravance, Inc. (a) | 1,182,461 | 12,972 | |
United Therapeutics Corp. (a) | 248,000 | 14,773 | |
| 181,141 | ||
Health Care Equipment & Supplies - 1.8% | |||
AGA Medical Holdings, Inc. | 237,300 | 3,401 | |
C. R. Bard, Inc. | 225,830 | 18,719 | |
Covidien PLC | 697,200 | 35,250 | |
ev3, Inc. (a) | 591,236 | 8,620 | |
Inverness Medical Innovations, Inc. (a) | 293,100 | 11,832 | |
Nobel Biocare Holding AG (Switzerland) | 229,864 | 6,761 | |
Orthofix International NV (a) | 323,288 | 9,741 | |
Orthovita, Inc. (a) | 1,134,800 | 4,131 | |
St. Jude Medical, Inc. (a) | 199,000 | 7,508 | |
Stryker Corp. | 274,700 | 14,262 | |
William Demant Holding AS (a) | 115,000 | 8,975 | |
Wright Medical Group, Inc. (a) | 439,808 | 7,864 | |
| 137,064 | ||
Health Care Providers & Services - 3.8% | |||
Aetna, Inc. | 666,800 | 19,984 | |
Brookdale Senior Living, Inc. (a) | 1,133,300 | 20,683 | |
CIGNA Corp. | 1,730,900 | 58,452 | |
Community Health Systems, Inc. (a) | 171,100 | 5,581 | |
DaVita, Inc. (a) | 140,690 | 8,408 | |
Emeritus Corp. (a) | 152,881 | 2,782 | |
Express Scripts, Inc. (a) | 390,400 | 32,739 | |
Henry Schein, Inc. (a) | 156,867 | 8,479 | |
McKesson Corp. | 188,200 | 11,070 | |
Medco Health Solutions, Inc. (a) | 451,000 | 27,727 | |
Psychiatric Solutions, Inc. (a) | 298,800 | 6,589 | |
Quest Diagnostics, Inc. | 297,647 | 16,570 | |
Triple-S Management Corp. (a) | 146,510 | 2,431 | |
UnitedHealth Group, Inc. | 1,283,100 | 42,342 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
Universal Health Services, Inc. Class B | 564,200 | $ 16,452 | |
VCA Antech, Inc. (a) | 325,800 | 8,272 | |
| 288,561 | ||
Life Sciences Tools & Services - 0.3% | |||
Life Technologies Corp. (a) | 155,100 | 7,710 | |
Thermo Fisher Scientific, Inc. (a) | 301,624 | 13,920 | |
| 21,630 | ||
Pharmaceuticals - 4.3% | |||
Abbott Laboratories | 188,809 | 9,996 | |
Allergan, Inc. | 207,965 | 11,958 | |
Ardea Biosciences, Inc. (a) | 602,700 | 8,824 | |
Cadence Pharmaceuticals, Inc. (a)(c) | 1,608,595 | 16,022 | |
Merck & Co., Inc. | 2,436,705 | 93,033 | |
Novartis AG sponsored ADR | 185,047 | 9,906 | |
Novo Nordisk AS Series B | 155,864 | 10,545 | |
Pfizer, Inc. | 6,057,825 | 113,039 | |
Pronova BioPharma ASA (a) | 1,990,900 | 5,858 | |
Sanofi-Aventis | 307,835 | 22,762 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 276,490 | 15,683 | |
ViroPharma, Inc. (a) | 848,400 | 8,382 | |
XenoPort, Inc. (a) | 305,634 | 5,648 | |
| 331,656 | ||
TOTAL HEALTH CARE | 960,052 | ||
INDUSTRIALS - 10.2% | |||
Aerospace & Defense - 2.1% | |||
Chemring Group PLC | 185,000 | 9,489 | |
European Aeronautic Defence and Space Co. EADS NV | 108,600 | 2,122 | |
GeoEye, Inc. (a) | 582,962 | 14,965 | |
Heico Corp. Class A | 354,003 | 11,944 | |
Honeywell International, Inc. | 328,600 | 12,697 | |
LMI Aerospace, Inc. (a) | 578,178 | 7,337 | |
Orbital Sciences Corp. (a) | 620,900 | 9,816 | |
Precision Castparts Corp. | 197,092 | 20,744 | |
Raytheon Co. | 322,686 | 16,918 | |
United Technologies Corp. | 824,739 | 55,653 | |
| 161,685 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Airlines - 0.4% | |||
Delta Air Lines, Inc. (a) | 1,693,375 | $ 20,710 | |
Southwest Airlines Co. | 732,000 | 8,294 | |
| 29,004 | ||
Building Products - 0.4% | |||
Masco Corp. | 1,332,600 | 18,070 | |
Owens Corning (a) | 623,625 | 16,046 | |
| 34,116 | ||
Commercial Services & Supplies - 0.8% | |||
Casella Waste Systems, Inc. Class A (a) | 376,513 | 1,638 | |
Clean Harbors, Inc. (a) | 188,790 | 10,810 | |
Consolidated Graphics, Inc. (a) | 97,564 | 3,293 | |
R.R. Donnelley & Sons Co. | 1,067,200 | 21,152 | |
Republic Services, Inc. | 584,495 | 15,659 | |
The Brink's Co. | 494,700 | 11,566 | |
| 64,118 | ||
Construction & Engineering - 0.5% | |||
Dycom Industries, Inc. (a) | 100,500 | 821 | |
Fluor Corp. | 193,106 | 8,755 | |
Great Lakes Dredge & Dock Corp. | 1,723,970 | 10,189 | |
Jacobs Engineering Group, Inc. (a) | 221,200 | 8,359 | |
MasTec, Inc. (a) | 177,000 | 2,175 | |
MYR Group, Inc. (a) | 281,857 | 4,470 | |
| 34,769 | ||
Electrical Equipment - 0.9% | |||
AMETEK, Inc. | 207,655 | 7,567 | |
Cooper Industries PLC Class A | 445,715 | 19,121 | |
First Solar, Inc. (a)(c) | 60,300 | 6,832 | |
Prysmian SpA | 466,800 | 8,472 | |
Renewable Energy Corp. AS (a)(c) | 1,545,903 | 8,965 | |
Schneider Electric SA | 97,225 | 10,030 | |
SunPower Corp. Class B (a) | 309,900 | 5,755 | |
| 66,742 | ||
Industrial Conglomerates - 0.8% | |||
Koninklijke Philips Electronics NV | 523,600 | 15,811 | |
Rheinmetall AG | 237,900 | 15,133 | |
Textron, Inc. | 1,472,724 | 28,762 | |
| 59,706 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Machinery - 2.1% | |||
Briggs & Stratton Corp. | 470,632 | $ 7,780 | |
Bucyrus International, Inc. Class A | 136,718 | 7,161 | |
Columbus McKinnon Corp. (NY Shares) (a) | 328,261 | 4,458 | |
Cummins, Inc. | 575,700 | 25,999 | |
Danaher Corp. | 199,700 | 14,249 | |
Ingersoll-Rand Co. Ltd. | 515,724 | 16,740 | |
JTEKT Corp. | 667,500 | 7,624 | |
Navistar International Corp. (a) | 821,700 | 30,395 | |
The Stanley Works | 239,271 | 12,263 | |
Timken Co. | 442,804 | 9,923 | |
Trinity Industries, Inc. | 458,500 | 7,171 | |
Vallourec SA | 76,600 | 13,175 | |
| 156,938 | ||
Professional Services - 0.3% | |||
Equifax, Inc. | 201,900 | 6,461 | |
Monster Worldwide, Inc. (a) | 565,700 | 8,819 | |
Randstad Holdings NV (a) | 12,723 | 611 | |
Robert Half International, Inc. | 402,300 | 10,830 | |
| 26,721 | ||
Road & Rail - 1.8% | |||
Arkansas Best Corp. | 366,400 | 8,259 | |
Avis Budget Group, Inc. (a) | 1,236,466 | 13,379 | |
Con-way, Inc. | 217,700 | 6,231 | |
CSX Corp. | 732,900 | 31,412 | |
Norfolk Southern Corp. | 286,100 | 13,464 | |
Saia, Inc. (a) | 533,135 | 6,398 | |
Saia, Inc. (a)(g) | 233,940 | 2,807 | |
Union Pacific Corp. | 746,900 | 45,187 | |
Universal Truckload Services, Inc. (d) | 857,948 | 14,448 | |
| 141,585 | ||
Trading Companies & Distributors - 0.1% | |||
Kaman Corp. | 201,100 | 5,005 | |
TOTAL INDUSTRIALS | 780,389 | ||
INFORMATION TECHNOLOGY - 16.7% | |||
Communications Equipment - 2.8% | |||
Adtran, Inc. | 501,894 | 10,640 | |
Aviat Networks, Inc. (a) | 460,443 | 3,311 | |
Cisco Systems, Inc. (a) | 4,683,100 | 105,229 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Communications Equipment - continued | |||
Comverse Technology, Inc. (a) | 1,435,800 | $ 13,654 | |
Infinera Corp. (a) | 1,006,668 | 6,896 | |
Juniper Networks, Inc. (a) | 1,513,200 | 37,573 | |
Motorola, Inc. | 3,018,336 | 18,563 | |
QUALCOMM, Inc. | 483,100 | 18,933 | |
| 214,799 | ||
Computers & Peripherals - 1.7% | |||
3PAR, Inc. (a) | 349,959 | 3,384 | |
Apple, Inc. (a) | 22,935 | 4,406 | |
Hewlett-Packard Co. | 1,893,500 | 89,127 | |
NCR Corp. (a) | 583,330 | 6,982 | |
Seagate Technology | 1,473,951 | 24,659 | |
| 128,558 | ||
Electronic Equipment & Components - 2.2% | |||
Agilent Technologies, Inc. | 1,207,061 | 33,834 | |
Amphenol Corp. Class A | 383,419 | 15,275 | |
Arrow Electronics, Inc. (a) | 591,800 | 15,547 | |
Avnet, Inc. (a) | 837,329 | 22,139 | |
Bell Microproducts, Inc. (a)(c)(d) | 2,045,259 | 9,245 | |
Corning, Inc. | 1,573,100 | 28,442 | |
Ingram Micro, Inc. Class A (a) | 481,054 | 8,130 | |
Itron, Inc. (a) | 173,753 | 10,693 | |
Keyence Corp. | 34,600 | 7,984 | |
Omron Corp. | 201,100 | 4,008 | |
Tyco Electronics Ltd. | 530,246 | 13,193 | |
| 168,490 | ||
Internet Software & Services - 1.7% | |||
Akamai Technologies, Inc. (a) | 338,200 | 8,354 | |
Google, Inc. Class A (a) | 167,010 | 88,418 | |
NetEase.com, Inc. sponsored ADR (a) | 313,000 | 10,266 | |
Open Text Corp. (a) | 141,400 | 5,571 | |
VeriSign, Inc. (a) | 781,536 | 17,905 | |
| 130,514 | ||
IT Services - 1.1% | |||
Alliance Data Systems Corp. (a) | 330,852 | 19,672 | |
Atos Origin SA (a) | 189,021 | 8,791 | |
China Information Security Technology, Inc. (a)(c) | 494,700 | 2,409 | |
Fidelity National Information Services, Inc. | 1,078,091 | 25,400 | |
Fiserv, Inc. (a) | 126,783 | 5,710 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
IT Services - continued | |||
Hewitt Associates, Inc. Class A (a) | 346,250 | $ 13,670 | |
Visa, Inc. Class A | 73,700 | 6,046 | |
| 81,698 | ||
Office Electronics - 0.1% | |||
Xerox Corp. | 1,246,700 | 10,871 | |
Semiconductors & Semiconductor Equipment - 4.8% | |||
Analog Devices, Inc. | 548,300 | 14,782 | |
ASM International NV (Netherlands) (a)(c) | 361,785 | 8,326 | |
Atmel Corp. (a) | 11,278,561 | 52,333 | |
Avago Technologies Ltd. | 1,749,400 | 30,405 | |
Cymer, Inc. (a) | 362,100 | 11,359 | |
Fairchild Semiconductor International, Inc. (a) | 2,503,938 | 22,485 | |
Himax Technologies, Inc. sponsored ADR | 2,332,136 | 6,926 | |
International Rectifier Corp. (a) | 181,102 | 3,267 | |
Intersil Corp. Class A | 371,641 | 5,006 | |
Kulicke & Soffa Industries, Inc. (a) | 1,693,800 | 7,808 | |
Lam Research Corp. (a) | 2,013,893 | 66,479 | |
LTX-Credence Corp. (a)(d) | 7,536,843 | 18,917 | |
Maxim Integrated Products, Inc. | 832,300 | 14,549 | |
MEMC Electronic Materials, Inc. (a) | 441,600 | 5,555 | |
Micron Technology, Inc. (a) | 2,784,000 | 24,276 | |
National Semiconductor Corp. | 675,877 | 8,962 | |
NVIDIA Corp. (a) | 679,712 | 10,461 | |
ON Semiconductor Corp. (a) | 3,074,454 | 22,167 | |
Standard Microsystems Corp. (a) | 228,900 | 4,567 | |
Teradyne, Inc. (a) | 784,300 | 7,325 | |
Varian Semiconductor Equipment Associates, Inc. (a) | 411,685 | 12,075 | |
Verigy Ltd. (a) | 655,600 | 7,107 | |
| 365,137 | ||
Software - 2.3% | |||
Adobe Systems, Inc. (a) | 414,390 | 13,385 | |
BMC Software, Inc. (a) | 266,400 | 10,294 | |
Citrix Systems, Inc. (a) | 323,390 | 13,437 | |
Giant Interactive Group, Inc. ADR (c) | 1,177,357 | 8,618 | |
ICSA (India) Ltd. | 804,419 | 2,807 | |
Informatica Corp. (a) | 442,000 | 10,471 | |
Microsoft Corp. | 2,770,515 | 78,073 | |
Nuance Communications, Inc. (a) | 525,318 | 7,890 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Software - continued | |||
Oracle Corp. | 1,242,600 | $ 28,654 | |
Ultimate Software Group, Inc. (a) | 44,245 | 1,323 | |
| 174,952 | ||
TOTAL INFORMATION TECHNOLOGY | 1,275,019 | ||
MATERIALS - 5.9% | |||
Chemicals - 2.9% | |||
Airgas, Inc. | 112,200 | 4,742 | |
Albemarle Corp. | 311,600 | 11,130 | |
Celanese Corp. Class A | 858,259 | 24,975 | |
Clariant AG (Reg.) (a) | 723,920 | 7,945 | |
Dow Chemical Co. | 1,233,260 | 33,409 | |
Ferro Corp. | 1,332,700 | 10,342 | |
Huabao International Holdings Ltd. | 6,355,000 | 6,466 | |
Israel Chemicals Ltd. | 647,400 | 8,571 | |
Monsanto Co. | 188,800 | 14,326 | |
Solutia, Inc. (a) | 1,731,400 | 23,807 | |
Spartech Corp. | 1,508,151 | 15,217 | |
STR Holdings, Inc. | 217,194 | 3,623 | |
Terra Industries, Inc. | 313,100 | 9,894 | |
The Mosaic Co. | 267,800 | 14,330 | |
W.R. Grace & Co. (a) | 1,493,725 | 35,670 | |
| 224,447 | ||
Construction Materials - 0.3% | |||
Eagle Materials, Inc. | 68,311 | 1,558 | |
HeidelbergCement AG | 328,244 | 19,780 | |
| 21,338 | ||
Containers & Packaging - 0.3% | |||
Owens-Illinois, Inc. (a) | 631,176 | 17,181 | |
Temple-Inland, Inc. | 351,000 | 6,097 | |
| 23,278 | ||
Metals & Mining - 2.2% | |||
Agnico-Eagle Mines Ltd. (Canada) | 115,400 | 5,833 | |
Canplats Resources Corp. (a) | 60,400 | 268 | |
Commercial Metals Co. | 928,300 | 12,755 | |
Eldorado Gold Corp. (a) | 3,182,978 | 37,804 | |
European Goldfields Ltd. (a) | 88,500 | 449 | |
First Quantum Minerals Ltd. | 24,100 | 1,748 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Metals & Mining - continued | |||
Grande Cache Coal Corp. (a) | 835,400 | $ 4,078 | |
Gulf Resources, Inc. (a) | 582,180 | 5,519 | |
Gulf Resources, Inc. (a)(g) | 1,894,460 | 16,164 | |
Ivanhoe Mines Ltd. (a) | 1,847,200 | 25,878 | |
Lihir Gold Ltd. | 4,086,470 | 10,009 | |
Mitsubishi Materials Corp. (a) | 1,689,000 | 4,397 | |
Newcrest Mining Ltd. | 451,358 | 12,584 | |
Nucor Corp. | 58,723 | 2,396 | |
Quadra Mining Ltd. (a) | 80,300 | 1,075 | |
Randgold Resources Ltd. sponsored ADR | 129,500 | 8,926 | |
Rio Tinto PLC (Reg.) | 182,200 | 8,885 | |
Seabridge Gold, Inc. (a) | 48,300 | 1,163 | |
Silver Wheaton Corp. (a) | 60,300 | 832 | |
Steel Dynamics, Inc. | 217,400 | 3,300 | |
Timminco Ltd. (a)(c) | 1,135,575 | 1,243 | |
| 165,306 | ||
Paper & Forest Products - 0.2% | |||
Weyerhaeuser Co. | 499,600 | 19,934 | |
TOTAL MATERIALS | 454,303 | ||
TELECOMMUNICATION SERVICES - 1.4% | |||
Diversified Telecommunication Services - 0.8% | |||
Iliad Group SA | 125,332 | 13,891 | |
Qwest Communications International, Inc. | 2,647,771 | 11,147 | |
Verizon Communications, Inc. | 1,174,861 | 34,564 | |
| 59,602 | ||
Wireless Telecommunication Services - 0.6% | |||
Leap Wireless International, Inc. (a)(c) | 885,058 | 11,674 | |
Sprint Nextel Corp. (a) | 9,404,815 | 30,848 | |
Vivo Participacoes SA sponsored ADR | 217,200 | 6,079 | |
| 48,601 | ||
TOTAL TELECOMMUNICATION SERVICES | 108,203 | ||
UTILITIES - 2.3% | |||
Electric Utilities - 1.0% | |||
Allegheny Energy, Inc. | 854,700 | 17,906 | |
Centrais Eletricas Brasileiras SA (Electrobras) (PN-B) sponsored ADR (c) | 261,500 | 4,767 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - continued | |||
Electric Utilities - continued | |||
Companhia Energetica de Minas Gerais (CEMIG) (PN) sponsored ADR (non-vtg.) (c) | 498,500 | $ 8,310 | |
CPFL Energia SA sponsored ADR (c) | 64,400 | 3,805 | |
Entergy Corp. | 217,912 | 16,629 | |
FirstEnergy Corp. | 555,000 | 24,209 | |
| 75,626 | ||
Gas Utilities - 0.2% | |||
EQT Corp. | 104,600 | 4,604 | |
Xinao Gas Holdings Ltd. | 3,604,000 | 8,569 | |
| 13,173 | ||
Independent Power Producers & Energy Traders - 0.7% | |||
AES Corp. | 1,057,600 | 13,357 | |
Constellation Energy Group, Inc. | 144,900 | 4,677 | |
NRG Energy, Inc. (a) | 1,255,353 | 30,267 | |
RRI Energy, Inc. (a) | 523,050 | 2,589 | |
| 50,890 | ||
Multi-Utilities - 0.4% | |||
Alliant Energy Corp. | 200,900 | 6,268 | |
CMS Energy Corp. | 1,840,984 | 27,928 | |
Sempra Energy | 3,465 | 176 | |
| 34,372 | ||
TOTAL UTILITIES | 174,061 | ||
TOTAL COMMON STOCKS (Cost $7,087,743) | 7,424,468 | ||
Convertible Preferred Stocks - 1.0% | |||
|
|
|
|
ENERGY - 0.2% | |||
Oil, Gas & Consumable Fuels - 0.2% | |||
SandRidge Energy, Inc. 8.50% (a) | 80,500 | 10,182 | |
FINANCIALS - 0.5% | |||
Diversified Financial Services - 0.5% | |||
Bank of America Corp. | 1,529,700 | 23,098 | |
Citigroup, Inc. 7.50% | 157,200 | 16,434 | |
| 39,532 | ||
Convertible Preferred Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - 0.3% | |||
Metals & Mining - 0.3% | |||
Freeport-McMoRan Copper & Gold, Inc. 6.75% | 227,900 | $ 22,434 | |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $67,154) | 72,148 | ||
Investment Companies - 0.4% | |||
|
|
|
|
Ares Capital Corp. | 2,665,050 | 32,780 |
Corporate Bonds - 0.9% | ||||
| Principal Amount (000s) |
| ||
Convertible Bonds - 0.6% | ||||
FINANCIALS - 0.3% | ||||
Real Estate Management & Development - 0.1% | ||||
Forest City Enterprises, Inc. 5% 10/15/16 (e) | $ 6,170 | 6,575 | ||
Thrifts & Mortgage Finance - 0.2% | ||||
MGIC Investment Corp. 9% 4/1/63 (a)(e) | 15,533 | 10,679 | ||
TOTAL FINANCIALS | 17,254 | |||
HEALTH CARE - 0.2% | ||||
Biotechnology - 0.1% | ||||
Incyte Corp. 4.75% 10/1/15 (e) | 5,630 | 8,242 | ||
Pharmaceuticals - 0.1% | ||||
Endo Pharmaceuticals Holdings, Inc. 1.75% 4/15/15 (e) | 8,010 | 7,371 | ||
TOTAL HEALTH CARE | 15,613 | |||
INDUSTRIALS - 0.0% | ||||
Trading Companies & Distributors - 0.0% | ||||
United Rentals, Inc. 4% 11/15/15 | 1,820 | 1,764 | ||
INFORMATION TECHNOLOGY - 0.1% | ||||
Semiconductors & Semiconductor Equipment - 0.1% | ||||
Amkor Technology, Inc. 6% 4/15/14 (e) | 4,010 | 8,327 | ||
TOTAL CONVERTIBLE BONDS | 42,958 | |||
Corporate Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Nonconvertible Bonds - 0.3% | ||||
ENERGY - 0.1% | ||||
Oil, Gas & Consumable Fuels - 0.1% | ||||
OPTI Canada, Inc.: | ||||
7.875% 12/15/14 | $ 5,385 | $ 4,671 | ||
8.25% 12/15/14 | 5,330 | 4,704 | ||
| 9,375 | |||
INFORMATION TECHNOLOGY - 0.2% | ||||
Semiconductors & Semiconductor Equipment - 0.2% | ||||
Freescale Semiconductor, Inc. 10.125% 12/15/16 | 19,510 | 15,413 | ||
TOTAL NONCONVERTIBLE BONDS | 24,788 | |||
TOTAL CORPORATE BONDS (Cost $54,005) | 67,746 |
Money Market Funds - 1.9% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.17% (f) | 21,673,539 | 21,674 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(f) | 126,822,619 | 126,823 | |
TOTAL MONEY MARKET FUNDS (Cost $148,497) | 148,497 | ||
TOTAL INVESTMENT PORTFOLIO - 101.4% (Cost $7,391,037) | 7,745,639 | ||
NET OTHER ASSETS - (1.4)% | (107,658) | ||
NET ASSETS - 100% | $ 7,637,981 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated company |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $45,998,000 or 0.6% of net assets. |
(f) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $18,971,000 or 0.2% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Gulf Resources, Inc. | 12/11/09 | $ 16,103 |
Saia, Inc. | 12/22/09 | $ 2,690 |
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 | $ 39 |
Fidelity Securities Lending Cash Central Fund | 338 |
Total | $ 377 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
Bell Microproducts, Inc. | $ 3,211 | $ - | $ - | $ - | $ 9,245 |
DUSA Pharmaceuticals, Inc. | 1,459 | - | 1,614 | - | - |
Great Lakes Dredge & Dock Corp. | 17,803 | - | 8,846 | 69 | - |
LTX-Credence Corp. | 6,783 | - | - | - | 18,917 |
PICO Holdings, Inc. | 48,762 | - | 7,105 | - | 43,617 |
Tween Brands, Inc. | 14,547 | - | 17,581 | - | - |
Universal Truckload Services, Inc. | 18,364 | - | 4,947 | - | 14,448 |
Total | $ 110,929 | $ - | $ 40,093 | $ 69 | $ 86,227 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 752,828 | $ 719,608 | $ 33,220 | $ - |
Consumer Staples | 732,032 | 588,409 | 143,623 | - |
Energy | 858,622 | 836,371 | 22,251 | - |
Financials | 1,378,673 | 1,322,332 | 56,341 | - |
Health Care | 960,052 | 905,151 | 54,901 | - |
Industrials | 780,389 | 696,581 | 83,808 | - |
Information Technology | 1,275,019 | 1,257,902 | 17,117 | - |
Materials | 476,737 | 401,529 | 75,208 | - |
Telecommunication Services | 108,203 | 94,312 | 13,891 | - |
Utilities | 174,061 | 174,061 | - | - |
Investment Companies | 32,780 | 32,780 | - | - |
Corporate Bonds | 67,746 | - | 67,746 | - |
Money Market Funds | 148,497 | 148,497 | - | - |
Total Investments in Securities: | $ 7,745,639 | $ 7,177,533 | $ 568,106 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 84.4% |
Canada | 2.2% |
Switzerland | 1.7% |
Japan | 1.2% |
Cayman Islands | 1.1% |
Bermuda | 1.1% |
Norway | 1.0% |
Ireland | 1.0% |
Others (individually less than 1%) | 6.3% |
| 100.0% |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $698,365,000 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $988,540,000 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $119,142) - See accompanying schedule: Unaffiliated issuers (cost $7,151,629) | $ 7,510,915 |
|
Fidelity Central Funds (cost $148,497) | 148,497 |
|
Other affiliated issuers (cost $90,911) | 86,227 |
|
Total Investments (cost $7,391,037) |
| $ 7,745,639 |
Cash | 15 | |
Receivable for investments sold | 192,383 | |
Receivable for fund shares sold | 26,355 | |
Dividends receivable | 3,835 | |
Interest receivable | 650 | |
Distributions receivable from Fidelity Central Funds | 60 | |
Prepaid expenses | 28 | |
Other receivables | 541 | |
Total assets | 7,969,506 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 188,173 | |
Payable for fund shares redeemed | 9,189 | |
Accrued management fee | 4,312 | |
Other affiliated payables | 1,757 | |
Other payables and accrued expenses | 1,271 | |
Collateral on securities loaned, at value | 126,823 | |
Total liabilities | 331,525 | |
|
|
|
Net Assets | $ 7,637,981 | |
Net Assets consist of: |
| |
Paid in capital | $ 8,547,393 | |
Distributions in excess of net investment income | (553) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (1,262,506) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 353,647 | |
Net Assets | $ 7,637,981 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | January 31, 2010 (Unaudited) | |
|
|
|
Dividend Growth: | $ 22.79 | |
|
|
|
Class K: | $ 22.78 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended January 31, 2010 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends (including $69 earned from other affiliated issuers) |
| $ 45,702 |
Interest |
| 2,648 |
Income from Fidelity Central Funds |
| 377 |
Total income |
| 48,727 |
|
|
|
Expenses | ||
Management fee | $ 21,374 | |
Performance adjustment | 2,187 | |
Transfer agent fees | 9,690 | |
Accounting and security lending fees | 689 | |
Custodian fees and expenses | 142 | |
Independent trustees' compensation | 24 | |
Registration fees | 105 | |
Audit | 41 | |
Legal | 36 | |
Miscellaneous | 66 | |
Total expenses before reductions | 34,354 | |
Expense reductions | (468) | 33,886 |
Net investment income (loss) | 14,841 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 552,206 | |
Other affiliated issuers | (4,881) |
|
Foreign currency transactions | (229) | |
Capital gain distributions from Fidelity Central Funds | 5 |
|
Total net realized gain (loss) |
| 547,101 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 340,401 | |
Assets and liabilities in foreign currencies | 13 | |
Total change in net unrealized appreciation (depreciation) |
| 340,414 |
Net gain (loss) | 887,515 | |
Net increase (decrease) in net assets resulting from operations | $ 902,356 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended January 31, 2010 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 14,841 | $ 82,873 |
Net realized gain (loss) | 547,101 | (1,751,666) |
Change in net unrealized appreciation (depreciation) | 340,414 | 144,851 |
Net increase (decrease) in net assets resulting | 902,356 | (1,523,942) |
Distributions to shareholders from net investment income | (39,369) | (132,865) |
Distributions to shareholders from net realized gain | (16,428) | (361,284) |
Total distributions | (55,797) | (494,149) |
Share transactions - net increase (decrease) | (13,632) | (678,997) |
Total increase (decrease) in net assets | 832,927 | (2,697,088) |
|
|
|
Net Assets | ||
Beginning of period | 6,805,054 | 9,502,142 |
End of period (including distributions in excess of net investment income of $553 and undistributed net investment income of $23,975, respectively) | $ 7,637,981 | $ 6,805,054 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Dividend Growth
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 20.25 | $ 25.40 | $ 32.73 | $ 29.50 | $ 28.85 | $ 26.58 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .04 | .24 | .43 | .52 G | .35 | .45 H |
Net realized and unrealized gain (loss) | 2.67 | (4.01) | (5.08) | 3.98 | .99 | 2.21 |
Total from investment operations | 2.71 | (3.77) | (4.65) | 4.50 | 1.34 | 2.66 |
Distributions from net investment income | (.12) | (.37) | (.45) | (.45) | (.31) | (.39) |
Distributions from net realized gain | (.05) | (1.01) | (2.23) | (.82) | (.38) | - |
Total distributions | (.17) | (1.38) J | (2.68) | (1.27) | (.69) | (.39) |
Net asset value, end of period | $ 22.79 | $ 20.25 | $ 25.40 | $ 32.73 | $ 29.50 | $ 28.85 |
Total Return B, C | 13.37% | (15.33)% | (15.45)% | 15.62% | 4.73% | 10.08% |
Ratios to Average Net Assets E, I |
|
|
|
|
| |
Expenses before reductions | .91% A | .62% | .64% | .61% | .60% | .68% |
Expenses net of fee waivers, if any | .91% A | .62% | .64% | .61% | .60% | .68% |
Expenses net of all reductions | .89% A | .62% | .63% | .60% | .59% | .66% |
Net investment income (loss) | .38% A | 1.34% | 1.47% | 1.62% G | 1.21% | 1.64% H |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (in millions) | $ 7,367 | $ 6,603 | $ 9,502 | $ 16,265 | $ 15,523 | $ 17,399 |
Portfolio turnover rate F | 85% A | 177% | 52% | 36% | 30% | 26% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.40%.
H Investment income per share reflects a special dividend which amounted to $.16 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.06%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Total distributions of $1.38 per share is comprised of distributions from net investment income of $.374 and distributions from net realized gain of $1.005 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended | Years ended July 31, | |
(Unaudited) | 2009 | 2008 G | |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 20.26 | $ 25.41 | $ 27.72 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | .07 | .26 | .10 |
Net realized and unrealized gain (loss) | 2.66 | (4.00) | (2.41) |
Total from investment operations | 2.73 | (3.74) | (2.31) |
Distributions from net investment income | (.16) | (.41) | - |
Distributions from net realized gain | (.05) | (1.01) | - |
Total distributions | (.21) | (1.41) I | - |
Net asset value, end of period | $ 22.78 | $ 20.26 | $ 25.41 |
Total Return B, C | 13.48% | (15.16)% | (8.33)% |
Ratios to Average Net Assets E, H |
|
|
|
Expenses before reductions | .70% A | .40% | .47% A |
Expenses net of fee waivers, if any | .70% A | .40% | .47% A |
Expenses net of all reductions | .69% A | .39% | .47% A |
Net investment income (loss) | .59% A | 1.57% | 1.66% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 271,209 | $ 201,625 | $ 92 |
Portfolio turnover rate F | 85% A | 177% | 52% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
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 Total distributions of $1.41 per share is comprised of distributions from net investment income of $.407 and distributions from net realized gain of $1.005 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Dividend Growth Fund (the Fund) is a fund of Fidelity Securities Fund (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 Dividend Growth and Class K 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 commencement of Class K, the Fund began offering conversion privileges between Dividend Growth and Class K to eligible shareholders of Dividend Growth. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as level 2 in the hierarchy.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, deferred trustee compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,000,739 |
|
Gross unrealized depreciation | (719,166) |
|
Net unrealized appreciation (depreciation) | $ 281,573 |
|
|
|
|
Tax cost | $ 7,464,066 |
|
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $3,148,692 and $3,196,145, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
of the Fund, Dividend Growth, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .62% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Dividend Growth. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Dividend Growth | $ 9,618 | .26 |
Class K | 72 | .06 |
| $ 9,690 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $26 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. The interest expense amounted to four hundred fifty-five dollars under the interfund lending program. At period end, there were no interfund loans outstanding.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Interfund Lending Program - continued
The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily | Weighted Average |
Borrower | $ 43,369 | .38% |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $15 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $338.
Semiannual Report
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $468 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Dividend Growth | $ 37,603 | $ 131,611 |
Class K | 1,766 | 1,254 |
Total | $ 39,369 | $ 132,865 |
From net realized gain |
|
|
Dividend Growth | $ 15,884 | $ 361,247 |
Class K | 544 | 37 |
Total | $ 16,428 | $ 361,284 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Dividend Growth |
|
|
|
|
Shares sold | 46,542 | 75,287 | $ 1,066,621 | $ 1,282,313 |
Conversion to Class K | (734) | (9,623) | (15,619) | (178,188) |
Reinvestment of distributions | 2,281 | 21,264 | 51,426 | 478,613 |
Shares redeemed | (50,947) | (134,869) | (1,159,555) | (2,446,584) |
Net increase (decrease) | (2,858) | (47,941) | $ (57,127) | $ (863,846) |
Class K |
|
|
|
|
Shares sold | 2,234 | 2,088 | $ 50,856 | $ 35,139 |
Conversion from Dividend Growth | 733 | 9,623 | 15,619 | 178,188 |
Reinvestment of distributions | 102 | 86 | 2,310 | 1,291 |
Shares redeemed | (1,116) | (1,850) | (25,290) | (29,769) |
Net increase (decrease) | 1,953 | 9,947 | $ 43,495 | $ 184,849 |
A Conversion transactions for Class K and Dividend Growth are for the period August 1, 2009 to August 31, 2009.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.
By Phone
Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Workplace
Investing
1-800-835-5092
By PC
Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.401k.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research
(U.K.) Inc.
FIL Investment Advisors
FIL Investments (Japan) Limited
FIL Investment Advisors (U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.,
New York, NY
DGF-K-USAN-0310 1.863067.101
Fidelity®
Growth & Income
Portfolio
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.fidelity.advisor.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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 (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.
Semiannual Report
Shareholder Expense Example - continued
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.
|
|
|
| Expenses Paid |
Growth & Income | .76% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,082.30 | $ 3.99 |
Hypothetical A |
| $ 1,000.00 | $ 1,021.37 | $ 3.87 |
Class K | .55% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,082.80 | $ 2.89 |
Hypothetical A |
| $ 1,000.00 | $ 1,022.43 | $ 2.80 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Microsoft Corp. | 2.4 | 2.8 |
Wells Fargo & Co. | 2.3 | 1.3 |
Apple, Inc. | 2.2 | 1.7 |
Exxon Mobil Corp. | 2.2 | 3.2 |
Cisco Systems, Inc. | 2.1 | 1.8 |
Pfizer, Inc. | 2.0 | 1.5 |
JPMorgan Chase & Co. | 2.0 | 2.2 |
Hewlett-Packard Co. | 1.9 | 1.7 |
Google, Inc. Class A | 1.8 | 1.3 |
United Technologies Corp. | 1.5 | 1.0 |
| 20.4 | |
Top Five Market Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Information Technology | 22.3 | 22.8 |
Financials | 18.3 | 15.9 |
Health Care | 13.7 | 15.1 |
Consumer Discretionary | 12.7 | 12.0 |
Energy | 10.8 | 10.5 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks 99.2% |
| ![]() | Stocks 98.5% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 9.1% |
| ** Foreign investments | 10.6% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.2% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.7% | |||
Auto Components - 1.1% | |||
ArvinMeritor, Inc. (a) | 570,000 | $ 5,523 | |
BorgWarner, Inc. | 270,000 | 9,474 | |
Fuel Systems Solutions, Inc. (a) | 65,000 | 2,317 | |
Johnson Controls, Inc. | 1,050,000 | 29,222 | |
Tenneco, Inc. (a) | 355,300 | 6,282 | |
The Goodyear Tire & Rubber Co. (a) | 1,345,677 | 17,951 | |
| 70,769 | ||
Automobiles - 0.8% | |||
Ford Motor Co. (a) | 1,850,000 | 20,054 | |
Harley-Davidson, Inc. | 580,000 | 13,189 | |
Toyota Motor Corp. sponsored ADR | 205,000 | 15,785 | |
| 49,028 | ||
Distributors - 0.1% | |||
Li & Fung Ltd. | 1,500,000 | 6,878 | |
Hotels, Restaurants & Leisure - 1.0% | |||
Buffalo Wild Wings, Inc. (a) | 348,489 | 16,313 | |
Carnival Corp. unit | 340,000 | 11,332 | |
Darden Restaurants, Inc. | 255,000 | 9,425 | |
Marriott International, Inc. Class A (c) | 180,618 | 4,738 | |
Sonic Corp. (a) | 397,600 | 3,352 | |
Starbucks Corp. (a) | 900,000 | 19,611 | |
| 64,771 | ||
Household Durables - 2.2% | |||
Ethan Allen Interiors, Inc. | 24,900 | 361 | |
KB Home (c) | 2,350,000 | 35,908 | |
Newell Rubbermaid, Inc. | 535,000 | 7,260 | |
Pulte Homes, Inc. | 2,252,370 | 23,695 | |
Ryland Group, Inc. | 1,480,000 | 32,945 | |
Toll Brothers, Inc. (a) | 510,292 | 9,425 | |
Whirlpool Corp. | 338,100 | 25,418 | |
| 135,012 | ||
Internet & Catalog Retail - 0.3% | |||
Amazon.com, Inc. (a) | 123,000 | 15,425 | |
Media - 2.5% | |||
Comcast Corp. Class A | 900,000 | 14,247 | |
DIRECTV (a) | 550,000 | 16,693 | |
Lamar Advertising Co. Class A (a)(c) | 295,000 | 8,437 | |
McGraw-Hill Companies, Inc. | 880,000 | 31,196 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Media - continued | |||
The Walt Disney Co. | 1,875,000 | $ 55,406 | |
Time Warner, Inc. | 1,095,233 | 30,064 | |
| 156,043 | ||
Multiline Retail - 1.4% | |||
Kohl's Corp. (a) | 395,000 | 19,896 | |
Target Corp. | 1,291,000 | 66,190 | |
| 86,086 | ||
Specialty Retail - 3.0% | |||
American Eagle Outfitters, Inc. | 385,000 | 6,118 | |
Best Buy Co., Inc. | 335,000 | 12,278 | |
Cabela's, Inc. Class A (a)(c) | 220,000 | 3,546 | |
Gymboree Corp. (a) | 115,000 | 4,486 | |
Limited Brands, Inc. | 350,000 | 6,657 | |
Lowe's Companies, Inc. | 2,550,000 | 55,208 | |
PetSmart, Inc. | 40,000 | 1,030 | |
RadioShack Corp. | 640,000 | 12,493 | |
Ross Stores, Inc. | 90,000 | 4,134 | |
Sherwin-Williams Co. | 15,000 | 950 | |
Staples, Inc. | 2,440,000 | 57,242 | |
TJX Companies, Inc. | 570,000 | 21,666 | |
| 185,808 | ||
Textiles, Apparel & Luxury Goods - 0.3% | |||
Polo Ralph Lauren Corp. Class A | 200,000 | 16,400 | |
TOTAL CONSUMER DISCRETIONARY | 786,220 | ||
CONSUMER STAPLES - 7.1% | |||
Beverages - 1.5% | |||
Dr Pepper Snapple Group, Inc. | 250,000 | 6,915 | |
The Coca-Cola Co. | 1,545,000 | 83,816 | |
| 90,731 | ||
Food & Staples Retailing - 1.6% | |||
CVS Caremark Corp. | 672,900 | 21,782 | |
Wal-Mart Stores, Inc. | 1,395,000 | 74,535 | |
Walgreen Co. | 80,000 | 2,884 | |
| 99,201 | ||
Food Products - 1.0% | |||
Bunge Ltd. | 200,000 | 11,758 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Food Products - continued | |||
Corn Products International, Inc. | 135,000 | $ 3,837 | |
Nestle SA (Reg.) | 967,000 | 45,835 | |
| 61,430 | ||
Household Products - 1.8% | |||
Colgate-Palmolive Co. | 390,000 | 31,212 | |
Procter & Gamble Co. | 1,315,000 | 80,938 | |
| 112,150 | ||
Tobacco - 1.2% | |||
Philip Morris International, Inc. | 1,625,000 | 73,954 | |
TOTAL CONSUMER STAPLES | 437,466 | ||
ENERGY - 10.8% | |||
Energy Equipment & Services - 4.1% | |||
Cameron International Corp. (a) | 560,000 | 21,090 | |
Ensco International Ltd. ADR | 150,000 | 5,855 | |
Halliburton Co. | 2,129,400 | 62,200 | |
Helmerich & Payne, Inc. | 295,000 | 12,340 | |
Nabors Industries Ltd. (a) | 880,000 | 19,624 | |
Schlumberger Ltd. | 1,389,500 | 88,178 | |
Smith International, Inc. | 935,000 | 28,349 | |
Weatherford International Ltd. (a) | 1,151,800 | 18,060 | |
| 255,696 | ||
Oil, Gas & Consumable Fuels - 6.7% | |||
Anadarko Petroleum Corp. | 440,000 | 28,063 | |
Apache Corp. | 285,000 | 28,149 | |
Arch Coal, Inc. | 478,100 | 10,074 | |
Chesapeake Energy Corp. | 135,000 | 3,345 | |
EOG Resources, Inc. | 125,000 | 11,303 | |
Exxon Mobil Corp. | 2,124,300 | 136,869 | |
Occidental Petroleum Corp. | 1,062,900 | 83,268 | |
Peabody Energy Corp. | 410,000 | 17,269 | |
Petrohawk Energy Corp. (a) | 470,000 | 10,495 | |
Plains Exploration & Production Co. (a) | 689,300 | 22,988 | |
Range Resources Corp. | 350,000 | 16,100 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Southwestern Energy Co. (a) | 715,000 | $ 30,659 | |
Ultra Petroleum Corp. (a) | 315,000 | 14,471 | |
| 413,053 | ||
TOTAL ENERGY | 668,749 | ||
FINANCIALS - 18.1% | |||
Capital Markets - 4.8% | |||
Ameriprise Financial, Inc. | 800,000 | 30,592 | |
AP Alternative Assets, L.P. Restricted Depositary Units (a)(d) | 4,449,200 | 32,034 | |
Bank of New York Mellon Corp. | 630,000 | 18,327 | |
Charles Schwab Corp. | 400,000 | 7,316 | |
Goldman Sachs Group, Inc. | 361,300 | 53,733 | |
Janus Capital Group, Inc. | 693,375 | 8,466 | |
Jefferies Group, Inc. | 285,000 | 7,279 | |
Morgan Stanley | 1,428,800 | 38,263 | |
State Street Corp. | 1,799,800 | 77,175 | |
T. Rowe Price Group, Inc. | 445,000 | 22,081 | |
| 295,266 | ||
Commercial Banks - 4.0% | |||
BB&T Corp. | 500,000 | 13,935 | |
Huntington Bancshares, Inc. | 878,800 | 4,209 | |
PNC Financial Services Group, Inc. | 741,800 | 41,118 | |
Sumitomo Mitsui Financial Group, Inc. | 212,600 | 6,912 | |
Synovus Financial Corp. | 100,000 | 276 | |
U.S. Bancorp, Delaware | 1,635,000 | 41,006 | |
Wells Fargo & Co. | 5,044,600 | 143,418 | |
| 250,874 | ||
Consumer Finance - 0.7% | |||
American Express Co. | 370,000 | 13,934 | |
Capital One Financial Corp. | 606,900 | 22,370 | |
Discover Financial Services | 28,321 | 387 | |
SLM Corp. (a) | 415,000 | 4,370 | |
| 41,061 | ||
Diversified Financial Services - 4.8% | |||
Bank of America Corp. | 5,743,000 | 87,179 | |
Citigroup, Inc. | 14,900,000 | 49,468 | |
CME Group, Inc. | 63,000 | 18,070 | |
JPMorgan Chase & Co. | 3,175,100 | 123,638 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Diversified Financial Services - continued | |||
Moody's Corp. | 470,000 | $ 12,967 | |
NBH Holdings Corp. Class A (a)(d) | 166,200 | 3,324 | |
| 294,646 | ||
Insurance - 2.8% | |||
ACE Ltd. | 465,000 | 22,911 | |
AFLAC, Inc. | 70,000 | 3,390 | |
Allstate Corp. | 560,000 | 16,761 | |
Assured Guaranty Ltd. | 385,000 | 8,724 | |
Berkshire Hathaway, Inc.: | |||
Class A (a) | 535 | 61,311 | |
Class B (a) | 70,000 | 5,350 | |
Hartford Financial Services Group, Inc. | 5,000 | 120 | |
Lincoln National Corp. | 408,800 | 10,048 | |
MBIA, Inc. (a)(c) | 865,000 | 4,264 | |
MetLife, Inc. | 640,000 | 22,605 | |
RenaissanceRe Holdings Ltd. | 358,000 | 19,396 | |
| 174,880 | ||
Real Estate Investment Trusts - 0.6% | |||
CBL & Associates Properties, Inc. | 459,200 | 4,592 | |
Public Storage | 185,000 | 14,648 | |
Simon Property Group, Inc. | 114,121 | 8,217 | |
SL Green Realty Corp. | 151,600 | 6,896 | |
| 34,353 | ||
Real Estate Management & Development - 0.3% | |||
CB Richard Ellis Group, Inc. Class A (a) | 1,780,000 | 21,894 | |
Thrifts & Mortgage Finance - 0.1% | |||
Radian Group, Inc. | 800,000 | 5,144 | |
TOTAL FINANCIALS | 1,118,118 | ||
HEALTH CARE - 13.7% | |||
Biotechnology - 2.3% | |||
Amgen, Inc. (a) | 816,800 | 47,766 | |
Amylin Pharmaceuticals, Inc. (a) | 900,000 | 16,182 | |
Biogen Idec, Inc. (a) | 12,800 | 688 | |
Celgene Corp. (a) | 325,000 | 18,454 | |
Cephalon, Inc. (a) | 318,000 | 20,301 | |
Dendreon Corp. (a)(c) | 265,000 | 7,341 | |
Gilead Sciences, Inc. (a) | 235,000 | 11,343 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
PDL BioPharma, Inc. | 1,100,000 | $ 7,040 | |
Vertex Pharmaceuticals, Inc. (a) | 465,000 | 17,856 | |
| 146,971 | ||
Health Care Equipment & Supplies - 1.7% | |||
Baxter International, Inc. | 100,000 | 5,759 | |
CareFusion Corp. (a) | 320,000 | 8,240 | |
Covidien PLC | 1,150,800 | 58,184 | |
ev3, Inc. (a) | 181,500 | 2,646 | |
Hospira, Inc. (a) | 325,000 | 16,458 | |
ResMed, Inc. (a) | 130,000 | 6,648 | |
St. Jude Medical, Inc. (a) | 152,800 | 5,765 | |
| 103,700 | ||
Health Care Providers & Services - 3.4% | |||
CIGNA Corp. | 450,000 | 15,197 | |
Express Scripts, Inc. (a) | 604,600 | 50,702 | |
Henry Schein, Inc. (a) | 885,000 | 47,834 | |
Medco Health Solutions, Inc. (a) | 565,000 | 34,736 | |
UnitedHealth Group, Inc. | 1,145,000 | 37,785 | |
WellPoint, Inc. (a) | 360,000 | 22,939 | |
| 209,193 | ||
Life Sciences Tools & Services - 0.3% | |||
Illumina, Inc. (a) | 265,000 | 9,723 | |
Life Technologies Corp. (a) | 150,000 | 7,457 | |
| 17,180 | ||
Pharmaceuticals - 6.0% | |||
Abbott Laboratories | 1,170,000 | 61,940 | |
Allergan, Inc. | 85,000 | 4,888 | |
Bristol-Myers Squibb Co. | 240,000 | 5,846 | |
Johnson & Johnson | 974,800 | 61,276 | |
Merck & Co., Inc. | 2,233,078 | 85,259 | |
Pfizer, Inc. | 6,702,500 | 125,069 | |
Roche Holding AG (participation certificate) | 55,000 | 9,227 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 310,000 | 17,583 | |
| 371,088 | ||
TOTAL HEALTH CARE | 848,132 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - 9.7% | |||
Aerospace & Defense - 2.6% | |||
AeroVironment, Inc. (a) | 110,000 | $ 3,748 | |
BE Aerospace, Inc. (a) | 600,000 | 13,458 | |
Lockheed Martin Corp. | 10,000 | 745 | |
Precision Castparts Corp. | 260,000 | 27,365 | |
The Boeing Co. | 380,000 | 23,028 | |
United Technologies Corp. | 1,360,000 | 91,773 | |
| 160,117 | ||
Air Freight & Logistics - 0.6% | |||
C.H. Robinson Worldwide, Inc. | 260,000 | 14,724 | |
FedEx Corp. | 320,000 | 25,072 | |
| 39,796 | ||
Airlines - 0.5% | |||
Delta Air Lines, Inc. (a) | 1,245,000 | 15,226 | |
Southwest Airlines Co. | 1,420,000 | 16,089 | |
UAL Corp. (a) | 10,000 | 122 | |
| 31,437 | ||
Building Products - 0.1% | |||
Masco Corp. | 652,600 | 8,849 | |
Construction & Engineering - 0.3% | |||
Jacobs Engineering Group, Inc. (a) | 405,000 | 15,305 | |
Orion Marine Group, Inc. (a) | 100,000 | 1,893 | |
| 17,198 | ||
Electrical Equipment - 0.1% | |||
Alstom SA | 10,000 | 668 | |
SunPower Corp. Class B (a) | 298,742 | 5,548 | |
Vestas Wind Systems AS (a) | 10,000 | 526 | |
| 6,742 | ||
Industrial Conglomerates - 1.5% | |||
3M Co. | 825,000 | 66,404 | |
General Electric Co. | 645,000 | 10,372 | |
McDermott International, Inc. (a) | 5,000 | 118 | |
Textron, Inc. | 738,100 | 14,415 | |
| 91,309 | ||
Machinery - 1.4% | |||
Cummins, Inc. | 605,000 | 27,322 | |
Danaher Corp. | 410,000 | 29,254 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Machinery - continued | |||
Eaton Corp. | 35,000 | $ 2,143 | |
Ingersoll-Rand Co. Ltd. | 890,000 | 28,889 | |
| 87,608 | ||
Professional Services - 0.6% | |||
Robert Half International, Inc. (c) | 1,360,000 | 36,611 | |
Verisk Analytics, Inc. | 8,000 | 225 | |
| 36,836 | ||
Road & Rail - 1.7% | |||
Avis Budget Group, Inc. (a) | 465,300 | 5,035 | |
CSX Corp. | 832,700 | 35,690 | |
Landstar System, Inc. | 685,000 | 24,859 | |
Union Pacific Corp. | 640,000 | 38,720 | |
| 104,304 | ||
Trading Companies & Distributors - 0.3% | |||
W.W. Grainger, Inc. | 170,000 | 16,878 | |
TOTAL INDUSTRIALS | 601,074 | ||
INFORMATION TECHNOLOGY - 22.3% | |||
Communications Equipment - 3.4% | |||
Cisco Systems, Inc. (a) | 5,659,900 | 127,178 | |
CommScope, Inc. (a) | 240,000 | 6,530 | |
Harris Corp. | 207,600 | 8,910 | |
Juniper Networks, Inc. (a) | 853,000 | 21,180 | |
Palm, Inc. (a) | 339,500 | 3,527 | |
QUALCOMM, Inc. | 785,000 | 30,764 | |
Research In Motion Ltd. (a) | 210,000 | 13,222 | |
| 211,311 | ||
Computers & Peripherals - 4.6% | |||
Apple, Inc. (a) | 716,800 | 137,712 | |
EMC Corp. (a) | 1,925,000 | 32,090 | |
Hewlett-Packard Co. | 2,489,700 | 117,190 | |
| 286,992 | ||
Electronic Equipment & Components - 1.4% | |||
Agilent Technologies, Inc. | 1,510,000 | 42,325 | |
Corning, Inc. | 1,396,900 | 25,256 | |
Tyco Electronics Ltd. | 720,000 | 17,914 | |
| 85,495 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - 2.4% | |||
eBay, Inc. (a) | 1,240,000 | $ 28,545 | |
Google, Inc. Class A (a) | 209,000 | 110,649 | |
Move, Inc. (a) | 1,346,025 | 2,356 | |
Tencent Holdings Ltd. | 10,000 | 187 | |
Yahoo!, Inc. (a) | 410,000 | 6,154 | |
| 147,891 | ||
IT Services - 1.6% | |||
Cognizant Technology Solutions Corp. Class A (a) | 575,000 | 25,105 | |
MasterCard, Inc. Class A | 100,000 | 24,990 | |
Paychex, Inc. | 480,000 | 13,915 | |
Visa, Inc. Class A | 414,400 | 33,993 | |
| 98,003 | ||
Semiconductors & Semiconductor Equipment - 4.0% | |||
Altera Corp. | 875,000 | 18,655 | |
Applied Materials, Inc. | 6,225,400 | 75,825 | |
ARM Holdings PLC | 1,700,000 | 5,195 | |
ASML Holding NV (NY Shares) | 2,125,000 | 66,406 | |
Intel Corp. | 1,583,500 | 30,720 | |
Lam Research Corp. (a) | 127,200 | 4,199 | |
MEMC Electronic Materials, Inc. (a) | 1,250,000 | 15,725 | |
Micron Technology, Inc. (a) | 1,305,900 | 11,387 | |
Xilinx, Inc. | 840,000 | 19,807 | |
| 247,919 | ||
Software - 4.9% | |||
Adobe Systems, Inc. (a) | 645,000 | 20,834 | |
BMC Software, Inc. (a) | 392,400 | 15,162 | |
Citrix Systems, Inc. (a) | 300,000 | 12,465 | |
Microsoft Corp. | 5,327,300 | 150,116 | |
Oracle Corp. | 3,775,000 | 87,052 | |
Red Hat, Inc. (a) | 240,000 | 6,533 | |
VMware, Inc. Class A (a) | 230,000 | 10,444 | |
| 302,606 | ||
TOTAL INFORMATION TECHNOLOGY | 1,380,217 | ||
MATERIALS - 3.4% | |||
Chemicals - 2.6% | |||
Albemarle Corp. | 680,000 | 24,290 | |
Dow Chemical Co. | 1,675,000 | 45,376 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Chemicals - continued | |||
Ecolab, Inc. | 465,000 | $ 20,414 | |
FMC Corp. | 335,000 | 17,065 | |
Praxair, Inc. | 595,000 | 44,815 | |
The Mosaic Co. | 245,000 | 13,110 | |
| 165,070 | ||
Metals & Mining - 0.8% | |||
AngloGold Ashanti Ltd. sponsored ADR | 427,700 | 15,265 | |
ArcelorMittal SA (NY Shares) Class A (c) | 312,500 | 12,088 | |
Barrick Gold Corp. | 510,000 | 17,704 | |
Freeport-McMoRan Copper & Gold, Inc. | 45,000 | 3,001 | |
| 48,058 | ||
TOTAL MATERIALS | 213,128 | ||
TELECOMMUNICATION SERVICES - 1.1% | |||
Diversified Telecommunication Services - 0.4% | |||
Verizon Communications, Inc. | 853,800 | 25,119 | |
Wireless Telecommunication Services - 0.7% | |||
American Tower Corp. Class A (a) | 790,000 | 33,536 | |
Sprint Nextel Corp. (a) | 3,385,000 | 11,103 | |
| 44,639 | ||
TOTAL TELECOMMUNICATION SERVICES | 69,758 | ||
UTILITIES - 0.3% | |||
Independent Power Producers & Energy Traders - 0.3% | |||
Constellation Energy Group, Inc. | 520,000 | 16,786 | |
TOTAL COMMON STOCKS (Cost $5,513,800) | 6,139,648 | ||
Convertible Preferred Stocks - 0.2% | |||
|
|
|
|
FINANCIALS - 0.2% | |||
Diversified Financial Services - 0.2% | |||
Bank of America Corp. (Cost $12,975) | 865,000 | 13,062 | |
Money Market Funds - 1.0% | |||
Shares | Value (000s) | ||
Fidelity Cash Central Fund, 0.17% (e) | 23,627,078 | $ 23,627 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(e) | 41,966,909 | 41,967 | |
TOTAL MONEY MARKET FUNDS (Cost $65,594) | 65,594 | ||
TOTAL INVESTMENT PORTFOLIO - 100.4% (Cost $5,592,369) | 6,218,304 | ||
NET OTHER ASSETS - (0.4)% | (27,057) | ||
NET ASSETS - 100% | $ 6,191,247 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) 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 $35,358,000 or 0.6% of net assets. |
(e) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
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 | $ 46 |
Fidelity Securities Lending Cash Central Fund | 107 |
Total | $ 153 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 786,220 | $ 786,220 | $ - | $ - |
Consumer Staples | 437,466 | 391,631 | 45,835 | - |
Energy | 668,749 | 668,749 | - | - |
Financials | 1,131,180 | 1,127,856 | - | 3,324 |
Health Care | 848,132 | 838,905 | 9,227 | - |
Industrials | 601,074 | 599,880 | 1,194 | - |
Information Technology | 1,380,217 | 1,375,022 | 5,195 | - |
Materials | 213,128 | 213,128 | - | - |
Telecommunication Services | 69,758 | 69,758 | - | - |
Utilities | 16,786 | 16,786 | - | - |
Money Market Funds | 65,594 | 65,594 | - | - |
Total Investments in Securities: | $ 6,218,304 | $ 6,153,529 | $ 61,451 | $ 3,324 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) |
|
Investments in Securities: | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | 3,324 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in/out of Level 3 | - |
Ending Balance | $ 3,324 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2010 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $3,048,336,000 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $3,596,087,000 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $40,382) - See accompanying schedule: Unaffiliated issuers (cost $5,526,775) | $ 6,152,710 |
|
Fidelity Central Funds (cost $65,594) | 65,594 |
|
Total Investments (cost $5,592,369) |
| $ 6,218,304 |
Cash | 1,977 | |
Receivable for investments sold | 188,552 | |
Receivable for fund shares sold | 3,452 | |
Dividends receivable | 3,118 | |
Distributions receivable from Fidelity Central Funds | 12 | |
Prepaid expenses | 26 | |
Other receivables | 663 | |
Total assets | 6,416,104 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 171,740 | |
Payable for fund shares redeemed | 6,564 | |
Accrued management fee | 2,503 | |
Other affiliated payables | 1,482 | |
Other payables and accrued expenses | 601 | |
Collateral on securities loaned, at value | 41,967 | |
Total liabilities | 224,857 | |
|
|
|
Net Assets | $ 6,191,247 | |
Net Assets consist of: |
| |
Paid in capital | $ 12,074,031 | |
Distributions in excess of net investment income | (1,385) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (6,507,335) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 625,936 | |
Net Assets | $ 6,191,247 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | January 31, 2010 (Unaudited) | |
|
|
|
Growth and Income: | $ 15.50 | |
|
|
|
Class K: | $ 15.49 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended January 31, 2010 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 45,703 |
Income from Fidelity Central Funds |
| 153 |
Total income |
| 45,856 |
|
|
|
Expenses | ||
Management fee | $ 14,989 | |
Transfer agent fees | 8,518 | |
Accounting and security lending fees | 664 | |
Custodian fees and expenses | 58 | |
Independent trustees' compensation | 22 | |
Appreciation in deferred trustee compensation account | 1 | |
Registration fees | 26 | |
Audit | 45 | |
Legal | 42 | |
Interest | 3 | |
Miscellaneous | 70 | |
Total expenses before reductions | 24,438 | |
Expense reductions | (255) | 24,183 |
Net investment income (loss) | 21,673 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 303,492 | |
Foreign currency transactions | (2) | |
Capital gain distributions from Fidelity Central Funds | 4 | |
Total net realized gain (loss) |
| 303,494 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 199,259 | |
Assets and liabilities in foreign currencies | 9 | |
Total change in net unrealized appreciation (depreciation) |
| 199,268 |
Net gain (loss) | 502,762 | |
Net increase (decrease) in net assets resulting from operations | $ 524,435 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 21,673 | $ 76,215 |
Net realized gain (loss) | 303,494 | (6,629,356) |
Change in net unrealized appreciation (depreciation) | 199,268 | 2,408,298 |
Net increase (decrease) in net assets resulting | 524,435 | (4,144,843) |
Distributions to shareholders from net investment income | (22,964) | (95,086) |
Distributions to shareholders from net realized gain | (3,481) | (16,566) |
Total distributions | (26,445) | (111,652) |
Share transactions - net increase (decrease) | (648,853) | (1,953,179) |
Total increase (decrease) in net assets | (150,863) | (6,209,674) |
|
|
|
Net Assets | ||
Beginning of period | 6,342,110 | 12,551,784 |
End of period (including distributions in excess of net investment income of $1,385 and distributions in excess of net investment income of $94, respectively) | $ 6,191,247 | $ 6,342,110 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Growth & Income
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 14.38 | $ 21.88 | $ 31.92 | $ 34.16 | $ 38.42 | $ 35.46 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .05 | .15 | .35 | .27 | .34 | .60 G |
Net realized and unrealized gain (loss) | 1.13 | (7.43) | (6.25) | 3.84 | .18 | 3.31 |
Total from investment operations | 1.18 | (7.28) | (5.90) | 4.11 | .52 | 3.91 |
Distributions from net investment income | (.05) | (.19) | (.33) | (.27) | (.38) | (.61) |
Distributions from net realized gain | (.01) | (.03) | (3.81) | (6.08) | (4.40) | (.34) |
Total distributions | (.06) | (.22) | (4.14) | (6.35) | (4.78) | (.95) |
Net asset value, end of period | $ 15.50 | $ 14.38 | $ 21.88 | $ 31.92 | $ 34.16 | $ 38.42 |
Total Return B, C | 8.23% | (33.32)% | (20.91)% | 14.28% | 1.22% | 11.15% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | .76% A | .78% | .68% | .68% | .69% | .69% |
Expenses net of fee waivers, if any | .76% A | .78% | .68% | .68% | .69% | .69% |
Expenses net of all reductions | .75% A | .78% | .67% | .67% | .65% | .68% |
Net investment income (loss) | .65% A | 1.07% | 1.29% | .84% | .94% | 1.63% G |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 5,932 | $ 5,993 | $ 12,552 | $ 22,693 | $ 28,861 | $ 31,789 |
Portfolio turnover rate F | 86% A | 122% | 52% | 52% | 120% | 31% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a special dividend which amounted to $.13 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.27%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended January 31, 2010 | Years ended July 31, | |
(Unaudited) | 2009 | 2008 G | |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 14.38 | $ 21.88 | $ 25.34 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | .07 | .16 | .09 |
Net realized and unrealized gain (loss) | 1.12 | (7.40) | (3.45) |
Total from investment operations | 1.19 | (7.24) | (3.36) |
Distributions from net investment income | (.07) | (.23) | (.10) |
Distributions from net realized gain | (.01) | (.03) | - |
Total distributions | (.08) | (.26) | (.10) |
Net asset value, end of period | $ 15.49 | $ 14.38 | $ 21.88 |
Total Return B, C | 8.28% | (33.12)% | (13.22)% |
Ratios to Average Net Assets E, H |
|
|
|
Expenses before reductions | .55% A | .56% | .55% A |
Expenses net of fee waivers, if any | .55% A | .56% | .55% A |
Expenses net of all reductions | .54% A | .55% | .55% A |
Net investment income (loss) | .87% A | 1.29% | 1.73% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 259,258 | $ 349,324 | $ 87 |
Portfolio turnover rate F | 86% A | 122% | 52% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Growth & Income Portfolio (the Fund) is a fund of Fidelity Securities Fund (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 Growth & Income and Class K 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 commencement of Class K, the Fund began offering conversion privileges between Growth & Income and Class K to eligible shareholders of Growth & Income. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as level 2 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, foreign currency transactions, market discount, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 945,571 |
Gross unrealized depreciation | (417,399) |
Net unrealized appreciation (depreciation) | $ 528,172 |
|
|
Tax cost | $ 5,690,132 |
Semiannual Report
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $2,721,610 and $3,303,683, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .46% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Growth & Income. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Growth & Income | $ 8,432 | .27 |
Class K | 86 | .06 |
| $ 8,518 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees - continued
the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $23 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily | Weighted | Interest |
Borrower | $ 16,141 | .40% | $ 3 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $13 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are
Semiannual Report
8. Security Lending - continued
disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $107.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $255 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Growth & Income | $ 21,612 | $ 92,019 |
Class K | 1,352 | 3,067 |
Total | $ 22,964 | $ 95,086 |
From net realized gain |
|
|
Growth & Income | $ 3,284 | $ 16,537 |
Class K | 197 | 29 |
Total | $ 3,481 | $ 16,566 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Growth & Income |
|
|
|
|
Shares sold | 10,199 | 34,825 | $ 158,316 | $ 492,141 |
Conversion to Class K | (593) | (26,363) | (8,751) | (389,259) |
Reinvestment of distributions | 1,574 | 6,899 | 24,066 | 105,157 |
Shares redeemed | (45,072) | (172,362) | (702,756) | (2,530,518) |
Net increase (decrease) | (33,892) | (157,001) | $ (529,125) | $ (2,322,479) |
Class K |
|
|
|
|
Shares sold | 2,972 | 3,336 | $ 46,741 | $ 44,336 |
Conversion from Growth & Income | 593 | 26,372 | 8,751 | 389,259 |
Reinvestment of distributions | 102 | 232 | 1,549 | 3,096 |
Shares redeemed | (11,228) | (5,644) | (176,769) | (67,387) |
Net increase (decrease) | (7,561) | 24,296 | $ (119,728) | $ 369,304 |
A Conversion transactions for Class K and Growth & Income are for the period August 1, 2009 through August 31, 2009.
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
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Semiannual Report
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Semiannual Report
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GAI-USAN-0310 1.789285.107
Fidelity®
Growth & Income
Portfolio -
Class K
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.fidelity.advisor.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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 (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.
Semiannual Report
Shareholder Expense Example - continued
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.
|
|
|
| Expenses Paid |
Growth & Income | .76% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,082.30 | $ 3.99 |
Hypothetical A |
| $ 1,000.00 | $ 1,021.37 | $ 3.87 |
Class K | .55% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,082.80 | $ 2.89 |
Hypothetical A |
| $ 1,000.00 | $ 1,022.43 | $ 2.80 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Microsoft Corp. | 2.4 | 2.8 |
Wells Fargo & Co. | 2.3 | 1.3 |
Apple, Inc. | 2.2 | 1.7 |
Exxon Mobil Corp. | 2.2 | 3.2 |
Cisco Systems, Inc. | 2.1 | 1.8 |
Pfizer, Inc. | 2.0 | 1.5 |
JPMorgan Chase & Co. | 2.0 | 2.2 |
Hewlett-Packard Co. | 1.9 | 1.7 |
Google, Inc. Class A | 1.8 | 1.3 |
United Technologies Corp. | 1.5 | 1.0 |
| 20.4 | |
Top Five Market Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Information Technology | 22.3 | 22.8 |
Financials | 18.3 | 15.9 |
Health Care | 13.7 | 15.1 |
Consumer Discretionary | 12.7 | 12.0 |
Energy | 10.8 | 10.5 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks 99.2% |
| ![]() | Stocks 98.5% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 9.1% |
| ** Foreign investments | 10.6% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.2% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.7% | |||
Auto Components - 1.1% | |||
ArvinMeritor, Inc. (a) | 570,000 | $ 5,523 | |
BorgWarner, Inc. | 270,000 | 9,474 | |
Fuel Systems Solutions, Inc. (a) | 65,000 | 2,317 | |
Johnson Controls, Inc. | 1,050,000 | 29,222 | |
Tenneco, Inc. (a) | 355,300 | 6,282 | |
The Goodyear Tire & Rubber Co. (a) | 1,345,677 | 17,951 | |
| 70,769 | ||
Automobiles - 0.8% | |||
Ford Motor Co. (a) | 1,850,000 | 20,054 | |
Harley-Davidson, Inc. | 580,000 | 13,189 | |
Toyota Motor Corp. sponsored ADR | 205,000 | 15,785 | |
| 49,028 | ||
Distributors - 0.1% | |||
Li & Fung Ltd. | 1,500,000 | 6,878 | |
Hotels, Restaurants & Leisure - 1.0% | |||
Buffalo Wild Wings, Inc. (a) | 348,489 | 16,313 | |
Carnival Corp. unit | 340,000 | 11,332 | |
Darden Restaurants, Inc. | 255,000 | 9,425 | |
Marriott International, Inc. Class A (c) | 180,618 | 4,738 | |
Sonic Corp. (a) | 397,600 | 3,352 | |
Starbucks Corp. (a) | 900,000 | 19,611 | |
| 64,771 | ||
Household Durables - 2.2% | |||
Ethan Allen Interiors, Inc. | 24,900 | 361 | |
KB Home (c) | 2,350,000 | 35,908 | |
Newell Rubbermaid, Inc. | 535,000 | 7,260 | |
Pulte Homes, Inc. | 2,252,370 | 23,695 | |
Ryland Group, Inc. | 1,480,000 | 32,945 | |
Toll Brothers, Inc. (a) | 510,292 | 9,425 | |
Whirlpool Corp. | 338,100 | 25,418 | |
| 135,012 | ||
Internet & Catalog Retail - 0.3% | |||
Amazon.com, Inc. (a) | 123,000 | 15,425 | |
Media - 2.5% | |||
Comcast Corp. Class A | 900,000 | 14,247 | |
DIRECTV (a) | 550,000 | 16,693 | |
Lamar Advertising Co. Class A (a)(c) | 295,000 | 8,437 | |
McGraw-Hill Companies, Inc. | 880,000 | 31,196 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Media - continued | |||
The Walt Disney Co. | 1,875,000 | $ 55,406 | |
Time Warner, Inc. | 1,095,233 | 30,064 | |
| 156,043 | ||
Multiline Retail - 1.4% | |||
Kohl's Corp. (a) | 395,000 | 19,896 | |
Target Corp. | 1,291,000 | 66,190 | |
| 86,086 | ||
Specialty Retail - 3.0% | |||
American Eagle Outfitters, Inc. | 385,000 | 6,118 | |
Best Buy Co., Inc. | 335,000 | 12,278 | |
Cabela's, Inc. Class A (a)(c) | 220,000 | 3,546 | |
Gymboree Corp. (a) | 115,000 | 4,486 | |
Limited Brands, Inc. | 350,000 | 6,657 | |
Lowe's Companies, Inc. | 2,550,000 | 55,208 | |
PetSmart, Inc. | 40,000 | 1,030 | |
RadioShack Corp. | 640,000 | 12,493 | |
Ross Stores, Inc. | 90,000 | 4,134 | |
Sherwin-Williams Co. | 15,000 | 950 | |
Staples, Inc. | 2,440,000 | 57,242 | |
TJX Companies, Inc. | 570,000 | 21,666 | |
| 185,808 | ||
Textiles, Apparel & Luxury Goods - 0.3% | |||
Polo Ralph Lauren Corp. Class A | 200,000 | 16,400 | |
TOTAL CONSUMER DISCRETIONARY | 786,220 | ||
CONSUMER STAPLES - 7.1% | |||
Beverages - 1.5% | |||
Dr Pepper Snapple Group, Inc. | 250,000 | 6,915 | |
The Coca-Cola Co. | 1,545,000 | 83,816 | |
| 90,731 | ||
Food & Staples Retailing - 1.6% | |||
CVS Caremark Corp. | 672,900 | 21,782 | |
Wal-Mart Stores, Inc. | 1,395,000 | 74,535 | |
Walgreen Co. | 80,000 | 2,884 | |
| 99,201 | ||
Food Products - 1.0% | |||
Bunge Ltd. | 200,000 | 11,758 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Food Products - continued | |||
Corn Products International, Inc. | 135,000 | $ 3,837 | |
Nestle SA (Reg.) | 967,000 | 45,835 | |
| 61,430 | ||
Household Products - 1.8% | |||
Colgate-Palmolive Co. | 390,000 | 31,212 | |
Procter & Gamble Co. | 1,315,000 | 80,938 | |
| 112,150 | ||
Tobacco - 1.2% | |||
Philip Morris International, Inc. | 1,625,000 | 73,954 | |
TOTAL CONSUMER STAPLES | 437,466 | ||
ENERGY - 10.8% | |||
Energy Equipment & Services - 4.1% | |||
Cameron International Corp. (a) | 560,000 | 21,090 | |
Ensco International Ltd. ADR | 150,000 | 5,855 | |
Halliburton Co. | 2,129,400 | 62,200 | |
Helmerich & Payne, Inc. | 295,000 | 12,340 | |
Nabors Industries Ltd. (a) | 880,000 | 19,624 | |
Schlumberger Ltd. | 1,389,500 | 88,178 | |
Smith International, Inc. | 935,000 | 28,349 | |
Weatherford International Ltd. (a) | 1,151,800 | 18,060 | |
| 255,696 | ||
Oil, Gas & Consumable Fuels - 6.7% | |||
Anadarko Petroleum Corp. | 440,000 | 28,063 | |
Apache Corp. | 285,000 | 28,149 | |
Arch Coal, Inc. | 478,100 | 10,074 | |
Chesapeake Energy Corp. | 135,000 | 3,345 | |
EOG Resources, Inc. | 125,000 | 11,303 | |
Exxon Mobil Corp. | 2,124,300 | 136,869 | |
Occidental Petroleum Corp. | 1,062,900 | 83,268 | |
Peabody Energy Corp. | 410,000 | 17,269 | |
Petrohawk Energy Corp. (a) | 470,000 | 10,495 | |
Plains Exploration & Production Co. (a) | 689,300 | 22,988 | |
Range Resources Corp. | 350,000 | 16,100 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Southwestern Energy Co. (a) | 715,000 | $ 30,659 | |
Ultra Petroleum Corp. (a) | 315,000 | 14,471 | |
| 413,053 | ||
TOTAL ENERGY | 668,749 | ||
FINANCIALS - 18.1% | |||
Capital Markets - 4.8% | |||
Ameriprise Financial, Inc. | 800,000 | 30,592 | |
AP Alternative Assets, L.P. Restricted Depositary Units (a)(d) | 4,449,200 | 32,034 | |
Bank of New York Mellon Corp. | 630,000 | 18,327 | |
Charles Schwab Corp. | 400,000 | 7,316 | |
Goldman Sachs Group, Inc. | 361,300 | 53,733 | |
Janus Capital Group, Inc. | 693,375 | 8,466 | |
Jefferies Group, Inc. | 285,000 | 7,279 | |
Morgan Stanley | 1,428,800 | 38,263 | |
State Street Corp. | 1,799,800 | 77,175 | |
T. Rowe Price Group, Inc. | 445,000 | 22,081 | |
| 295,266 | ||
Commercial Banks - 4.0% | |||
BB&T Corp. | 500,000 | 13,935 | |
Huntington Bancshares, Inc. | 878,800 | 4,209 | |
PNC Financial Services Group, Inc. | 741,800 | 41,118 | |
Sumitomo Mitsui Financial Group, Inc. | 212,600 | 6,912 | |
Synovus Financial Corp. | 100,000 | 276 | |
U.S. Bancorp, Delaware | 1,635,000 | 41,006 | |
Wells Fargo & Co. | 5,044,600 | 143,418 | |
| 250,874 | ||
Consumer Finance - 0.7% | |||
American Express Co. | 370,000 | 13,934 | |
Capital One Financial Corp. | 606,900 | 22,370 | |
Discover Financial Services | 28,321 | 387 | |
SLM Corp. (a) | 415,000 | 4,370 | |
| 41,061 | ||
Diversified Financial Services - 4.8% | |||
Bank of America Corp. | 5,743,000 | 87,179 | |
Citigroup, Inc. | 14,900,000 | 49,468 | |
CME Group, Inc. | 63,000 | 18,070 | |
JPMorgan Chase & Co. | 3,175,100 | 123,638 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Diversified Financial Services - continued | |||
Moody's Corp. | 470,000 | $ 12,967 | |
NBH Holdings Corp. Class A (a)(d) | 166,200 | 3,324 | |
| 294,646 | ||
Insurance - 2.8% | |||
ACE Ltd. | 465,000 | 22,911 | |
AFLAC, Inc. | 70,000 | 3,390 | |
Allstate Corp. | 560,000 | 16,761 | |
Assured Guaranty Ltd. | 385,000 | 8,724 | |
Berkshire Hathaway, Inc.: | |||
Class A (a) | 535 | 61,311 | |
Class B (a) | 70,000 | 5,350 | |
Hartford Financial Services Group, Inc. | 5,000 | 120 | |
Lincoln National Corp. | 408,800 | 10,048 | |
MBIA, Inc. (a)(c) | 865,000 | 4,264 | |
MetLife, Inc. | 640,000 | 22,605 | |
RenaissanceRe Holdings Ltd. | 358,000 | 19,396 | |
| 174,880 | ||
Real Estate Investment Trusts - 0.6% | |||
CBL & Associates Properties, Inc. | 459,200 | 4,592 | |
Public Storage | 185,000 | 14,648 | |
Simon Property Group, Inc. | 114,121 | 8,217 | |
SL Green Realty Corp. | 151,600 | 6,896 | |
| 34,353 | ||
Real Estate Management & Development - 0.3% | |||
CB Richard Ellis Group, Inc. Class A (a) | 1,780,000 | 21,894 | |
Thrifts & Mortgage Finance - 0.1% | |||
Radian Group, Inc. | 800,000 | 5,144 | |
TOTAL FINANCIALS | 1,118,118 | ||
HEALTH CARE - 13.7% | |||
Biotechnology - 2.3% | |||
Amgen, Inc. (a) | 816,800 | 47,766 | |
Amylin Pharmaceuticals, Inc. (a) | 900,000 | 16,182 | |
Biogen Idec, Inc. (a) | 12,800 | 688 | |
Celgene Corp. (a) | 325,000 | 18,454 | |
Cephalon, Inc. (a) | 318,000 | 20,301 | |
Dendreon Corp. (a)(c) | 265,000 | 7,341 | |
Gilead Sciences, Inc. (a) | 235,000 | 11,343 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
PDL BioPharma, Inc. | 1,100,000 | $ 7,040 | |
Vertex Pharmaceuticals, Inc. (a) | 465,000 | 17,856 | |
| 146,971 | ||
Health Care Equipment & Supplies - 1.7% | |||
Baxter International, Inc. | 100,000 | 5,759 | |
CareFusion Corp. (a) | 320,000 | 8,240 | |
Covidien PLC | 1,150,800 | 58,184 | |
ev3, Inc. (a) | 181,500 | 2,646 | |
Hospira, Inc. (a) | 325,000 | 16,458 | |
ResMed, Inc. (a) | 130,000 | 6,648 | |
St. Jude Medical, Inc. (a) | 152,800 | 5,765 | |
| 103,700 | ||
Health Care Providers & Services - 3.4% | |||
CIGNA Corp. | 450,000 | 15,197 | |
Express Scripts, Inc. (a) | 604,600 | 50,702 | |
Henry Schein, Inc. (a) | 885,000 | 47,834 | |
Medco Health Solutions, Inc. (a) | 565,000 | 34,736 | |
UnitedHealth Group, Inc. | 1,145,000 | 37,785 | |
WellPoint, Inc. (a) | 360,000 | 22,939 | |
| 209,193 | ||
Life Sciences Tools & Services - 0.3% | |||
Illumina, Inc. (a) | 265,000 | 9,723 | |
Life Technologies Corp. (a) | 150,000 | 7,457 | |
| 17,180 | ||
Pharmaceuticals - 6.0% | |||
Abbott Laboratories | 1,170,000 | 61,940 | |
Allergan, Inc. | 85,000 | 4,888 | |
Bristol-Myers Squibb Co. | 240,000 | 5,846 | |
Johnson & Johnson | 974,800 | 61,276 | |
Merck & Co., Inc. | 2,233,078 | 85,259 | |
Pfizer, Inc. | 6,702,500 | 125,069 | |
Roche Holding AG (participation certificate) | 55,000 | 9,227 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 310,000 | 17,583 | |
| 371,088 | ||
TOTAL HEALTH CARE | 848,132 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - 9.7% | |||
Aerospace & Defense - 2.6% | |||
AeroVironment, Inc. (a) | 110,000 | $ 3,748 | |
BE Aerospace, Inc. (a) | 600,000 | 13,458 | |
Lockheed Martin Corp. | 10,000 | 745 | |
Precision Castparts Corp. | 260,000 | 27,365 | |
The Boeing Co. | 380,000 | 23,028 | |
United Technologies Corp. | 1,360,000 | 91,773 | |
| 160,117 | ||
Air Freight & Logistics - 0.6% | |||
C.H. Robinson Worldwide, Inc. | 260,000 | 14,724 | |
FedEx Corp. | 320,000 | 25,072 | |
| 39,796 | ||
Airlines - 0.5% | |||
Delta Air Lines, Inc. (a) | 1,245,000 | 15,226 | |
Southwest Airlines Co. | 1,420,000 | 16,089 | |
UAL Corp. (a) | 10,000 | 122 | |
| 31,437 | ||
Building Products - 0.1% | |||
Masco Corp. | 652,600 | 8,849 | |
Construction & Engineering - 0.3% | |||
Jacobs Engineering Group, Inc. (a) | 405,000 | 15,305 | |
Orion Marine Group, Inc. (a) | 100,000 | 1,893 | |
| 17,198 | ||
Electrical Equipment - 0.1% | |||
Alstom SA | 10,000 | 668 | |
SunPower Corp. Class B (a) | 298,742 | 5,548 | |
Vestas Wind Systems AS (a) | 10,000 | 526 | |
| 6,742 | ||
Industrial Conglomerates - 1.5% | |||
3M Co. | 825,000 | 66,404 | |
General Electric Co. | 645,000 | 10,372 | |
McDermott International, Inc. (a) | 5,000 | 118 | |
Textron, Inc. | 738,100 | 14,415 | |
| 91,309 | ||
Machinery - 1.4% | |||
Cummins, Inc. | 605,000 | 27,322 | |
Danaher Corp. | 410,000 | 29,254 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Machinery - continued | |||
Eaton Corp. | 35,000 | $ 2,143 | |
Ingersoll-Rand Co. Ltd. | 890,000 | 28,889 | |
| 87,608 | ||
Professional Services - 0.6% | |||
Robert Half International, Inc. (c) | 1,360,000 | 36,611 | |
Verisk Analytics, Inc. | 8,000 | 225 | |
| 36,836 | ||
Road & Rail - 1.7% | |||
Avis Budget Group, Inc. (a) | 465,300 | 5,035 | |
CSX Corp. | 832,700 | 35,690 | |
Landstar System, Inc. | 685,000 | 24,859 | |
Union Pacific Corp. | 640,000 | 38,720 | |
| 104,304 | ||
Trading Companies & Distributors - 0.3% | |||
W.W. Grainger, Inc. | 170,000 | 16,878 | |
TOTAL INDUSTRIALS | 601,074 | ||
INFORMATION TECHNOLOGY - 22.3% | |||
Communications Equipment - 3.4% | |||
Cisco Systems, Inc. (a) | 5,659,900 | 127,178 | |
CommScope, Inc. (a) | 240,000 | 6,530 | |
Harris Corp. | 207,600 | 8,910 | |
Juniper Networks, Inc. (a) | 853,000 | 21,180 | |
Palm, Inc. (a) | 339,500 | 3,527 | |
QUALCOMM, Inc. | 785,000 | 30,764 | |
Research In Motion Ltd. (a) | 210,000 | 13,222 | |
| 211,311 | ||
Computers & Peripherals - 4.6% | |||
Apple, Inc. (a) | 716,800 | 137,712 | |
EMC Corp. (a) | 1,925,000 | 32,090 | |
Hewlett-Packard Co. | 2,489,700 | 117,190 | |
| 286,992 | ||
Electronic Equipment & Components - 1.4% | |||
Agilent Technologies, Inc. | 1,510,000 | 42,325 | |
Corning, Inc. | 1,396,900 | 25,256 | |
Tyco Electronics Ltd. | 720,000 | 17,914 | |
| 85,495 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - 2.4% | |||
eBay, Inc. (a) | 1,240,000 | $ 28,545 | |
Google, Inc. Class A (a) | 209,000 | 110,649 | |
Move, Inc. (a) | 1,346,025 | 2,356 | |
Tencent Holdings Ltd. | 10,000 | 187 | |
Yahoo!, Inc. (a) | 410,000 | 6,154 | |
| 147,891 | ||
IT Services - 1.6% | |||
Cognizant Technology Solutions Corp. Class A (a) | 575,000 | 25,105 | |
MasterCard, Inc. Class A | 100,000 | 24,990 | |
Paychex, Inc. | 480,000 | 13,915 | |
Visa, Inc. Class A | 414,400 | 33,993 | |
| 98,003 | ||
Semiconductors & Semiconductor Equipment - 4.0% | |||
Altera Corp. | 875,000 | 18,655 | |
Applied Materials, Inc. | 6,225,400 | 75,825 | |
ARM Holdings PLC | 1,700,000 | 5,195 | |
ASML Holding NV (NY Shares) | 2,125,000 | 66,406 | |
Intel Corp. | 1,583,500 | 30,720 | |
Lam Research Corp. (a) | 127,200 | 4,199 | |
MEMC Electronic Materials, Inc. (a) | 1,250,000 | 15,725 | |
Micron Technology, Inc. (a) | 1,305,900 | 11,387 | |
Xilinx, Inc. | 840,000 | 19,807 | |
| 247,919 | ||
Software - 4.9% | |||
Adobe Systems, Inc. (a) | 645,000 | 20,834 | |
BMC Software, Inc. (a) | 392,400 | 15,162 | |
Citrix Systems, Inc. (a) | 300,000 | 12,465 | |
Microsoft Corp. | 5,327,300 | 150,116 | |
Oracle Corp. | 3,775,000 | 87,052 | |
Red Hat, Inc. (a) | 240,000 | 6,533 | |
VMware, Inc. Class A (a) | 230,000 | 10,444 | |
| 302,606 | ||
TOTAL INFORMATION TECHNOLOGY | 1,380,217 | ||
MATERIALS - 3.4% | |||
Chemicals - 2.6% | |||
Albemarle Corp. | 680,000 | 24,290 | |
Dow Chemical Co. | 1,675,000 | 45,376 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Chemicals - continued | |||
Ecolab, Inc. | 465,000 | $ 20,414 | |
FMC Corp. | 335,000 | 17,065 | |
Praxair, Inc. | 595,000 | 44,815 | |
The Mosaic Co. | 245,000 | 13,110 | |
| 165,070 | ||
Metals & Mining - 0.8% | |||
AngloGold Ashanti Ltd. sponsored ADR | 427,700 | 15,265 | |
ArcelorMittal SA (NY Shares) Class A (c) | 312,500 | 12,088 | |
Barrick Gold Corp. | 510,000 | 17,704 | |
Freeport-McMoRan Copper & Gold, Inc. | 45,000 | 3,001 | |
| 48,058 | ||
TOTAL MATERIALS | 213,128 | ||
TELECOMMUNICATION SERVICES - 1.1% | |||
Diversified Telecommunication Services - 0.4% | |||
Verizon Communications, Inc. | 853,800 | 25,119 | |
Wireless Telecommunication Services - 0.7% | |||
American Tower Corp. Class A (a) | 790,000 | 33,536 | |
Sprint Nextel Corp. (a) | 3,385,000 | 11,103 | |
| 44,639 | ||
TOTAL TELECOMMUNICATION SERVICES | 69,758 | ||
UTILITIES - 0.3% | |||
Independent Power Producers & Energy Traders - 0.3% | |||
Constellation Energy Group, Inc. | 520,000 | 16,786 | |
TOTAL COMMON STOCKS (Cost $5,513,800) | 6,139,648 | ||
Convertible Preferred Stocks - 0.2% | |||
|
|
|
|
FINANCIALS - 0.2% | |||
Diversified Financial Services - 0.2% | |||
Bank of America Corp. (Cost $12,975) | 865,000 | 13,062 | |
Money Market Funds - 1.0% | |||
Shares | Value (000s) | ||
Fidelity Cash Central Fund, 0.17% (e) | 23,627,078 | $ 23,627 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(e) | 41,966,909 | 41,967 | |
TOTAL MONEY MARKET FUNDS (Cost $65,594) | 65,594 | ||
TOTAL INVESTMENT PORTFOLIO - 100.4% (Cost $5,592,369) | 6,218,304 | ||
NET OTHER ASSETS - (0.4)% | (27,057) | ||
NET ASSETS - 100% | $ 6,191,247 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) 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 $35,358,000 or 0.6% of net assets. |
(e) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
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 | $ 46 |
Fidelity Securities Lending Cash Central Fund | 107 |
Total | $ 153 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 786,220 | $ 786,220 | $ - | $ - |
Consumer Staples | 437,466 | 391,631 | 45,835 | - |
Energy | 668,749 | 668,749 | - | - |
Financials | 1,131,180 | 1,127,856 | - | 3,324 |
Health Care | 848,132 | 838,905 | 9,227 | - |
Industrials | 601,074 | 599,880 | 1,194 | - |
Information Technology | 1,380,217 | 1,375,022 | 5,195 | - |
Materials | 213,128 | 213,128 | - | - |
Telecommunication Services | 69,758 | 69,758 | - | - |
Utilities | 16,786 | 16,786 | - | - |
Money Market Funds | 65,594 | 65,594 | - | - |
Total Investments in Securities: | $ 6,218,304 | $ 6,153,529 | $ 61,451 | $ 3,324 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) |
|
Investments in Securities: | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | 3,324 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in/out of Level 3 | - |
Ending Balance | $ 3,324 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2010 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $3,048,336,000 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $3,596,087,000 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $40,382) - See accompanying schedule: Unaffiliated issuers (cost $5,526,775) | $ 6,152,710 |
|
Fidelity Central Funds (cost $65,594) | 65,594 |
|
Total Investments (cost $5,592,369) |
| $ 6,218,304 |
Cash | 1,977 | |
Receivable for investments sold | 188,552 | |
Receivable for fund shares sold | 3,452 | |
Dividends receivable | 3,118 | |
Distributions receivable from Fidelity Central Funds | 12 | |
Prepaid expenses | 26 | |
Other receivables | 663 | |
Total assets | 6,416,104 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 171,740 | |
Payable for fund shares redeemed | 6,564 | |
Accrued management fee | 2,503 | |
Other affiliated payables | 1,482 | |
Other payables and accrued expenses | 601 | |
Collateral on securities loaned, at value | 41,967 | |
Total liabilities | 224,857 | |
|
|
|
Net Assets | $ 6,191,247 | |
Net Assets consist of: |
| |
Paid in capital | $ 12,074,031 | |
Distributions in excess of net investment income | (1,385) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (6,507,335) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 625,936 | |
Net Assets | $ 6,191,247 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | January 31, 2010 (Unaudited) | |
|
|
|
Growth and Income: | $ 15.50 | |
|
|
|
Class K: | $ 15.49 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended January 31, 2010 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 45,703 |
Income from Fidelity Central Funds |
| 153 |
Total income |
| 45,856 |
|
|
|
Expenses | ||
Management fee | $ 14,989 | |
Transfer agent fees | 8,518 | |
Accounting and security lending fees | 664 | |
Custodian fees and expenses | 58 | |
Independent trustees' compensation | 22 | |
Appreciation in deferred trustee compensation account | 1 | |
Registration fees | 26 | |
Audit | 45 | |
Legal | 42 | |
Interest | 3 | |
Miscellaneous | 70 | |
Total expenses before reductions | 24,438 | |
Expense reductions | (255) | 24,183 |
Net investment income (loss) | 21,673 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 303,492 | |
Foreign currency transactions | (2) | |
Capital gain distributions from Fidelity Central Funds | 4 | |
Total net realized gain (loss) |
| 303,494 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 199,259 | |
Assets and liabilities in foreign currencies | 9 | |
Total change in net unrealized appreciation (depreciation) |
| 199,268 |
Net gain (loss) | 502,762 | |
Net increase (decrease) in net assets resulting from operations | $ 524,435 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 21,673 | $ 76,215 |
Net realized gain (loss) | 303,494 | (6,629,356) |
Change in net unrealized appreciation (depreciation) | 199,268 | 2,408,298 |
Net increase (decrease) in net assets resulting | 524,435 | (4,144,843) |
Distributions to shareholders from net investment income | (22,964) | (95,086) |
Distributions to shareholders from net realized gain | (3,481) | (16,566) |
Total distributions | (26,445) | (111,652) |
Share transactions - net increase (decrease) | (648,853) | (1,953,179) |
Total increase (decrease) in net assets | (150,863) | (6,209,674) |
|
|
|
Net Assets | ||
Beginning of period | 6,342,110 | 12,551,784 |
End of period (including distributions in excess of net investment income of $1,385 and distributions in excess of net investment income of $94, respectively) | $ 6,191,247 | $ 6,342,110 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Growth & Income
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 14.38 | $ 21.88 | $ 31.92 | $ 34.16 | $ 38.42 | $ 35.46 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .05 | .15 | .35 | .27 | .34 | .60 G |
Net realized and unrealized gain (loss) | 1.13 | (7.43) | (6.25) | 3.84 | .18 | 3.31 |
Total from investment operations | 1.18 | (7.28) | (5.90) | 4.11 | .52 | 3.91 |
Distributions from net investment income | (.05) | (.19) | (.33) | (.27) | (.38) | (.61) |
Distributions from net realized gain | (.01) | (.03) | (3.81) | (6.08) | (4.40) | (.34) |
Total distributions | (.06) | (.22) | (4.14) | (6.35) | (4.78) | (.95) |
Net asset value, end of period | $ 15.50 | $ 14.38 | $ 21.88 | $ 31.92 | $ 34.16 | $ 38.42 |
Total Return B, C | 8.23% | (33.32)% | (20.91)% | 14.28% | 1.22% | 11.15% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | .76% A | .78% | .68% | .68% | .69% | .69% |
Expenses net of fee waivers, if any | .76% A | .78% | .68% | .68% | .69% | .69% |
Expenses net of all reductions | .75% A | .78% | .67% | .67% | .65% | .68% |
Net investment income (loss) | .65% A | 1.07% | 1.29% | .84% | .94% | 1.63% G |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 5,932 | $ 5,993 | $ 12,552 | $ 22,693 | $ 28,861 | $ 31,789 |
Portfolio turnover rate F | 86% A | 122% | 52% | 52% | 120% | 31% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a special dividend which amounted to $.13 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.27%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended January 31, 2010 | Years ended July 31, | |
(Unaudited) | 2009 | 2008 G | |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 14.38 | $ 21.88 | $ 25.34 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | .07 | .16 | .09 |
Net realized and unrealized gain (loss) | 1.12 | (7.40) | (3.45) |
Total from investment operations | 1.19 | (7.24) | (3.36) |
Distributions from net investment income | (.07) | (.23) | (.10) |
Distributions from net realized gain | (.01) | (.03) | - |
Total distributions | (.08) | (.26) | (.10) |
Net asset value, end of period | $ 15.49 | $ 14.38 | $ 21.88 |
Total Return B, C | 8.28% | (33.12)% | (13.22)% |
Ratios to Average Net Assets E, H |
|
|
|
Expenses before reductions | .55% A | .56% | .55% A |
Expenses net of fee waivers, if any | .55% A | .56% | .55% A |
Expenses net of all reductions | .54% A | .55% | .55% A |
Net investment income (loss) | .87% A | 1.29% | 1.73% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 259,258 | $ 349,324 | $ 87 |
Portfolio turnover rate F | 86% A | 122% | 52% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Growth & Income Portfolio (the Fund) is a fund of Fidelity Securities Fund (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 Growth & Income and Class K 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 commencement of Class K, the Fund began offering conversion privileges between Growth & Income and Class K to eligible shareholders of Growth & Income. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as level 2 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, foreign currency transactions, market discount, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 945,571 |
Gross unrealized depreciation | (417,399) |
Net unrealized appreciation (depreciation) | $ 528,172 |
|
|
Tax cost | $ 5,690,132 |
Semiannual Report
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $2,721,610 and $3,303,683, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .46% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Growth & Income. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Growth & Income | $ 8,432 | .27 |
Class K | 86 | .06 |
| $ 8,518 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees - continued
the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $23 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily | Weighted | Interest |
Borrower | $ 16,141 | .40% | $ 3 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $13 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are
Semiannual Report
8. Security Lending - continued
disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $107.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $255 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Growth & Income | $ 21,612 | $ 92,019 |
Class K | 1,352 | 3,067 |
Total | $ 22,964 | $ 95,086 |
From net realized gain |
|
|
Growth & Income | $ 3,284 | $ 16,537 |
Class K | 197 | 29 |
Total | $ 3,481 | $ 16,566 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Growth & Income |
|
|
|
|
Shares sold | 10,199 | 34,825 | $ 158,316 | $ 492,141 |
Conversion to Class K | (593) | (26,363) | (8,751) | (389,259) |
Reinvestment of distributions | 1,574 | 6,899 | 24,066 | 105,157 |
Shares redeemed | (45,072) | (172,362) | (702,756) | (2,530,518) |
Net increase (decrease) | (33,892) | (157,001) | $ (529,125) | $ (2,322,479) |
Class K |
|
|
|
|
Shares sold | 2,972 | 3,336 | $ 46,741 | $ 44,336 |
Conversion from Growth & Income | 593 | 26,372 | 8,751 | 389,259 |
Reinvestment of distributions | 102 | 232 | 1,549 | 3,096 |
Shares redeemed | (11,228) | (5,644) | (176,769) | (67,387) |
Net increase (decrease) | (7,561) | 24,296 | $ (119,728) | $ 369,304 |
A Conversion transactions for Class K and Growth & Income are for the period August 1, 2009 through August 31, 2009.
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.
By Phone
Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Workplace
Investing
1-800-835-5092
By PC
Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.401k.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research
(U.K.) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisors
FIL Investment Advisors (U.K.) Ltd.
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
GAI-K-USAN-0310 1.863232.101
Fidelity®
International Real Estate
Fund
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.
Semiannual Report
Shareholder Expense Example - continued
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 | Beginning | Ending | Expenses Paid |
Class A | 1.46% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,011.20 | $ 7.40 |
Hypothetical A |
| $ 1,000.00 | $ 1,017.85 | $ 7.43 |
Class T | 1.72% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,009.40 | $ 8.71 |
Hypothetical A |
| $ 1,000.00 | $ 1,016.53 | $ 8.74 |
Class B | 2.21% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,008.20 | $ 11.19 |
Hypothetical A |
| $ 1,000.00 | $ 1,014.06 | $ 11.22 |
Class C | 2.21% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,007.10 | $ 11.18 |
Hypothetical A |
| $ 1,000.00 | $ 1,014.06 | $ 11.22 |
International Real Estate | 1.21% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,013.40 | $ 6.14 |
Hypothetical A |
| $ 1,000.00 | $ 1,019.11 | $ 6.16 |
Institutional Class | 1.21% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,012.20 | $ 6.14 |
Hypothetical A |
| $ 1,000.00 | $ 1,019.11 | $ 6.16 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Sun Hung Kai Properties Ltd. | 7.9 | 10.7 |
Westfield Group unit | 7.9 | 6.5 |
Unibail-Rodamco | 6.5 | 4.5 |
Mitsui Fudosan Co. Ltd. | 4.6 | 6.2 |
Mitsubishi Estate Co. Ltd. | 4.4 | 4.7 |
Henderson Land Development Co. Ltd. | 3.5 | 4.0 |
British Land Co. PLC | 3.4 | 3.7 |
Hongkong Land Holdings Ltd. | 3.2 | 3.4 |
China Overseas Land & Investment Ltd. | 3.0 | 4.6 |
Hang Lung Properties Ltd. | 3.0 | 3.7 |
| 47.4 | |
Top Five Countries as of January 31, 2010 | ||
(excluding cash equivalents) | % of fund's | % of fund's net assets |
Hong Kong | 26.4 | 30.5 |
Japan | 17.7 | 21.2 |
Australia | 16.1 | 11.4 |
United Kingdom | 9.8 | 9.9 |
France | 9.5 | 6.1 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Top Five REIT Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
REITs - Management/Investment | 27.3 | 18.7 |
REITs - Office Buildings | 10.4 | 9.1 |
REITs - Industrial Buildings | 5.6 | 4.9 |
REITs - Shopping Centers | 4.6 | 5.8 |
REITs - Apartments | 0.0 | 0.1 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks and |
| ![]() | Stocks and |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 95.9% |
| ** Foreign investments | 96.6% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.5% | |||
Shares | Value | ||
Australia - 16.1% | |||
CFS Retail Property Trust | 1,926,244 | $ 3,185,136 | |
Charter Hall Group unit | 1,680,000 | 980,456 | |
DEXUS Property Group unit | 6,581,610 | 4,830,425 | |
Goodman Group unit | 7,436,450 | 3,846,773 | |
ING Industrial Fund | 3,398,481 | 1,352,298 | |
Macquarie Office Trust | 6,640,000 | 1,732,069 | |
Stockland Corp. Ltd. unit | 2,580,748 | 8,511,959 | |
The GPT Group unit | 7,250,000 | 3,654,163 | |
Westfield Group unit | 2,414,032 | 26,981,443 | |
TOTAL AUSTRALIA | 55,074,722 | ||
Austria - 0.5% | |||
CA Immobilien Anlagen AG (a) | 154,983 | 1,635,352 | |
Bailiwick of Jersey - 0.4% | |||
LXB Retail Properties PLC | 967,400 | 1,489,451 | |
Cayman Islands - 1.9% | |||
Agile Property Holdings Ltd. | 1,960,000 | 2,476,523 | |
IFM Investments Ltd. ADR (a) | 25,200 | 180,936 | |
Shimao Property Holdings Ltd. | 2,535,000 | 3,918,109 | |
TOTAL CAYMAN ISLANDS | 6,575,568 | ||
China - 1.8% | |||
China Resources Land Ltd. | 3,473,000 | 6,298,320 | |
Finland - 1.0% | |||
Citycon Oyj | 873,403 | 3,481,973 | |
France - 9.5% | |||
Fonciere Des Regions | 40,100 | 3,984,911 | |
Fonciere Des Regions warrants 12/31/10 (a) | 40,100 | 30,916 | |
Klepierre SA | 120,000 | 4,470,163 | |
Societe de la Tour Eiffel | 22,900 | 1,613,563 | |
Unibail-Rodamco | 103,567 | 22,440,312 | |
TOTAL FRANCE | 32,539,865 | ||
Germany - 0.9% | |||
alstria office REIT-AG | 127,206 | 1,428,187 | |
Deutsche Wohnen AG (a) | 153,100 | 1,551,549 | |
TOTAL GERMANY | 2,979,736 | ||
Greece - 0.1% | |||
Babis Vovos International Technical SA (a) | 86,000 | 466,080 | |
Hong Kong - 26.4% | |||
China Overseas Land & Investment Ltd. | 5,731,680 | 10,276,339 | |
Common Stocks - continued | |||
Shares | Value | ||
Hong Kong - continued | |||
Hang Lung Properties Ltd. | 2,964,000 | $ 10,116,758 | |
Henderson Land Development Co. Ltd. | 1,920,000 | 12,154,638 | |
Hongkong Land Holdings Ltd. | 2,375,000 | 11,138,750 | |
Link (REIT) | 3,080,915 | 7,428,529 | |
New World Development Co. Ltd. | 2,849,000 | 4,696,991 | |
Sun Hung Kai Properties Ltd. | 2,102,000 | 27,155,070 | |
Wharf Holdings Ltd. | 1,502,000 | 7,467,488 | |
TOTAL HONG KONG | 90,434,563 | ||
Japan - 17.7% | |||
Japan Prime Realty Investment Corp. | 603 | 1,158,973 | |
Japan Real Estate Investment Corp. | 392 | 3,287,294 | |
Japan Retail Fund Investment Corp. | 524 | 2,438,019 | |
Kenedix Realty Investment Corp. | 730 | 2,070,234 | |
Kenedix, Inc. (a) | 1,428 | 442,463 | |
Mitsubishi Estate Co. Ltd. | 921,000 | 14,977,600 | |
Mitsui Fudosan Co. Ltd. | 920,000 | 15,644,178 | |
Nippon Building Fund, Inc. | 518 | 4,579,196 | |
Nomura Real Estate Office Fund, Inc. | 539 | 3,116,849 | |
ORIX JREIT, Inc. | 626 | 3,085,964 | |
Sumitomo Realty & Development Co. Ltd. | 561,000 | 10,011,864 | |
TOTAL JAPAN | 60,812,634 | ||
Netherlands - 2.2% | |||
Corio NV | 109,111 | 6,697,050 | |
Eurocommercial (Certificaten Van Aandelen) unit | 22,957 | 895,999 | |
TOTAL NETHERLANDS | 7,593,049 | ||
Norway - 0.6% | |||
Norwegian Property ASA (a) | 966,000 | 2,181,953 | |
Singapore - 5.5% | |||
Allgreen Properties Ltd. | 2,270,000 | 1,888,640 | |
Ascendas Real Estate Investment Trust (A-REIT) | 2,016,193 | 2,781,450 | |
CapitaCommercial Trust (REIT) | 6,582,000 | 4,961,365 | |
CapitaLand Ltd. | 2,018,900 | 5,541,656 | |
CapitaMall Trust | 1,115,000 | 1,339,982 | |
Keppel Land Ltd. | 1,020,000 | 2,379,093 | |
TOTAL SINGAPORE | 18,892,186 | ||
Sweden - 1.1% | |||
Castellum AB | 409,000 | 3,694,524 | |
Common Stocks - continued | |||
Shares | Value | ||
United Kingdom - 9.8% | |||
Big Yellow Group PLC (a)(c) | 222,800 | $ 1,115,004 | |
British Land Co. PLC | 1,694,428 | 11,757,170 | |
Great Portland Estates PLC | 897,454 | 4,008,736 | |
Hammerson PLC | 534,799 | 3,213,039 | |
Land Securities Group PLC | 510,902 | 5,185,441 | |
Segro PLC | 994,200 | 4,938,151 | |
Unite Group PLC (a) | 752,650 | 3,447,752 | |
TOTAL UNITED KINGDOM | 33,665,293 | ||
TOTAL COMMON STOCKS (Cost $384,899,846) | 327,815,269 | ||
Investment Companies - 0.4% | |||
|
|
|
|
Luxembourg - 0.4% | |||
ProLogis European Properties Fund (a) | 185,200 | 1,190,048 | |
Money Market Funds - 4.1% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.17% (d) | 13,618,637 | 13,618,637 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(d) | 590,150 | 590,150 | |
TOTAL MONEY MARKET FUNDS (Cost $14,208,787) | 14,208,787 | ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $400,220,986) | 343,214,104 | ||
NET OTHER ASSETS - 0.0% | (111,780) | ||
NET ASSETS - 100% | $ 343,102,324 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
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 | $ 9,254 |
Fidelity Securities Lending Cash Central Fund | 29,725 |
Total | $ 38,979 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Hong Kong | $ 90,434,563 | $ 90,434,563 | $ - | $ - |
Japan | 60,812,634 | 60,812,634 | - | - |
Australia | 55,074,722 | 55,074,722 | - | - |
United Kingdom | 33,665,293 | - | 33,665,293 | - |
France | 32,539,865 | - | 32,539,865 | - |
Singapore | 18,892,186 | 18,892,186 | - | - |
Netherlands | 7,593,049 | - | 7,593,049 | - |
Cayman Islands | 6,575,568 | 6,575,568 | - | - |
China | 6,298,320 | 6,298,320 | - | - |
Other | 15,929,069 | - | 15,929,069 | - |
Investment Companies | 1,190,048 | - | 1,190,048 | - |
Money Market Funds | 14,208,787 | 14,208,787 | - | - |
Total Investments in Securities: | $ 343,214,104 | $ 252,296,780 | $ 90,917,324 | $ - |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $159,443,097 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $142,053,103 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $541,607) - See accompanying schedule: Unaffiliated issuers (cost $386,012,199) | $ 329,005,317 |
|
Fidelity Central Funds (cost $14,208,787) | 14,208,787 |
|
Total Investments (cost $400,220,986) |
| $ 343,214,104 |
Cash | 12,356 | |
Foreign currency held at value (cost $2,461) | 2,389 | |
Receivable for investments sold | 216,904 | |
Receivable for fund shares sold | 266,644 | |
Dividends receivable | 1,261,338 | |
Distributions receivable from Fidelity Central Funds | 2,511 | |
Prepaid expenses | 1,406 | |
Other receivables | 302,950 | |
Total assets | 345,280,602 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 518,170 | |
Payable for fund shares redeemed | 639,379 | |
Accrued management fee | 215,390 | |
Distribution fees payable | 5,635 | |
Other affiliated payables | 122,277 | |
Other payables and accrued expenses | 87,277 | |
Collateral on securities loaned, at value | 590,150 | |
Total liabilities | 2,178,278 | |
|
|
|
Net Assets | $ 343,102,324 | |
Net Assets consist of: |
| |
Paid in capital | $ 696,668,528 | |
Distributions in excess of net investment income | (203,323) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (296,322,091) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (57,040,790) | |
Net Assets | $ 343,102,324 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 8.15 | |
|
|
|
Maximum offering price per share (100/94.25 of $8.15) | $ 8.65 | |
Class T: | $ 8.11 | |
|
|
|
Maximum offering price per share (100/96.50 of $8.11) | $ 8.40 | |
Class B: | $ 8.05 | |
|
|
|
Class C: | $ 8.03 | |
|
|
|
International Real Estate: | $ 8.21 | |
|
|
|
Institutional Class: | $ 8.19 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 5,429,061 |
Income from Fidelity Central Funds |
| 38,979 |
|
| 5,468,040 |
Less foreign taxes withheld |
| (218,746) |
Total income |
| 5,249,294 |
|
|
|
Expenses | ||
Management fee | $ 1,324,496 | |
Transfer agent fees | 647,156 | |
Distribution fees | 32,418 | |
Accounting and security lending fees | 97,947 | |
Custodian fees and expenses | 102,364 | |
Independent trustees' compensation | 1,104 | |
Registration fees | 41,823 | |
Audit | 39,337 | |
Legal | 867 | |
Miscellaneous | 3,492 | |
Total expenses before reductions | 2,291,004 | |
Expense reductions | (74,191) | 2,216,813 |
Net investment income (loss) | 3,032,481 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers (net of foreign taxes of $36,571) | 18,461,359 | |
Foreign currency transactions | 43,336 | |
Total net realized gain (loss) |
| 18,504,695 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $15,863) | (16,289,857) | |
Assets and liabilities in foreign currencies | (40,613) | |
Total change in net unrealized appreciation (depreciation) |
| (16,330,470) |
Net gain (loss) | 2,174,225 | |
Net increase (decrease) in net assets resulting from operations | $ 5,206,706 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 3,032,481 | $ 9,003,508 |
Net realized gain (loss) | 18,504,695 | (205,492,245) |
Change in net unrealized appreciation (depreciation) | (16,330,470) | 43,065,853 |
Net increase (decrease) in net assets resulting | 5,206,706 | (153,422,884) |
Distributions to shareholders from net investment income | (3,235,804) | - |
Distributions to shareholders from net realized gain | (5,017,969) | - |
Total distributions | (8,253,773) | - |
Share transactions - net increase (decrease) | (3,559,987) | (95,264,955) |
Redemption fees | 56,260 | 117,919 |
Total increase (decrease) in net assets | (6,550,794) | (248,569,920) |
|
|
|
Net Assets | ||
Beginning of period | 349,653,118 | 598,223,038 |
End of period (including distributions in excess of net investment income of $203,323 and $0, respectively) | $ 343,102,324 | $ 349,653,118 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||
(Unaudited) | 2009 | 2008 | 2007 H | |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 8.24 | $ 10.63 | $ 15.71 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .06 | .18 | .20 | .11 |
Net realized and unrealized gain (loss) | .04 | (2.57) | (3.48) | (1.87) |
Total from investment operations | .10 | (2.39) | (3.28) | (1.76) |
Distributions from net investment income | (.07) | - | (.31) | - |
Distributions from net realized gain | (.12) | - | (1.50) | - |
Total distributions | (.19) | - | (1.81) | - |
Redemption fees added to paid in capital E | - J | - J | .01 | .01 |
Net asset value, end of period | $ 8.15 | $ 8.24 | $ 10.63 | $ 15.71 |
Total Return B,C,D | 1.12% | (22.48)% | (23.20)% | (10.02)% |
Ratios to Average Net Assets F,I |
|
|
|
|
Expenses before reductions | 1.46% A | 1.45% | 1.38% | 1.37% A |
Expenses net of fee waivers, if any | 1.46% A | 1.45% | 1.38% | 1.37% A |
Expenses net of all reductions | 1.42% A | 1.42% | 1.35% | 1.26% A |
Net investment income (loss) | 1.39% A | 2.55% | 1.58% | 2.08% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 7,335 | $ 6,745 | $ 9,976 | $ 5,087 |
Portfolio turnover rate G | 58% A | 55% | 63% | 144% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||
(Unaudited) | 2009 | 2008 | 2007 H | |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 8.21 | $ 10.62 | $ 15.70 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .05 | .17 | .17 | .10 |
Net realized and unrealized gain (loss) | .03 | (2.58) | (3.48) | (1.87) |
Total from investment operations | .08 | (2.41) | (3.31) | (1.77) |
Distributions from net investment income | (.06) | - | (.28) | - |
Distributions from net realized gain | (.12) | - | (1.50) | - |
Total distributions | (.18) | - | (1.78) | - |
Redemption fees added to paid in capital E | - J | - J | .01 | .01 |
Net asset value, end of period | $ 8.11 | $ 8.21 | $ 10.62 | $ 15.70 |
Total Return B,C,D | .94% | (22.69)% | (23.39)% | (10.08)% |
Ratios to Average Net Assets F,I |
|
|
|
|
Expenses before reductions | 1.72% A | 1.71% | 1.64% | 1.61% A |
Expenses net of fee waivers, if any | 1.72% A | 1.71% | 1.64% | 1.61% A |
Expenses net of all reductions | 1.68% A | 1.68% | 1.60% | 1.51% A |
Net investment income (loss) | 1.13% A | 2.29% | 1.32% | 1.90% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,594 | $ 2,080 | $ 7,566 | $ 2,398 |
Portfolio turnover rate G | 58% A | 55% | 63% | 144% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | ||
(Unaudited) | 2009 | 2008 | 2007 H | |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 8.14 | $ 10.58 | $ 15.67 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .03 | .13 | .11 | .07 |
Net realized and unrealized gain (loss) | .04 | (2.57) | (3.48) | (1.87) |
Total from investment operations | .07 | (2.44) | (3.37) | (1.80) |
Distributions from net investment income | (.04) | - | (.23) | - |
Distributions from net realized gain | (.12) | - | (1.50) | - |
Total distributions | (.16) | - | (1.73) | - |
Redemption fees added to paid in capital E | - J | - J | .01 | .01 |
Net asset value, end of period | $ 8.05 | $ 8.14 | $ 10.58 | $ 15.67 |
Total Return B,C,D | .82% | (23.06)% | (23.80)% | (10.25)% |
Ratios to Average Net Assets F,I |
|
|
|
|
Expenses before reductions | 2.21% A | 2.19% | 2.14% | 2.11% A |
Expenses net of fee waivers, if any | 2.21% A | 2.19% | 2.14% | 2.11% A |
Expenses net of all reductions | 2.17% A | 2.17% | 2.11% | 2.01% A |
Net investment income (loss) | .64% A | 1.81% | .82% | 1.38% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 630 | $ 606 | $ 930 | $ 1,158 |
Portfolio turnover rate G | 58% A | 55% | 63% | 144% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||
(Unaudited) | 2009 | 2008 | 2007 H | |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 8.13 | $ 10.57 | $ 15.67 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .03 | .13 | .11 | .07 |
Net realized and unrealized gain (loss) | .03 | (2.57) | (3.48) | (1.87) |
Total from investment operations | .06 | (2.44) | (3.37) | (1.80) |
Distributions from net investment income | (.04) | - | (.24) | - |
Distributions from net realized gain | (.12) | - | (1.50) | - |
Total distributions | (.16) | - | (1.74) | - |
Redemption fees added to paid in capital E | - J | - J | .01 | .01 |
Net asset value, end of period | $ 8.03 | $ 8.13 | $ 10.57 | $ 15.67 |
Total Return B,C,D | .71% | (23.08)% | (23.78)% | (10.25)% |
Ratios to Average Net Assets F,I |
|
|
|
|
Expenses before reductions | 2.21% A | 2.19% | 2.14% | 2.10% A |
Expenses net of fee waivers, if any | 2.21% A | 2.19% | 2.14% | 2.10% A |
Expenses net of all reductions | 2.17% A | 2.17% | 2.11% | 2.00% A |
Net investment income (loss) | .64% A | 1.81% | .82% | 1.35% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,598 | $ 2,496 | $ 3,477 | $ 2,629 |
Portfolio turnover rate G | 58% A | 55% | 63% | 144% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - International Real Estate
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 8.29 | $ 10.68 | $ 15.73 | $ 14.69 | $ 12.09 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .07 | .20 | .25 | .31 | .30 | .23 |
Net realized and unrealized gain (loss) | .05 | (2.59) | (3.50) | 2.35 | 2.93 | 1.91 |
Total from investment operations | .12 | (2.39) | (3.25) | 2.66 | 3.23 | 2.14 |
Distributions from net investment income | (.08) | - | (.31) | (.22) | (.24) | (.03) |
Distributions from net realized gain | (.12) | - | (1.50) | (1.42) | (.40) | (.03) |
Total distributions | (.20) | - | (1.81) | (1.64) | (.64) | (.06) |
Redemption fees added to paid in capital D | - I | - I | .01 | .02 | .01 | .01 |
Net asset value, end of period | $ 8.21 | $ 8.29 | $ 10.68 | $ 15.73 | $ 14.69 | $ 12.09 |
Total Return B,C | 1.34% | (22.38)% | (22.97)% | 19.01% | 27.85% | 21.53% |
Ratios to Average Net Assets E,H |
|
|
|
|
| |
Expenses before reductions | 1.21%A | 1.19% | 1.11% | 1.07% | 1.12% | 1.29%A |
Expenses net of fee waivers, if any | 1.21%A | 1.19% | 1.10% | 1.06% | 1.12% | 1.29%A |
Expenses net of all reductions | 1.17%A | 1.16% | 1.07% | .96% | .91% | 1.27%A |
Net investment income (loss) | 1.64%A | 2.81% | 1.86% | 1.86% | 2.23% | 2.21%A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 328,330 | $ 336,126 | $ 572,985 | $ 1,032,138 | $ 447,854 | $ 160,980 |
Portfolio turnover rate F | 58%A | 55% | 63% | 144% | 234% | 36%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period September 8, 2004 (commencement of operations) to July 31, 2005.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||
(Unaudited) | 2009 | 2008 | 2007 G | |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 8.28 | $ 10.66 | $ 15.73 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) D | .07 | .20 | .24 | .12 |
Net realized and unrealized gain (loss) | .04 | (2.58) | (3.49) | (1.86) |
Total from investment operations | .11 | (2.38) | (3.25) | (1.74) |
Distributions from net investment income | (.08) | - | (.33) | - |
Distributions from net realized gain | (.12) | - | (1.50) | - |
Total distributions | (.20) | - | (1.83) | - |
Redemption fees added to paid in capital D | - I | - I | .01 | .01 |
Net asset value, end of period | $ 8.19 | $ 8.28 | $ 10.66 | $ 15.73 |
Total Return B,C | 1.22% | (22.33)% | (22.98)% | (9.91)% |
Ratios to Average Net Assets E,H |
|
|
|
|
Expenses before reductions | 1.21% A | 1.19% | 1.13% | 1.08% A |
Expenses net of fee waivers, if any | 1.21% A | 1.19% | 1.13% | 1.08% A |
Expenses net of all reductions | 1.17% A | 1.17% | 1.10% | .97% A |
Net investment income (loss) | 1.65% A | 2.81% | 1.83% | 2.27% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,615 | $ 1,600 | $ 3,289 | $ 2,477 |
Portfolio turnover rate F | 58% A | 55% | 63% | 144% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
1. Organization.
Fidelity International Real Estate Fund (the Fund) is a non-diversified fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, International Real Estate and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds ,including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 15,514,009 |
Gross unrealized depreciation | (74,275,863) |
Net unrealized appreciation (depreciation) | $ (58,761,854) |
|
|
Tax cost | $ 401,975,958 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $102,854,563 and $113,800,715, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .71% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution | Service | Paid to | Retained |
Class A | -% | .25% | $ 9,333 | $ 19 |
Class T | .25% | .25% | 6,048 | - |
Class B | .75% | .25% | 3,332 | 2,499 |
Class C | .75% | .25% | 13,705 | 2,118 |
|
|
| $ 32,418 | $ 4,636 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 3,499 |
Class T | 532 |
Class B* | 1,095 |
Class C* | 14 |
| $ 5,140 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Class A | $ 12,852 | .34 |
Class T | 4,327 | .36 |
Class B | 1,154 | .35 |
Class C | 4,749 | .35 |
International Real Estate | 621,155 | .35 |
Institutional Class | 2,919 | .34 |
| $ 647,156 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $27 for the period.
Semiannual Report
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $727 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $29,725.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $74,138 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $53.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 58,598 | $ - |
Class T | 19,755 | - |
Class B | 3,225 | - |
Class C | 14,423 | - |
International Real Estate | 3,124,785 | - |
Institutional Class | 15,018 | - |
Total | $ 3,235,804 | $ - |
From net realized gain |
|
|
Class A | $ 101,910 | $ - |
Class T | 37,040 | - |
Class B | 9,214 | - |
Class C | 39,337 | - |
International Real Estate | 4,807,363 | - |
Institutional Class | 23,105 | - |
Total | $ 5,017,969 | $ - |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 216,332 | 276,074 | $ 1,875,950 | $ 2,073,370 |
Reinvestment of distributions | 15,947 | - | 134,590 | - |
Shares redeemed | (151,282) | (395,339) | (1,317,902) | (2,671,924) |
Net increase (decrease) | 80,997 | (119,265) | $ 692,638 | $ (598,554) |
Class T |
|
|
|
|
Shares sold | 86,341 | 127,919 | $ 760,075 | $ 986,052 |
Reinvestment of distributions | 6,259 | - | 52,641 | - |
Shares redeemed | (26,443) | (586,866) | (228,003) | (4,132,628) |
Net increase (decrease) | 66,157 | (458,947) | $ 584,713 | $ (3,146,576) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class B |
|
|
|
|
Shares sold | 11,790 | 23,179 | $ 100,980 | $ 177,395 |
Reinvestment of distributions | 1,355 | - | 11,297 | - |
Shares redeemed | (9,315) | (36,555) | (80,290) | (251,823) |
Net increase (decrease) | 3,830 | (13,376) | $ 31,987 | $ (74,428) |
Class C |
|
|
|
|
Shares sold | 47,069 | 103,043 | $ 403,399 | $ 772,724 |
Reinvestment of distributions | 5,842 | - | 48,663 | - |
Shares redeemed | (36,632) | (124,838) | (315,695) | (872,457) |
Net increase (decrease) | 16,279 | (21,795) | $ 136,367 | $ (99,733) |
International Real Estate |
|
|
|
|
Shares sold | 5,870,073 | 11,251,723 | $ 51,484,466 | $ 83,151,001 |
Reinvestment of distributions | 875,458 | - | 7,441,392 | - |
Shares redeemed | (7,283,331) | (24,377,998) | (63,963,037) | (173,652,133) |
Net increase (decrease) | (537,800) | (13,126,275) | $ (5,037,179) | $ (90,501,132) |
Institutional Class |
|
|
|
|
Shares sold | 25,540 | 83,584 | $ 223,977 | $ 621,361 |
Reinvestment of distributions | 4,247 | - | 36,016 | - |
Shares redeemed | (25,932) | (198,948) | (228,506) | (1,465,893) |
Net increase (decrease) | 3,855 | (115,364) | $ 31,487 | $ (844,532) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research
(U.K.) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisers
FIL Investment Advisers (U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) 1-800-544-5555
Automated line for quickest service
IRE-USAN-0310 1.801329.106
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor
International Real Estate
Fund - Class A, Class T,
Class B, and Class C
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Class A, Class T, Class B,
and Class C are classes
of Fidelity® International
Real Estate Fund
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.
Semiannual Report
Shareholder Expense Example - continued
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 | Beginning | Ending | Expenses Paid |
Class A | 1.46% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,011.20 | $ 7.40 |
Hypothetical A |
| $ 1,000.00 | $ 1,017.85 | $ 7.43 |
Class T | 1.72% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,009.40 | $ 8.71 |
Hypothetical A |
| $ 1,000.00 | $ 1,016.53 | $ 8.74 |
Class B | 2.21% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,008.20 | $ 11.19 |
Hypothetical A |
| $ 1,000.00 | $ 1,014.06 | $ 11.22 |
Class C | 2.21% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,007.10 | $ 11.18 |
Hypothetical A |
| $ 1,000.00 | $ 1,014.06 | $ 11.22 |
International Real Estate | 1.21% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,013.40 | $ 6.14 |
Hypothetical A |
| $ 1,000.00 | $ 1,019.11 | $ 6.16 |
Institutional Class | 1.21% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,012.20 | $ 6.14 |
Hypothetical A |
| $ 1,000.00 | $ 1,019.11 | $ 6.16 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Sun Hung Kai Properties Ltd. | 7.9 | 10.7 |
Westfield Group unit | 7.9 | 6.5 |
Unibail-Rodamco | 6.5 | 4.5 |
Mitsui Fudosan Co. Ltd. | 4.6 | 6.2 |
Mitsubishi Estate Co. Ltd. | 4.4 | 4.7 |
Henderson Land Development Co. Ltd. | 3.5 | 4.0 |
British Land Co. PLC | 3.4 | 3.7 |
Hongkong Land Holdings Ltd. | 3.2 | 3.4 |
China Overseas Land & Investment Ltd. | 3.0 | 4.6 |
Hang Lung Properties Ltd. | 3.0 | 3.7 |
| 47.4 | |
Top Five Countries as of January 31, 2010 | ||
(excluding cash equivalents) | % of fund's | % of fund's net assets |
Hong Kong | 26.4 | 30.5 |
Japan | 17.7 | 21.2 |
Australia | 16.1 | 11.4 |
United Kingdom | 9.8 | 9.9 |
France | 9.5 | 6.1 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Top Five REIT Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
REITs - Management/Investment | 27.3 | 18.7 |
REITs - Office Buildings | 10.4 | 9.1 |
REITs - Industrial Buildings | 5.6 | 4.9 |
REITs - Shopping Centers | 4.6 | 5.8 |
REITs - Apartments | 0.0 | 0.1 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks and |
| ![]() | Stocks and |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 95.9% |
| ** Foreign investments | 96.6% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.5% | |||
Shares | Value | ||
Australia - 16.1% | |||
CFS Retail Property Trust | 1,926,244 | $ 3,185,136 | |
Charter Hall Group unit | 1,680,000 | 980,456 | |
DEXUS Property Group unit | 6,581,610 | 4,830,425 | |
Goodman Group unit | 7,436,450 | 3,846,773 | |
ING Industrial Fund | 3,398,481 | 1,352,298 | |
Macquarie Office Trust | 6,640,000 | 1,732,069 | |
Stockland Corp. Ltd. unit | 2,580,748 | 8,511,959 | |
The GPT Group unit | 7,250,000 | 3,654,163 | |
Westfield Group unit | 2,414,032 | 26,981,443 | |
TOTAL AUSTRALIA | 55,074,722 | ||
Austria - 0.5% | |||
CA Immobilien Anlagen AG (a) | 154,983 | 1,635,352 | |
Bailiwick of Jersey - 0.4% | |||
LXB Retail Properties PLC | 967,400 | 1,489,451 | |
Cayman Islands - 1.9% | |||
Agile Property Holdings Ltd. | 1,960,000 | 2,476,523 | |
IFM Investments Ltd. ADR (a) | 25,200 | 180,936 | |
Shimao Property Holdings Ltd. | 2,535,000 | 3,918,109 | |
TOTAL CAYMAN ISLANDS | 6,575,568 | ||
China - 1.8% | |||
China Resources Land Ltd. | 3,473,000 | 6,298,320 | |
Finland - 1.0% | |||
Citycon Oyj | 873,403 | 3,481,973 | |
France - 9.5% | |||
Fonciere Des Regions | 40,100 | 3,984,911 | |
Fonciere Des Regions warrants 12/31/10 (a) | 40,100 | 30,916 | |
Klepierre SA | 120,000 | 4,470,163 | |
Societe de la Tour Eiffel | 22,900 | 1,613,563 | |
Unibail-Rodamco | 103,567 | 22,440,312 | |
TOTAL FRANCE | 32,539,865 | ||
Germany - 0.9% | |||
alstria office REIT-AG | 127,206 | 1,428,187 | |
Deutsche Wohnen AG (a) | 153,100 | 1,551,549 | |
TOTAL GERMANY | 2,979,736 | ||
Greece - 0.1% | |||
Babis Vovos International Technical SA (a) | 86,000 | 466,080 | |
Hong Kong - 26.4% | |||
China Overseas Land & Investment Ltd. | 5,731,680 | 10,276,339 | |
Common Stocks - continued | |||
Shares | Value | ||
Hong Kong - continued | |||
Hang Lung Properties Ltd. | 2,964,000 | $ 10,116,758 | |
Henderson Land Development Co. Ltd. | 1,920,000 | 12,154,638 | |
Hongkong Land Holdings Ltd. | 2,375,000 | 11,138,750 | |
Link (REIT) | 3,080,915 | 7,428,529 | |
New World Development Co. Ltd. | 2,849,000 | 4,696,991 | |
Sun Hung Kai Properties Ltd. | 2,102,000 | 27,155,070 | |
Wharf Holdings Ltd. | 1,502,000 | 7,467,488 | |
TOTAL HONG KONG | 90,434,563 | ||
Japan - 17.7% | |||
Japan Prime Realty Investment Corp. | 603 | 1,158,973 | |
Japan Real Estate Investment Corp. | 392 | 3,287,294 | |
Japan Retail Fund Investment Corp. | 524 | 2,438,019 | |
Kenedix Realty Investment Corp. | 730 | 2,070,234 | |
Kenedix, Inc. (a) | 1,428 | 442,463 | |
Mitsubishi Estate Co. Ltd. | 921,000 | 14,977,600 | |
Mitsui Fudosan Co. Ltd. | 920,000 | 15,644,178 | |
Nippon Building Fund, Inc. | 518 | 4,579,196 | |
Nomura Real Estate Office Fund, Inc. | 539 | 3,116,849 | |
ORIX JREIT, Inc. | 626 | 3,085,964 | |
Sumitomo Realty & Development Co. Ltd. | 561,000 | 10,011,864 | |
TOTAL JAPAN | 60,812,634 | ||
Netherlands - 2.2% | |||
Corio NV | 109,111 | 6,697,050 | |
Eurocommercial (Certificaten Van Aandelen) unit | 22,957 | 895,999 | |
TOTAL NETHERLANDS | 7,593,049 | ||
Norway - 0.6% | |||
Norwegian Property ASA (a) | 966,000 | 2,181,953 | |
Singapore - 5.5% | |||
Allgreen Properties Ltd. | 2,270,000 | 1,888,640 | |
Ascendas Real Estate Investment Trust (A-REIT) | 2,016,193 | 2,781,450 | |
CapitaCommercial Trust (REIT) | 6,582,000 | 4,961,365 | |
CapitaLand Ltd. | 2,018,900 | 5,541,656 | |
CapitaMall Trust | 1,115,000 | 1,339,982 | |
Keppel Land Ltd. | 1,020,000 | 2,379,093 | |
TOTAL SINGAPORE | 18,892,186 | ||
Sweden - 1.1% | |||
Castellum AB | 409,000 | 3,694,524 | |
Common Stocks - continued | |||
Shares | Value | ||
United Kingdom - 9.8% | |||
Big Yellow Group PLC (a)(c) | 222,800 | $ 1,115,004 | |
British Land Co. PLC | 1,694,428 | 11,757,170 | |
Great Portland Estates PLC | 897,454 | 4,008,736 | |
Hammerson PLC | 534,799 | 3,213,039 | |
Land Securities Group PLC | 510,902 | 5,185,441 | |
Segro PLC | 994,200 | 4,938,151 | |
Unite Group PLC (a) | 752,650 | 3,447,752 | |
TOTAL UNITED KINGDOM | 33,665,293 | ||
TOTAL COMMON STOCKS (Cost $384,899,846) | 327,815,269 | ||
Investment Companies - 0.4% | |||
|
|
|
|
Luxembourg - 0.4% | |||
ProLogis European Properties Fund (a) | 185,200 | 1,190,048 | |
Money Market Funds - 4.1% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.17% (d) | 13,618,637 | 13,618,637 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(d) | 590,150 | 590,150 | |
TOTAL MONEY MARKET FUNDS (Cost $14,208,787) | 14,208,787 | ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $400,220,986) | 343,214,104 | ||
NET OTHER ASSETS - 0.0% | (111,780) | ||
NET ASSETS - 100% | $ 343,102,324 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
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 | $ 9,254 |
Fidelity Securities Lending Cash Central Fund | 29,725 |
Total | $ 38,979 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Hong Kong | $ 90,434,563 | $ 90,434,563 | $ - | $ - |
Japan | 60,812,634 | 60,812,634 | - | - |
Australia | 55,074,722 | 55,074,722 | - | - |
United Kingdom | 33,665,293 | - | 33,665,293 | - |
France | 32,539,865 | - | 32,539,865 | - |
Singapore | 18,892,186 | 18,892,186 | - | - |
Netherlands | 7,593,049 | - | 7,593,049 | - |
Cayman Islands | 6,575,568 | 6,575,568 | - | - |
China | 6,298,320 | 6,298,320 | - | - |
Other | 15,929,069 | - | 15,929,069 | - |
Investment Companies | 1,190,048 | - | 1,190,048 | - |
Money Market Funds | 14,208,787 | 14,208,787 | - | - |
Total Investments in Securities: | $ 343,214,104 | $ 252,296,780 | $ 90,917,324 | $ - |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $159,443,097 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $142,053,103 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $541,607) - See accompanying schedule: Unaffiliated issuers (cost $386,012,199) | $ 329,005,317 |
|
Fidelity Central Funds (cost $14,208,787) | 14,208,787 |
|
Total Investments (cost $400,220,986) |
| $ 343,214,104 |
Cash | 12,356 | |
Foreign currency held at value (cost $2,461) | 2,389 | |
Receivable for investments sold | 216,904 | |
Receivable for fund shares sold | 266,644 | |
Dividends receivable | 1,261,338 | |
Distributions receivable from Fidelity Central Funds | 2,511 | |
Prepaid expenses | 1,406 | |
Other receivables | 302,950 | |
Total assets | 345,280,602 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 518,170 | |
Payable for fund shares redeemed | 639,379 | |
Accrued management fee | 215,390 | |
Distribution fees payable | 5,635 | |
Other affiliated payables | 122,277 | |
Other payables and accrued expenses | 87,277 | |
Collateral on securities loaned, at value | 590,150 | |
Total liabilities | 2,178,278 | |
|
|
|
Net Assets | $ 343,102,324 | |
Net Assets consist of: |
| |
Paid in capital | $ 696,668,528 | |
Distributions in excess of net investment income | (203,323) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (296,322,091) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (57,040,790) | |
Net Assets | $ 343,102,324 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 8.15 | |
|
|
|
Maximum offering price per share (100/94.25 of $8.15) | $ 8.65 | |
Class T: | $ 8.11 | |
|
|
|
Maximum offering price per share (100/96.50 of $8.11) | $ 8.40 | |
Class B: | $ 8.05 | |
|
|
|
Class C: | $ 8.03 | |
|
|
|
International Real Estate: | $ 8.21 | |
|
|
|
Institutional Class: | $ 8.19 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 5,429,061 |
Income from Fidelity Central Funds |
| 38,979 |
|
| 5,468,040 |
Less foreign taxes withheld |
| (218,746) |
Total income |
| 5,249,294 |
|
|
|
Expenses | ||
Management fee | $ 1,324,496 | |
Transfer agent fees | 647,156 | |
Distribution fees | 32,418 | |
Accounting and security lending fees | 97,947 | |
Custodian fees and expenses | 102,364 | |
Independent trustees' compensation | 1,104 | |
Registration fees | 41,823 | |
Audit | 39,337 | |
Legal | 867 | |
Miscellaneous | 3,492 | |
Total expenses before reductions | 2,291,004 | |
Expense reductions | (74,191) | 2,216,813 |
Net investment income (loss) | 3,032,481 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers (net of foreign taxes of $36,571) | 18,461,359 | |
Foreign currency transactions | 43,336 | |
Total net realized gain (loss) |
| 18,504,695 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $15,863) | (16,289,857) | |
Assets and liabilities in foreign currencies | (40,613) | |
Total change in net unrealized appreciation (depreciation) |
| (16,330,470) |
Net gain (loss) | 2,174,225 | |
Net increase (decrease) in net assets resulting from operations | $ 5,206,706 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 3,032,481 | $ 9,003,508 |
Net realized gain (loss) | 18,504,695 | (205,492,245) |
Change in net unrealized appreciation (depreciation) | (16,330,470) | 43,065,853 |
Net increase (decrease) in net assets resulting | 5,206,706 | (153,422,884) |
Distributions to shareholders from net investment income | (3,235,804) | - |
Distributions to shareholders from net realized gain | (5,017,969) | - |
Total distributions | (8,253,773) | - |
Share transactions - net increase (decrease) | (3,559,987) | (95,264,955) |
Redemption fees | 56,260 | 117,919 |
Total increase (decrease) in net assets | (6,550,794) | (248,569,920) |
|
|
|
Net Assets | ||
Beginning of period | 349,653,118 | 598,223,038 |
End of period (including distributions in excess of net investment income of $203,323 and $0, respectively) | $ 343,102,324 | $ 349,653,118 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||
(Unaudited) | 2009 | 2008 | 2007 H | |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 8.24 | $ 10.63 | $ 15.71 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .06 | .18 | .20 | .11 |
Net realized and unrealized gain (loss) | .04 | (2.57) | (3.48) | (1.87) |
Total from investment operations | .10 | (2.39) | (3.28) | (1.76) |
Distributions from net investment income | (.07) | - | (.31) | - |
Distributions from net realized gain | (.12) | - | (1.50) | - |
Total distributions | (.19) | - | (1.81) | - |
Redemption fees added to paid in capital E | - J | - J | .01 | .01 |
Net asset value, end of period | $ 8.15 | $ 8.24 | $ 10.63 | $ 15.71 |
Total Return B,C,D | 1.12% | (22.48)% | (23.20)% | (10.02)% |
Ratios to Average Net Assets F,I |
|
|
|
|
Expenses before reductions | 1.46% A | 1.45% | 1.38% | 1.37% A |
Expenses net of fee waivers, if any | 1.46% A | 1.45% | 1.38% | 1.37% A |
Expenses net of all reductions | 1.42% A | 1.42% | 1.35% | 1.26% A |
Net investment income (loss) | 1.39% A | 2.55% | 1.58% | 2.08% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 7,335 | $ 6,745 | $ 9,976 | $ 5,087 |
Portfolio turnover rate G | 58% A | 55% | 63% | 144% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||
(Unaudited) | 2009 | 2008 | 2007 H | |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 8.21 | $ 10.62 | $ 15.70 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .05 | .17 | .17 | .10 |
Net realized and unrealized gain (loss) | .03 | (2.58) | (3.48) | (1.87) |
Total from investment operations | .08 | (2.41) | (3.31) | (1.77) |
Distributions from net investment income | (.06) | - | (.28) | - |
Distributions from net realized gain | (.12) | - | (1.50) | - |
Total distributions | (.18) | - | (1.78) | - |
Redemption fees added to paid in capital E | - J | - J | .01 | .01 |
Net asset value, end of period | $ 8.11 | $ 8.21 | $ 10.62 | $ 15.70 |
Total Return B,C,D | .94% | (22.69)% | (23.39)% | (10.08)% |
Ratios to Average Net Assets F,I |
|
|
|
|
Expenses before reductions | 1.72% A | 1.71% | 1.64% | 1.61% A |
Expenses net of fee waivers, if any | 1.72% A | 1.71% | 1.64% | 1.61% A |
Expenses net of all reductions | 1.68% A | 1.68% | 1.60% | 1.51% A |
Net investment income (loss) | 1.13% A | 2.29% | 1.32% | 1.90% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,594 | $ 2,080 | $ 7,566 | $ 2,398 |
Portfolio turnover rate G | 58% A | 55% | 63% | 144% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | ||
(Unaudited) | 2009 | 2008 | 2007 H | |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 8.14 | $ 10.58 | $ 15.67 | $ 17.46 |
Income from Investment Operations |
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Net investment income (loss) E | .03 | .13 | .11 | .07 |
Net realized and unrealized gain (loss) | .04 | (2.57) | (3.48) | (1.87) |
Total from investment operations | .07 | (2.44) | (3.37) | (1.80) |
Distributions from net investment income | (.04) | - | (.23) | - |
Distributions from net realized gain | (.12) | - | (1.50) | - |
Total distributions | (.16) | - | (1.73) | - |
Redemption fees added to paid in capital E | - J | - J | .01 | .01 |
Net asset value, end of period | $ 8.05 | $ 8.14 | $ 10.58 | $ 15.67 |
Total Return B,C,D | .82% | (23.06)% | (23.80)% | (10.25)% |
Ratios to Average Net Assets F,I |
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Expenses before reductions | 2.21% A | 2.19% | 2.14% | 2.11% A |
Expenses net of fee waivers, if any | 2.21% A | 2.19% | 2.14% | 2.11% A |
Expenses net of all reductions | 2.17% A | 2.17% | 2.11% | 2.01% A |
Net investment income (loss) | .64% A | 1.81% | .82% | 1.38% A |
Supplemental Data |
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Net assets, end of period (000 omitted) | $ 630 | $ 606 | $ 930 | $ 1,158 |
Portfolio turnover rate G | 58% A | 55% | 63% | 144% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||
(Unaudited) | 2009 | 2008 | 2007 H | |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 8.13 | $ 10.57 | $ 15.67 | $ 17.46 |
Income from Investment Operations |
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Net investment income (loss) E | .03 | .13 | .11 | .07 |
Net realized and unrealized gain (loss) | .03 | (2.57) | (3.48) | (1.87) |
Total from investment operations | .06 | (2.44) | (3.37) | (1.80) |
Distributions from net investment income | (.04) | - | (.24) | - |
Distributions from net realized gain | (.12) | - | (1.50) | - |
Total distributions | (.16) | - | (1.74) | - |
Redemption fees added to paid in capital E | - J | - J | .01 | .01 |
Net asset value, end of period | $ 8.03 | $ 8.13 | $ 10.57 | $ 15.67 |
Total Return B,C,D | .71% | (23.08)% | (23.78)% | (10.25)% |
Ratios to Average Net Assets F,I |
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Expenses before reductions | 2.21% A | 2.19% | 2.14% | 2.10% A |
Expenses net of fee waivers, if any | 2.21% A | 2.19% | 2.14% | 2.10% A |
Expenses net of all reductions | 2.17% A | 2.17% | 2.11% | 2.00% A |
Net investment income (loss) | .64% A | 1.81% | .82% | 1.35% A |
Supplemental Data |
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Net assets, end of period (000 omitted) | $ 2,598 | $ 2,496 | $ 3,477 | $ 2,629 |
Portfolio turnover rate G | 58% A | 55% | 63% | 144% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - International Real Estate
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G | |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 8.29 | $ 10.68 | $ 15.73 | $ 14.69 | $ 12.09 | $ 10.00 |
Income from Investment Operations |
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Net investment income (loss) D | .07 | .20 | .25 | .31 | .30 | .23 |
Net realized and unrealized gain (loss) | .05 | (2.59) | (3.50) | 2.35 | 2.93 | 1.91 |
Total from investment operations | .12 | (2.39) | (3.25) | 2.66 | 3.23 | 2.14 |
Distributions from net investment income | (.08) | - | (.31) | (.22) | (.24) | (.03) |
Distributions from net realized gain | (.12) | - | (1.50) | (1.42) | (.40) | (.03) |
Total distributions | (.20) | - | (1.81) | (1.64) | (.64) | (.06) |
Redemption fees added to paid in capital D | - I | - I | .01 | .02 | .01 | .01 |
Net asset value, end of period | $ 8.21 | $ 8.29 | $ 10.68 | $ 15.73 | $ 14.69 | $ 12.09 |
Total Return B,C | 1.34% | (22.38)% | (22.97)% | 19.01% | 27.85% | 21.53% |
Ratios to Average Net Assets E,H |
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Expenses before reductions | 1.21%A | 1.19% | 1.11% | 1.07% | 1.12% | 1.29%A |
Expenses net of fee waivers, if any | 1.21%A | 1.19% | 1.10% | 1.06% | 1.12% | 1.29%A |
Expenses net of all reductions | 1.17%A | 1.16% | 1.07% | .96% | .91% | 1.27%A |
Net investment income (loss) | 1.64%A | 2.81% | 1.86% | 1.86% | 2.23% | 2.21%A |
Supplemental Data |
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Net assets, end of period (000 omitted) | $ 328,330 | $ 336,126 | $ 572,985 | $ 1,032,138 | $ 447,854 | $ 160,980 |
Portfolio turnover rate F | 58%A | 55% | 63% | 144% | 234% | 36%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period September 8, 2004 (commencement of operations) to July 31, 2005.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||
(Unaudited) | 2009 | 2008 | 2007 G | |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 8.28 | $ 10.66 | $ 15.73 | $ 17.46 |
Income from Investment Operations |
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Net investment income (loss) D | .07 | .20 | .24 | .12 |
Net realized and unrealized gain (loss) | .04 | (2.58) | (3.49) | (1.86) |
Total from investment operations | .11 | (2.38) | (3.25) | (1.74) |
Distributions from net investment income | (.08) | - | (.33) | - |
Distributions from net realized gain | (.12) | - | (1.50) | - |
Total distributions | (.20) | - | (1.83) | - |
Redemption fees added to paid in capital D | - I | - I | .01 | .01 |
Net asset value, end of period | $ 8.19 | $ 8.28 | $ 10.66 | $ 15.73 |
Total Return B,C | 1.22% | (22.33)% | (22.98)% | (9.91)% |
Ratios to Average Net Assets E,H |
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Expenses before reductions | 1.21% A | 1.19% | 1.13% | 1.08% A |
Expenses net of fee waivers, if any | 1.21% A | 1.19% | 1.13% | 1.08% A |
Expenses net of all reductions | 1.17% A | 1.17% | 1.10% | .97% A |
Net investment income (loss) | 1.65% A | 2.81% | 1.83% | 2.27% A |
Supplemental Data |
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Net assets, end of period (000 omitted) | $ 1,615 | $ 1,600 | $ 3,289 | $ 2,477 |
Portfolio turnover rate F | 58% A | 55% | 63% | 144% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
1. Organization.
Fidelity International Real Estate Fund (the Fund) is a non-diversified fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, International Real Estate and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds ,including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 15,514,009 |
Gross unrealized depreciation | (74,275,863) |
Net unrealized appreciation (depreciation) | $ (58,761,854) |
|
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Tax cost | $ 401,975,958 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $102,854,563 and $113,800,715, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .71% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution | Service | Paid to | Retained |
Class A | -% | .25% | $ 9,333 | $ 19 |
Class T | .25% | .25% | 6,048 | - |
Class B | .75% | .25% | 3,332 | 2,499 |
Class C | .75% | .25% | 13,705 | 2,118 |
|
|
| $ 32,418 | $ 4,636 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 3,499 |
Class T | 532 |
Class B* | 1,095 |
Class C* | 14 |
| $ 5,140 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Class A | $ 12,852 | .34 |
Class T | 4,327 | .36 |
Class B | 1,154 | .35 |
Class C | 4,749 | .35 |
International Real Estate | 621,155 | .35 |
Institutional Class | 2,919 | .34 |
| $ 647,156 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $27 for the period.
Semiannual Report
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $727 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $29,725.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $74,138 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $53.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 58,598 | $ - |
Class T | 19,755 | - |
Class B | 3,225 | - |
Class C | 14,423 | - |
International Real Estate | 3,124,785 | - |
Institutional Class | 15,018 | - |
Total | $ 3,235,804 | $ - |
From net realized gain |
|
|
Class A | $ 101,910 | $ - |
Class T | 37,040 | - |
Class B | 9,214 | - |
Class C | 39,337 | - |
International Real Estate | 4,807,363 | - |
Institutional Class | 23,105 | - |
Total | $ 5,017,969 | $ - |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 216,332 | 276,074 | $ 1,875,950 | $ 2,073,370 |
Reinvestment of distributions | 15,947 | - | 134,590 | - |
Shares redeemed | (151,282) | (395,339) | (1,317,902) | (2,671,924) |
Net increase (decrease) | 80,997 | (119,265) | $ 692,638 | $ (598,554) |
Class T |
|
|
|
|
Shares sold | 86,341 | 127,919 | $ 760,075 | $ 986,052 |
Reinvestment of distributions | 6,259 | - | 52,641 | - |
Shares redeemed | (26,443) | (586,866) | (228,003) | (4,132,628) |
Net increase (decrease) | 66,157 | (458,947) | $ 584,713 | $ (3,146,576) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class B |
|
|
|
|
Shares sold | 11,790 | 23,179 | $ 100,980 | $ 177,395 |
Reinvestment of distributions | 1,355 | - | 11,297 | - |
Shares redeemed | (9,315) | (36,555) | (80,290) | (251,823) |
Net increase (decrease) | 3,830 | (13,376) | $ 31,987 | $ (74,428) |
Class C |
|
|
|
|
Shares sold | 47,069 | 103,043 | $ 403,399 | $ 772,724 |
Reinvestment of distributions | 5,842 | - | 48,663 | - |
Shares redeemed | (36,632) | (124,838) | (315,695) | (872,457) |
Net increase (decrease) | 16,279 | (21,795) | $ 136,367 | $ (99,733) |
International Real Estate |
|
|
|
|
Shares sold | 5,870,073 | 11,251,723 | $ 51,484,466 | $ 83,151,001 |
Reinvestment of distributions | 875,458 | - | 7,441,392 | - |
Shares redeemed | (7,283,331) | (24,377,998) | (63,963,037) | (173,652,133) |
Net increase (decrease) | (537,800) | (13,126,275) | $ (5,037,179) | $ (90,501,132) |
Institutional Class |
|
|
|
|
Shares sold | 25,540 | 83,584 | $ 223,977 | $ 621,361 |
Reinvestment of distributions | 4,247 | - | 36,016 | - |
Shares redeemed | (25,932) | (198,948) | (228,506) | (1,465,893) |
Net increase (decrease) | 3,855 | (115,364) | $ 31,487 | $ (844,532) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research
(U.K.) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisers
FIL Investment Advisers (U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
AIRE-USAN-0310 1.843181.102
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor
International Real Estate
Fund - Institutional Class
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Institutional Class is a
class of Fidelity®
International Real Estate Fund
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.
Semiannual Report
Shareholder Expense Example - continued
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 | Beginning | Ending | Expenses Paid |
Class A | 1.46% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,011.20 | $ 7.40 |
Hypothetical A |
| $ 1,000.00 | $ 1,017.85 | $ 7.43 |
Class T | 1.72% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,009.40 | $ 8.71 |
Hypothetical A |
| $ 1,000.00 | $ 1,016.53 | $ 8.74 |
Class B | 2.21% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,008.20 | $ 11.19 |
Hypothetical A |
| $ 1,000.00 | $ 1,014.06 | $ 11.22 |
Class C | 2.21% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,007.10 | $ 11.18 |
Hypothetical A |
| $ 1,000.00 | $ 1,014.06 | $ 11.22 |
International Real Estate | 1.21% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,013.40 | $ 6.14 |
Hypothetical A |
| $ 1,000.00 | $ 1,019.11 | $ 6.16 |
Institutional Class | 1.21% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,012.20 | $ 6.14 |
Hypothetical A |
| $ 1,000.00 | $ 1,019.11 | $ 6.16 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Sun Hung Kai Properties Ltd. | 7.9 | 10.7 |
Westfield Group unit | 7.9 | 6.5 |
Unibail-Rodamco | 6.5 | 4.5 |
Mitsui Fudosan Co. Ltd. | 4.6 | 6.2 |
Mitsubishi Estate Co. Ltd. | 4.4 | 4.7 |
Henderson Land Development Co. Ltd. | 3.5 | 4.0 |
British Land Co. PLC | 3.4 | 3.7 |
Hongkong Land Holdings Ltd. | 3.2 | 3.4 |
China Overseas Land & Investment Ltd. | 3.0 | 4.6 |
Hang Lung Properties Ltd. | 3.0 | 3.7 |
| 47.4 | |
Top Five Countries as of January 31, 2010 | ||
(excluding cash equivalents) | % of fund's | % of fund's net assets |
Hong Kong | 26.4 | 30.5 |
Japan | 17.7 | 21.2 |
Australia | 16.1 | 11.4 |
United Kingdom | 9.8 | 9.9 |
France | 9.5 | 6.1 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Top Five REIT Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
REITs - Management/Investment | 27.3 | 18.7 |
REITs - Office Buildings | 10.4 | 9.1 |
REITs - Industrial Buildings | 5.6 | 4.9 |
REITs - Shopping Centers | 4.6 | 5.8 |
REITs - Apartments | 0.0 | 0.1 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks and |
| ![]() | Stocks and |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 95.9% |
| ** Foreign investments | 96.6% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.5% | |||
Shares | Value | ||
Australia - 16.1% | |||
CFS Retail Property Trust | 1,926,244 | $ 3,185,136 | |
Charter Hall Group unit | 1,680,000 | 980,456 | |
DEXUS Property Group unit | 6,581,610 | 4,830,425 | |
Goodman Group unit | 7,436,450 | 3,846,773 | |
ING Industrial Fund | 3,398,481 | 1,352,298 | |
Macquarie Office Trust | 6,640,000 | 1,732,069 | |
Stockland Corp. Ltd. unit | 2,580,748 | 8,511,959 | |
The GPT Group unit | 7,250,000 | 3,654,163 | |
Westfield Group unit | 2,414,032 | 26,981,443 | |
TOTAL AUSTRALIA | 55,074,722 | ||
Austria - 0.5% | |||
CA Immobilien Anlagen AG (a) | 154,983 | 1,635,352 | |
Bailiwick of Jersey - 0.4% | |||
LXB Retail Properties PLC | 967,400 | 1,489,451 | |
Cayman Islands - 1.9% | |||
Agile Property Holdings Ltd. | 1,960,000 | 2,476,523 | |
IFM Investments Ltd. ADR (a) | 25,200 | 180,936 | |
Shimao Property Holdings Ltd. | 2,535,000 | 3,918,109 | |
TOTAL CAYMAN ISLANDS | 6,575,568 | ||
China - 1.8% | |||
China Resources Land Ltd. | 3,473,000 | 6,298,320 | |
Finland - 1.0% | |||
Citycon Oyj | 873,403 | 3,481,973 | |
France - 9.5% | |||
Fonciere Des Regions | 40,100 | 3,984,911 | |
Fonciere Des Regions warrants 12/31/10 (a) | 40,100 | 30,916 | |
Klepierre SA | 120,000 | 4,470,163 | |
Societe de la Tour Eiffel | 22,900 | 1,613,563 | |
Unibail-Rodamco | 103,567 | 22,440,312 | |
TOTAL FRANCE | 32,539,865 | ||
Germany - 0.9% | |||
alstria office REIT-AG | 127,206 | 1,428,187 | |
Deutsche Wohnen AG (a) | 153,100 | 1,551,549 | |
TOTAL GERMANY | 2,979,736 | ||
Greece - 0.1% | |||
Babis Vovos International Technical SA (a) | 86,000 | 466,080 | |
Hong Kong - 26.4% | |||
China Overseas Land & Investment Ltd. | 5,731,680 | 10,276,339 | |
Common Stocks - continued | |||
Shares | Value | ||
Hong Kong - continued | |||
Hang Lung Properties Ltd. | 2,964,000 | $ 10,116,758 | |
Henderson Land Development Co. Ltd. | 1,920,000 | 12,154,638 | |
Hongkong Land Holdings Ltd. | 2,375,000 | 11,138,750 | |
Link (REIT) | 3,080,915 | 7,428,529 | |
New World Development Co. Ltd. | 2,849,000 | 4,696,991 | |
Sun Hung Kai Properties Ltd. | 2,102,000 | 27,155,070 | |
Wharf Holdings Ltd. | 1,502,000 | 7,467,488 | |
TOTAL HONG KONG | 90,434,563 | ||
Japan - 17.7% | |||
Japan Prime Realty Investment Corp. | 603 | 1,158,973 | |
Japan Real Estate Investment Corp. | 392 | 3,287,294 | |
Japan Retail Fund Investment Corp. | 524 | 2,438,019 | |
Kenedix Realty Investment Corp. | 730 | 2,070,234 | |
Kenedix, Inc. (a) | 1,428 | 442,463 | |
Mitsubishi Estate Co. Ltd. | 921,000 | 14,977,600 | |
Mitsui Fudosan Co. Ltd. | 920,000 | 15,644,178 | |
Nippon Building Fund, Inc. | 518 | 4,579,196 | |
Nomura Real Estate Office Fund, Inc. | 539 | 3,116,849 | |
ORIX JREIT, Inc. | 626 | 3,085,964 | |
Sumitomo Realty & Development Co. Ltd. | 561,000 | 10,011,864 | |
TOTAL JAPAN | 60,812,634 | ||
Netherlands - 2.2% | |||
Corio NV | 109,111 | 6,697,050 | |
Eurocommercial (Certificaten Van Aandelen) unit | 22,957 | 895,999 | |
TOTAL NETHERLANDS | 7,593,049 | ||
Norway - 0.6% | |||
Norwegian Property ASA (a) | 966,000 | 2,181,953 | |
Singapore - 5.5% | |||
Allgreen Properties Ltd. | 2,270,000 | 1,888,640 | |
Ascendas Real Estate Investment Trust (A-REIT) | 2,016,193 | 2,781,450 | |
CapitaCommercial Trust (REIT) | 6,582,000 | 4,961,365 | |
CapitaLand Ltd. | 2,018,900 | 5,541,656 | |
CapitaMall Trust | 1,115,000 | 1,339,982 | |
Keppel Land Ltd. | 1,020,000 | 2,379,093 | |
TOTAL SINGAPORE | 18,892,186 | ||
Sweden - 1.1% | |||
Castellum AB | 409,000 | 3,694,524 | |
Common Stocks - continued | |||
Shares | Value | ||
United Kingdom - 9.8% | |||
Big Yellow Group PLC (a)(c) | 222,800 | $ 1,115,004 | |
British Land Co. PLC | 1,694,428 | 11,757,170 | |
Great Portland Estates PLC | 897,454 | 4,008,736 | |
Hammerson PLC | 534,799 | 3,213,039 | |
Land Securities Group PLC | 510,902 | 5,185,441 | |
Segro PLC | 994,200 | 4,938,151 | |
Unite Group PLC (a) | 752,650 | 3,447,752 | |
TOTAL UNITED KINGDOM | 33,665,293 | ||
TOTAL COMMON STOCKS (Cost $384,899,846) | 327,815,269 | ||
Investment Companies - 0.4% | |||
|
|
|
|
Luxembourg - 0.4% | |||
ProLogis European Properties Fund (a) | 185,200 | 1,190,048 | |
Money Market Funds - 4.1% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.17% (d) | 13,618,637 | 13,618,637 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(d) | 590,150 | 590,150 | |
TOTAL MONEY MARKET FUNDS (Cost $14,208,787) | 14,208,787 | ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $400,220,986) | 343,214,104 | ||
NET OTHER ASSETS - 0.0% | (111,780) | ||
NET ASSETS - 100% | $ 343,102,324 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
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 | $ 9,254 |
Fidelity Securities Lending Cash Central Fund | 29,725 |
Total | $ 38,979 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Hong Kong | $ 90,434,563 | $ 90,434,563 | $ - | $ - |
Japan | 60,812,634 | 60,812,634 | - | - |
Australia | 55,074,722 | 55,074,722 | - | - |
United Kingdom | 33,665,293 | - | 33,665,293 | - |
France | 32,539,865 | - | 32,539,865 | - |
Singapore | 18,892,186 | 18,892,186 | - | - |
Netherlands | 7,593,049 | - | 7,593,049 | - |
Cayman Islands | 6,575,568 | 6,575,568 | - | - |
China | 6,298,320 | 6,298,320 | - | - |
Other | 15,929,069 | - | 15,929,069 | - |
Investment Companies | 1,190,048 | - | 1,190,048 | - |
Money Market Funds | 14,208,787 | 14,208,787 | - | - |
Total Investments in Securities: | $ 343,214,104 | $ 252,296,780 | $ 90,917,324 | $ - |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $159,443,097 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $142,053,103 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $541,607) - See accompanying schedule: Unaffiliated issuers (cost $386,012,199) | $ 329,005,317 |
|
Fidelity Central Funds (cost $14,208,787) | 14,208,787 |
|
Total Investments (cost $400,220,986) |
| $ 343,214,104 |
Cash | 12,356 | |
Foreign currency held at value (cost $2,461) | 2,389 | |
Receivable for investments sold | 216,904 | |
Receivable for fund shares sold | 266,644 | |
Dividends receivable | 1,261,338 | |
Distributions receivable from Fidelity Central Funds | 2,511 | |
Prepaid expenses | 1,406 | |
Other receivables | 302,950 | |
Total assets | 345,280,602 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 518,170 | |
Payable for fund shares redeemed | 639,379 | |
Accrued management fee | 215,390 | |
Distribution fees payable | 5,635 | |
Other affiliated payables | 122,277 | |
Other payables and accrued expenses | 87,277 | |
Collateral on securities loaned, at value | 590,150 | |
Total liabilities | 2,178,278 | |
|
|
|
Net Assets | $ 343,102,324 | |
Net Assets consist of: |
| |
Paid in capital | $ 696,668,528 | |
Distributions in excess of net investment income | (203,323) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (296,322,091) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (57,040,790) | |
Net Assets | $ 343,102,324 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 8.15 | |
|
|
|
Maximum offering price per share (100/94.25 of $8.15) | $ 8.65 | |
Class T: | $ 8.11 | |
|
|
|
Maximum offering price per share (100/96.50 of $8.11) | $ 8.40 | |
Class B: | $ 8.05 | |
|
|
|
Class C: | $ 8.03 | |
|
|
|
International Real Estate: | $ 8.21 | |
|
|
|
Institutional Class: | $ 8.19 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 5,429,061 |
Income from Fidelity Central Funds |
| 38,979 |
|
| 5,468,040 |
Less foreign taxes withheld |
| (218,746) |
Total income |
| 5,249,294 |
|
|
|
Expenses | ||
Management fee | $ 1,324,496 | |
Transfer agent fees | 647,156 | |
Distribution fees | 32,418 | |
Accounting and security lending fees | 97,947 | |
Custodian fees and expenses | 102,364 | |
Independent trustees' compensation | 1,104 | |
Registration fees | 41,823 | |
Audit | 39,337 | |
Legal | 867 | |
Miscellaneous | 3,492 | |
Total expenses before reductions | 2,291,004 | |
Expense reductions | (74,191) | 2,216,813 |
Net investment income (loss) | 3,032,481 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers (net of foreign taxes of $36,571) | 18,461,359 | |
Foreign currency transactions | 43,336 | |
Total net realized gain (loss) |
| 18,504,695 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $15,863) | (16,289,857) | |
Assets and liabilities in foreign currencies | (40,613) | |
Total change in net unrealized appreciation (depreciation) |
| (16,330,470) |
Net gain (loss) | 2,174,225 | |
Net increase (decrease) in net assets resulting from operations | $ 5,206,706 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 3,032,481 | $ 9,003,508 |
Net realized gain (loss) | 18,504,695 | (205,492,245) |
Change in net unrealized appreciation (depreciation) | (16,330,470) | 43,065,853 |
Net increase (decrease) in net assets resulting | 5,206,706 | (153,422,884) |
Distributions to shareholders from net investment income | (3,235,804) | - |
Distributions to shareholders from net realized gain | (5,017,969) | - |
Total distributions | (8,253,773) | - |
Share transactions - net increase (decrease) | (3,559,987) | (95,264,955) |
Redemption fees | 56,260 | 117,919 |
Total increase (decrease) in net assets | (6,550,794) | (248,569,920) |
|
|
|
Net Assets | ||
Beginning of period | 349,653,118 | 598,223,038 |
End of period (including distributions in excess of net investment income of $203,323 and $0, respectively) | $ 343,102,324 | $ 349,653,118 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||
(Unaudited) | 2009 | 2008 | 2007 H | |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 8.24 | $ 10.63 | $ 15.71 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .06 | .18 | .20 | .11 |
Net realized and unrealized gain (loss) | .04 | (2.57) | (3.48) | (1.87) |
Total from investment operations | .10 | (2.39) | (3.28) | (1.76) |
Distributions from net investment income | (.07) | - | (.31) | - |
Distributions from net realized gain | (.12) | - | (1.50) | - |
Total distributions | (.19) | - | (1.81) | - |
Redemption fees added to paid in capital E | - J | - J | .01 | .01 |
Net asset value, end of period | $ 8.15 | $ 8.24 | $ 10.63 | $ 15.71 |
Total Return B,C,D | 1.12% | (22.48)% | (23.20)% | (10.02)% |
Ratios to Average Net Assets F,I |
|
|
|
|
Expenses before reductions | 1.46% A | 1.45% | 1.38% | 1.37% A |
Expenses net of fee waivers, if any | 1.46% A | 1.45% | 1.38% | 1.37% A |
Expenses net of all reductions | 1.42% A | 1.42% | 1.35% | 1.26% A |
Net investment income (loss) | 1.39% A | 2.55% | 1.58% | 2.08% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 7,335 | $ 6,745 | $ 9,976 | $ 5,087 |
Portfolio turnover rate G | 58% A | 55% | 63% | 144% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||
(Unaudited) | 2009 | 2008 | 2007 H | |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 8.21 | $ 10.62 | $ 15.70 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .05 | .17 | .17 | .10 |
Net realized and unrealized gain (loss) | .03 | (2.58) | (3.48) | (1.87) |
Total from investment operations | .08 | (2.41) | (3.31) | (1.77) |
Distributions from net investment income | (.06) | - | (.28) | - |
Distributions from net realized gain | (.12) | - | (1.50) | - |
Total distributions | (.18) | - | (1.78) | - |
Redemption fees added to paid in capital E | - J | - J | .01 | .01 |
Net asset value, end of period | $ 8.11 | $ 8.21 | $ 10.62 | $ 15.70 |
Total Return B,C,D | .94% | (22.69)% | (23.39)% | (10.08)% |
Ratios to Average Net Assets F,I |
|
|
|
|
Expenses before reductions | 1.72% A | 1.71% | 1.64% | 1.61% A |
Expenses net of fee waivers, if any | 1.72% A | 1.71% | 1.64% | 1.61% A |
Expenses net of all reductions | 1.68% A | 1.68% | 1.60% | 1.51% A |
Net investment income (loss) | 1.13% A | 2.29% | 1.32% | 1.90% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,594 | $ 2,080 | $ 7,566 | $ 2,398 |
Portfolio turnover rate G | 58% A | 55% | 63% | 144% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | ||
(Unaudited) | 2009 | 2008 | 2007 H | |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 8.14 | $ 10.58 | $ 15.67 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .03 | .13 | .11 | .07 |
Net realized and unrealized gain (loss) | .04 | (2.57) | (3.48) | (1.87) |
Total from investment operations | .07 | (2.44) | (3.37) | (1.80) |
Distributions from net investment income | (.04) | - | (.23) | - |
Distributions from net realized gain | (.12) | - | (1.50) | - |
Total distributions | (.16) | - | (1.73) | - |
Redemption fees added to paid in capital E | - J | - J | .01 | .01 |
Net asset value, end of period | $ 8.05 | $ 8.14 | $ 10.58 | $ 15.67 |
Total Return B,C,D | .82% | (23.06)% | (23.80)% | (10.25)% |
Ratios to Average Net Assets F,I |
|
|
|
|
Expenses before reductions | 2.21% A | 2.19% | 2.14% | 2.11% A |
Expenses net of fee waivers, if any | 2.21% A | 2.19% | 2.14% | 2.11% A |
Expenses net of all reductions | 2.17% A | 2.17% | 2.11% | 2.01% A |
Net investment income (loss) | .64% A | 1.81% | .82% | 1.38% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 630 | $ 606 | $ 930 | $ 1,158 |
Portfolio turnover rate G | 58% A | 55% | 63% | 144% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||
(Unaudited) | 2009 | 2008 | 2007 H | |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 8.13 | $ 10.57 | $ 15.67 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .03 | .13 | .11 | .07 |
Net realized and unrealized gain (loss) | .03 | (2.57) | (3.48) | (1.87) |
Total from investment operations | .06 | (2.44) | (3.37) | (1.80) |
Distributions from net investment income | (.04) | - | (.24) | - |
Distributions from net realized gain | (.12) | - | (1.50) | - |
Total distributions | (.16) | - | (1.74) | - |
Redemption fees added to paid in capital E | - J | - J | .01 | .01 |
Net asset value, end of period | $ 8.03 | $ 8.13 | $ 10.57 | $ 15.67 |
Total Return B,C,D | .71% | (23.08)% | (23.78)% | (10.25)% |
Ratios to Average Net Assets F,I |
|
|
|
|
Expenses before reductions | 2.21% A | 2.19% | 2.14% | 2.10% A |
Expenses net of fee waivers, if any | 2.21% A | 2.19% | 2.14% | 2.10% A |
Expenses net of all reductions | 2.17% A | 2.17% | 2.11% | 2.00% A |
Net investment income (loss) | .64% A | 1.81% | .82% | 1.35% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,598 | $ 2,496 | $ 3,477 | $ 2,629 |
Portfolio turnover rate G | 58% A | 55% | 63% | 144% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - International Real Estate
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 8.29 | $ 10.68 | $ 15.73 | $ 14.69 | $ 12.09 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .07 | .20 | .25 | .31 | .30 | .23 |
Net realized and unrealized gain (loss) | .05 | (2.59) | (3.50) | 2.35 | 2.93 | 1.91 |
Total from investment operations | .12 | (2.39) | (3.25) | 2.66 | 3.23 | 2.14 |
Distributions from net investment income | (.08) | - | (.31) | (.22) | (.24) | (.03) |
Distributions from net realized gain | (.12) | - | (1.50) | (1.42) | (.40) | (.03) |
Total distributions | (.20) | - | (1.81) | (1.64) | (.64) | (.06) |
Redemption fees added to paid in capital D | - I | - I | .01 | .02 | .01 | .01 |
Net asset value, end of period | $ 8.21 | $ 8.29 | $ 10.68 | $ 15.73 | $ 14.69 | $ 12.09 |
Total Return B,C | 1.34% | (22.38)% | (22.97)% | 19.01% | 27.85% | 21.53% |
Ratios to Average Net Assets E,H |
|
|
|
|
| |
Expenses before reductions | 1.21%A | 1.19% | 1.11% | 1.07% | 1.12% | 1.29%A |
Expenses net of fee waivers, if any | 1.21%A | 1.19% | 1.10% | 1.06% | 1.12% | 1.29%A |
Expenses net of all reductions | 1.17%A | 1.16% | 1.07% | .96% | .91% | 1.27%A |
Net investment income (loss) | 1.64%A | 2.81% | 1.86% | 1.86% | 2.23% | 2.21%A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 328,330 | $ 336,126 | $ 572,985 | $ 1,032,138 | $ 447,854 | $ 160,980 |
Portfolio turnover rate F | 58%A | 55% | 63% | 144% | 234% | 36%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period September 8, 2004 (commencement of operations) to July 31, 2005.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||
(Unaudited) | 2009 | 2008 | 2007 G | |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 8.28 | $ 10.66 | $ 15.73 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) D | .07 | .20 | .24 | .12 |
Net realized and unrealized gain (loss) | .04 | (2.58) | (3.49) | (1.86) |
Total from investment operations | .11 | (2.38) | (3.25) | (1.74) |
Distributions from net investment income | (.08) | - | (.33) | - |
Distributions from net realized gain | (.12) | - | (1.50) | - |
Total distributions | (.20) | - | (1.83) | - |
Redemption fees added to paid in capital D | - I | - I | .01 | .01 |
Net asset value, end of period | $ 8.19 | $ 8.28 | $ 10.66 | $ 15.73 |
Total Return B,C | 1.22% | (22.33)% | (22.98)% | (9.91)% |
Ratios to Average Net Assets E,H |
|
|
|
|
Expenses before reductions | 1.21% A | 1.19% | 1.13% | 1.08% A |
Expenses net of fee waivers, if any | 1.21% A | 1.19% | 1.13% | 1.08% A |
Expenses net of all reductions | 1.17% A | 1.17% | 1.10% | .97% A |
Net investment income (loss) | 1.65% A | 2.81% | 1.83% | 2.27% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,615 | $ 1,600 | $ 3,289 | $ 2,477 |
Portfolio turnover rate F | 58% A | 55% | 63% | 144% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
1. Organization.
Fidelity International Real Estate Fund (the Fund) is a non-diversified fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, International Real Estate and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds ,including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 15,514,009 |
Gross unrealized depreciation | (74,275,863) |
Net unrealized appreciation (depreciation) | $ (58,761,854) |
|
|
Tax cost | $ 401,975,958 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $102,854,563 and $113,800,715, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .71% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution | Service | Paid to | Retained |
Class A | -% | .25% | $ 9,333 | $ 19 |
Class T | .25% | .25% | 6,048 | - |
Class B | .75% | .25% | 3,332 | 2,499 |
Class C | .75% | .25% | 13,705 | 2,118 |
|
|
| $ 32,418 | $ 4,636 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 3,499 |
Class T | 532 |
Class B* | 1,095 |
Class C* | 14 |
| $ 5,140 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Class A | $ 12,852 | .34 |
Class T | 4,327 | .36 |
Class B | 1,154 | .35 |
Class C | 4,749 | .35 |
International Real Estate | 621,155 | .35 |
Institutional Class | 2,919 | .34 |
| $ 647,156 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $27 for the period.
Semiannual Report
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $727 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $29,725.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $74,138 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $53.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 58,598 | $ - |
Class T | 19,755 | - |
Class B | 3,225 | - |
Class C | 14,423 | - |
International Real Estate | 3,124,785 | - |
Institutional Class | 15,018 | - |
Total | $ 3,235,804 | $ - |
From net realized gain |
|
|
Class A | $ 101,910 | $ - |
Class T | 37,040 | - |
Class B | 9,214 | - |
Class C | 39,337 | - |
International Real Estate | 4,807,363 | - |
Institutional Class | 23,105 | - |
Total | $ 5,017,969 | $ - |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 216,332 | 276,074 | $ 1,875,950 | $ 2,073,370 |
Reinvestment of distributions | 15,947 | - | 134,590 | - |
Shares redeemed | (151,282) | (395,339) | (1,317,902) | (2,671,924) |
Net increase (decrease) | 80,997 | (119,265) | $ 692,638 | $ (598,554) |
Class T |
|
|
|
|
Shares sold | 86,341 | 127,919 | $ 760,075 | $ 986,052 |
Reinvestment of distributions | 6,259 | - | 52,641 | - |
Shares redeemed | (26,443) | (586,866) | (228,003) | (4,132,628) |
Net increase (decrease) | 66,157 | (458,947) | $ 584,713 | $ (3,146,576) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class B |
|
|
|
|
Shares sold | 11,790 | 23,179 | $ 100,980 | $ 177,395 |
Reinvestment of distributions | 1,355 | - | 11,297 | - |
Shares redeemed | (9,315) | (36,555) | (80,290) | (251,823) |
Net increase (decrease) | 3,830 | (13,376) | $ 31,987 | $ (74,428) |
Class C |
|
|
|
|
Shares sold | 47,069 | 103,043 | $ 403,399 | $ 772,724 |
Reinvestment of distributions | 5,842 | - | 48,663 | - |
Shares redeemed | (36,632) | (124,838) | (315,695) | (872,457) |
Net increase (decrease) | 16,279 | (21,795) | $ 136,367 | $ (99,733) |
International Real Estate |
|
|
|
|
Shares sold | 5,870,073 | 11,251,723 | $ 51,484,466 | $ 83,151,001 |
Reinvestment of distributions | 875,458 | - | 7,441,392 | - |
Shares redeemed | (7,283,331) | (24,377,998) | (63,963,037) | (173,652,133) |
Net increase (decrease) | (537,800) | (13,126,275) | $ (5,037,179) | $ (90,501,132) |
Institutional Class |
|
|
|
|
Shares sold | 25,540 | 83,584 | $ 223,977 | $ 621,361 |
Reinvestment of distributions | 4,247 | - | 36,016 | - |
Shares redeemed | (25,932) | (198,948) | (228,506) | (1,465,893) |
Net increase (decrease) | 3,855 | (115,364) | $ 31,487 | $ (844,532) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research
(U.K.) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisers
FIL Investment Advisers (U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
AIREI-USAN-0310 1.843174.102
Fidelity®
Leveraged Company Stock
Fund
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the last six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management 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 (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
|
|
| Expenses Paid |
Leveraged Company Stock | .90% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,147.70 | $ 4.87 |
Hypothetical A |
| $ 1,000.00 | $ 1,020.67 | $ 4.58 |
Class K | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,149.20 | $ 3.79 |
Hypothetical A |
| $ 1,000.00 | $ 1,021.68 | $ 3.57 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
ON Semiconductor Corp. | 3.8 | 4.2 |
Service Corp. International | 3.2 | 2.8 |
AES Corp. | 3.1 | 3.5 |
Celanese Corp. Class A | 2.9 | 3.0 |
Peabody Energy Corp. | 2.8 | 2.4 |
Tenet Healthcare Corp. | 2.8 | 2.6 |
PNC Financial Services Group, Inc. | 2.7 | 2.1 |
El Paso Corp. | 2.6 | 3.3 |
Owens Corning | 2.2 | 2.3 |
KeyCorp | 2.0 | 1.8 |
| 28.1 | |
Top Five Market Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Industrials | 17.4 | 15.3 |
Energy | 14.5 | 15.4 |
Consumer Discretionary | 13.8 | 11.6 |
Financials | 12.7 | 13.1 |
Information Technology | 11.2 | 11.1 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks 92.9% |
| ![]() | Stocks 88.5% |
| ||
![]() | Bonds 2.9% |
| ![]() | Bonds 5.4% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Other Investments 2.0% |
| ![]() | Other Investments 2.1% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 5.9% |
| ** Foreign investments | 6.0% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 92.8% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.6% | |||
Auto Components - 0.9% | |||
Johnson Controls, Inc. | 548,300 | $ 15,259 | |
The Goodyear Tire & Rubber Co. (a) | 564,063 | 7,525 | |
TRW Automotive Holdings Corp. (a) | 430,300 | 9,910 | |
WABCO Holdings, Inc. | 211,533 | 5,468 | |
| 38,162 | ||
Automobiles - 0.2% | |||
Daimler AG | 209,400 | 9,593 | |
Diversified Consumer Services - 3.6% | |||
Brinks Home Security Holdings, Inc. (a) | 244,500 | 10,025 | |
Carriage Services, Inc. (a) | 266,200 | 1,025 | |
Service Corp. International (f) | 17,967,393 | 137,810 | |
Stewart Enterprises, Inc. Class A | 1,515,242 | 7,682 | |
| 156,542 | ||
Hotels, Restaurants & Leisure - 1.4% | |||
Bally Technologies, Inc. (a) | 198,560 | 7,877 | |
Burger King Holdings, Inc. | 108,900 | 1,899 | |
Domino's Pizza, Inc. (a) | 942,184 | 10,647 | |
Las Vegas Sands Corp. (a)(e) | 995,011 | 15,423 | |
Penn National Gaming, Inc. (a) | 537,836 | 14,511 | |
The Steak n Shake Co. (a) | 32,970 | 10,591 | |
Wendy's/Arby's Group, Inc. | 546,800 | 2,521 | |
| 63,469 | ||
Household Durables - 2.7% | |||
Black & Decker Corp. | 331,700 | 21,448 | |
Harman International Industries, Inc. | 1,005,606 | 35,749 | |
Lennar Corp. Class A | 983,400 | 15,105 | |
Newell Rubbermaid, Inc. | 3,304,500 | 44,842 | |
| 117,144 | ||
Leisure Equipment & Products - 0.4% | |||
Callaway Golf Co. (e) | 2,514,010 | 18,755 | |
Media - 2.2% | |||
Cablevision Systems Corp. - NY Group Class A | 541,324 | 13,880 | |
Cinemark Holdings, Inc. | 1,554,497 | 22,043 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Media - continued | |||
Comcast Corp. Class A | 3,153,000 | $ 49,912 | |
Gray Television, Inc. (a)(f) | 2,401,344 | 4,755 | |
Nexstar Broadcasting Group, Inc. Class A (a) | 1,130,500 | 5,178 | |
| 95,768 | ||
Specialty Retail - 0.6% | |||
Asbury Automotive Group, Inc. (a) | 385,122 | 4,263 | |
Gamestop Corp. Class A (a)(e) | 544,600 | 10,767 | |
Sally Beauty Holdings, Inc. (a) | 300,000 | 2,502 | |
The Pep Boys - Manny, Moe & Jack | 996,671 | 8,322 | |
| 25,854 | ||
Textiles, Apparel & Luxury Goods - 0.6% | |||
Coach, Inc. | 314,020 | 10,953 | |
Deckers Outdoor Corp. (a) | 54,423 | 5,343 | |
Hanesbrands, Inc. (a) | 562,400 | 12,918 | |
| 29,214 | ||
TOTAL CONSUMER DISCRETIONARY | 554,501 | ||
CONSUMER STAPLES - 2.3% | |||
Food & Staples Retailing - 1.1% | |||
Rite Aid Corp. (a)(e) | 16,497,982 | 22,437 | |
Safeway, Inc. | 310,100 | 6,962 | |
SUPERVALU, Inc. | 645,700 | 9,498 | |
Whole Foods Market, Inc. (a) | 335,200 | 9,124 | |
| 48,021 | ||
Food Products - 1.1% | |||
Corn Products International, Inc. | 281,534 | 8,001 | |
Darling International, Inc. (a) | 2,498,930 | 19,467 | |
Dean Foods Co. (a) | 569,900 | 10,047 | |
Smithfield Foods, Inc. (a) | 559,606 | 8,428 | |
| 45,943 | ||
Personal Products - 0.1% | |||
Revlon, Inc. (a) | 413,621 | 6,374 | |
TOTAL CONSUMER STAPLES | 100,338 | ||
ENERGY - 13.9% | |||
Energy Equipment & Services - 2.7% | |||
Baker Hughes, Inc. | 218,000 | 9,871 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Energy Equipment & Services - continued | |||
Ensco International Ltd. ADR | 110,000 | $ 4,293 | |
Exterran Holdings, Inc. (a)(e) | 1,355,008 | 27,480 | |
Hercules Offshore, Inc. (a) | 1,493,431 | 5,824 | |
Noble Corp. | 524,700 | 21,156 | |
Oil States International, Inc. (a) | 270,700 | 9,973 | |
Parker Drilling Co. (a) | 1,200,000 | 5,772 | |
Pride International, Inc. (a) | 346,100 | 10,245 | |
Rowan Companies, Inc. (a) | 321,100 | 6,897 | |
Schlumberger Ltd. | 109,400 | 6,943 | |
Schoeller-Bleckmann Oilfield Equipment AG | 232,656 | 12,171 | |
Seahawk Drilling, Inc. (a) | 23,073 | 482 | |
| 121,107 | ||
Oil, Gas & Consumable Fuels - 11.2% | |||
Alpha Natural Resources, Inc. (a) | 725,938 | 29,480 | |
Arch Coal, Inc. | 688,255 | 14,502 | |
CONSOL Energy, Inc. | 327,200 | 15,251 | |
El Paso Corp. | 11,247,076 | 114,158 | |
Forest Oil Corp. (a) | 2,400,286 | 57,895 | |
Frontier Oil Corp. | 1,972,600 | 24,579 | |
Mariner Energy, Inc. (a) | 2,093,338 | 30,249 | |
Massey Energy Co. | 137,500 | 5,297 | |
Nexen, Inc. | 188,000 | 4,116 | |
Overseas Shipholding Group, Inc. (e) | 1,164,192 | 51,935 | |
Paladin Energy Ltd. (a) | 2,042,400 | 6,574 | |
Peabody Energy Corp. | 2,893,208 | 121,862 | |
Plains Exploration & Production Co. (a) | 360,660 | 12,028 | |
Western Refining, Inc. (a)(e) | 560,758 | 2,563 | |
| 490,489 | ||
TOTAL ENERGY | 611,596 | ||
FINANCIALS - 12.4% | |||
Capital Markets - 0.3% | |||
Morgan Stanley | 548,900 | 14,700 | |
Commercial Banks - 8.9% | |||
Huntington Bancshares, Inc. | 11,363,080 | 54,429 | |
KeyCorp | 12,378,768 | 88,880 | |
PNC Financial Services Group, Inc. | 2,146,975 | 119,007 | |
Regions Financial Corp. | 2,011,695 | 12,774 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
SunTrust Banks, Inc. | 2,549,800 | $ 62,037 | |
Wells Fargo & Co. | 1,871,088 | 53,195 | |
| 390,322 | ||
Diversified Financial Services - 2.0% | |||
Bank of America Corp. | 5,686,100 | 86,315 | |
CIT Group, Inc. (a) | 72,485 | 2,306 | |
| 88,621 | ||
Insurance - 0.6% | |||
Assured Guaranty Ltd. | 870,995 | 19,737 | |
Lincoln National Corp. | 327,900 | 8,060 | |
| 27,797 | ||
Real Estate Investment Trusts - 0.3% | |||
Host Hotels & Resorts, Inc. | 1,016,122 | 10,771 | |
Thrifts & Mortgage Finance - 0.3% | |||
First Niagara Financial Group, Inc. | 851,444 | 11,690 | |
Washington Mutual, Inc. (a) | 5,352,200 | 1,006 | |
| 12,696 | ||
TOTAL FINANCIALS | 544,907 | ||
HEALTH CARE - 6.9% | |||
Biotechnology - 0.0% | |||
Lexicon Pharmaceuticals, Inc. (a) | 392,187 | 698 | |
Health Care Equipment & Supplies - 1.8% | |||
Beckman Coulter, Inc. | 304,200 | 19,886 | |
Boston Scientific Corp. (a) | 1,062,100 | 9,166 | |
Hospira, Inc. (a) | 578,358 | 29,288 | |
Inverness Medical Innovations, Inc. (a) | 518,708 | 20,940 | |
| 79,280 | ||
Health Care Providers & Services - 4.5% | |||
Community Health Systems, Inc. (a) | 555,276 | 18,113 | |
DaVita, Inc. (a) | 394,947 | 23,602 | |
Henry Schein, Inc. (a) | 54,400 | 2,940 | |
Laboratory Corp. of America Holdings (a) | 54,600 | 3,882 | |
RehabCare Group, Inc. (a) | 230,000 | 6,684 | |
Rural/Metro Corp. (a) | 834,200 | 4,605 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
Sun Healthcare Group, Inc. (a) | 1,642,522 | $ 14,356 | |
Tenet Healthcare Corp. (a) | 21,982,165 | 121,781 | |
| 195,963 | ||
Health Care Technology - 0.5% | |||
Cerner Corp. (a) | 276,209 | 20,895 | |
Pharmaceuticals - 0.1% | |||
Allergan, Inc. | 109,700 | 6,308 | |
TOTAL HEALTH CARE | 303,144 | ||
INDUSTRIALS - 17.1% | |||
Aerospace & Defense - 0.4% | |||
American Science & Engineering, Inc. | 85,370 | 6,628 | |
Teledyne Technologies, Inc. (a) | 340,694 | 12,694 | |
| 19,322 | ||
Air Freight & Logistics - 0.0% | |||
Park-Ohio Holdings Corp. (a) | 78,022 | 713 | |
Airlines - 2.2% | |||
AirTran Holdings, Inc. (a) | 1,779,700 | 8,578 | |
AMR Corp. (a) | 670,630 | 4,641 | |
Delta Air Lines, Inc. (a) | 6,363,193 | 77,822 | |
UAL Corp. (a) | 280,400 | 3,429 | |
| 94,470 | ||
Building Products - 3.8% | |||
Armstrong World Industries, Inc. (a) | 941,230 | 34,289 | |
Masco Corp. | 2,688,779 | 36,460 | |
Owens Corning (a) | 3,661,683 | 94,215 | |
Owens Corning warrants 10/31/13 (a) | 406,600 | 915 | |
| 165,879 | ||
Commercial Services & Supplies - 3.5% | |||
Cenveo, Inc. (a)(f) | 3,858,300 | 27,857 | |
Deluxe Corp. | 1,749,127 | 32,551 | |
R.R. Donnelley & Sons Co. | 450,900 | 8,937 | |
Republic Services, Inc. | 2,031,375 | 54,421 | |
The Brink's Co. | 464,740 | 10,866 | |
Waste Management, Inc. | 599,400 | 19,211 | |
| 153,843 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Construction & Engineering - 0.4% | |||
Fluor Corp. | 297,100 | $ 13,471 | |
Great Lakes Dredge & Dock Corp. | 429,400 | 2,538 | |
| 16,009 | ||
Electrical Equipment - 1.8% | |||
Baldor Electric Co. | 404,900 | 9,993 | |
Belden, Inc. | 1,270,366 | 29,002 | |
EnerSys (a) | 253,502 | 4,941 | |
General Cable Corp. (a)(e) | 441,500 | 12,848 | |
Harbin Electric, Inc. (a)(e) | 548,369 | 9,311 | |
JA Solar Holdings Co. Ltd. ADR (a)(e) | 839,500 | 3,610 | |
Polypore International, Inc. (a) | 548,400 | 7,365 | |
SunPower Corp. Class B (a) | 178,606 | 3,317 | |
| 80,387 | ||
Industrial Conglomerates - 0.7% | |||
Carlisle Companies, Inc. | 109,910 | 3,684 | |
General Electric Co. | 1,103,883 | 17,750 | |
Textron, Inc. | 550,200 | 10,745 | |
| 32,179 | ||
Machinery - 2.6% | |||
Accuride Corp. (a) | 1,384,197 | 692 | |
Badger Meter, Inc. | 228,561 | 8,637 | |
Cummins, Inc. | 491,100 | 22,178 | |
Ingersoll-Rand Co. Ltd. | 849,600 | 27,578 | |
Middleby Corp. (a) | 665,379 | 29,982 | |
Mueller Water Products, Inc. Class A | 1,367,200 | 6,166 | |
The Stanley Works | 109,000 | 5,586 | |
Thermadyne Holdings Corp. (a) | 64,900 | 507 | |
Timken Co. | 464,948 | 10,419 | |
| 111,745 | ||
Marine - 0.6% | |||
Diana Shipping, Inc. (a) | 277,900 | 3,685 | |
Genco Shipping & Trading Ltd. (a)(e) | 380,323 | 7,287 | |
Navios Maritime Holdings, Inc. | 2,162,794 | 13,539 | |
OceanFreight, Inc. (a)(e) | 740,600 | 615 | |
| 25,126 | ||
Road & Rail - 0.9% | |||
Avis Budget Group, Inc. (a) | 830,314 | 8,984 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Road & Rail - continued | |||
CSX Corp. | 109,400 | $ 4,689 | |
Hertz Global Holdings, Inc. (a)(e) | 2,598,600 | 26,921 | |
| 40,594 | ||
Trading Companies & Distributors - 0.2% | |||
H&E Equipment Services, Inc. (a) | 12,900 | 137 | |
Houston Wire & Cable Co. (e) | 656,176 | 7,894 | |
| 8,031 | ||
TOTAL INDUSTRIALS | 748,298 | ||
INFORMATION TECHNOLOGY - 10.2% | |||
Communications Equipment - 0.2% | |||
CommScope, Inc. (a) | 403,154 | 10,970 | |
Electronic Equipment & Components - 2.8% | |||
Avnet, Inc. (a) | 298,600 | 7,895 | |
Bell Microproducts, Inc. (a) | 623,761 | 2,819 | |
DDi Corp. (a) | 295,899 | 1,276 | |
Flextronics International Ltd. (a) | 13,661,463 | 86,614 | |
Merix Corp. (a)(f) | 1,545,123 | 3,724 | |
TTM Technologies, Inc. (a) | 1,402,619 | 14,517 | |
Viasystems Group, Inc. (a) | 775,300 | 2,326 | |
Viasystems Group, Inc. (a)(j) | 625,780 | 1,877 | |
| 121,048 | ||
Internet Software & Services - 0.2% | |||
NetEase.com, Inc. sponsored ADR (a) | 191,500 | 6,281 | |
VeriSign, Inc. (a) | 194,300 | 4,451 | |
| 10,732 | ||
IT Services - 1.5% | |||
Alliance Data Systems Corp. (a)(e) | 815,827 | 48,509 | |
CACI International, Inc. Class A (a) | 248,000 | 11,897 | |
Cognizant Technology Solutions Corp. Class A (a) | 56,200 | 2,454 | |
SAIC, Inc. (a) | 236,300 | 4,331 | |
| 67,191 | ||
Semiconductors & Semiconductor Equipment - 5.4% | |||
Amkor Technology, Inc. (a)(e) | 5,242,218 | 29,828 | |
Cypress Semiconductor Corp. (a) | 651,200 | 6,545 | |
Fairchild Semiconductor International, Inc. (a) | 548,500 | 4,926 | |
Intel Corp. | 693,100 | 13,446 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Semiconductors & Semiconductor Equipment - continued | |||
Micron Technology, Inc. (a) | 1,645,200 | $ 14,346 | |
ON Semiconductor Corp. (a)(f) | 23,079,802 | 166,395 | |
| 235,486 | ||
Software - 0.1% | |||
Nuance Communications, Inc. (a) | 163,600 | 2,457 | |
TOTAL INFORMATION TECHNOLOGY | 447,884 | ||
MATERIALS - 10.2% | |||
Chemicals - 7.4% | |||
Albemarle Corp. | 1,163,406 | 41,557 | |
Arch Chemicals, Inc. | 344,342 | 9,628 | |
Celanese Corp. Class A | 4,405,700 | 128,206 | |
Dow Chemical Co. | 877,494 | 23,771 | |
Ferro Corp. | 722,400 | 5,606 | |
FMC Corp. | 178,600 | 9,098 | |
Georgia Gulf Corp. (a) | 173,861 | 2,669 | |
H.B. Fuller Co. | 1,582,241 | 31,676 | |
Nalco Holding Co. | 894,300 | 21,088 | |
Phosphate Holdings, Inc. (a) | 307,500 | 3,690 | |
Pliant Corp. (a) | 567 | 0 | |
Solutia, Inc. (a) | 496,600 | 6,828 | |
W.R. Grace & Co. (a) | 1,601,519 | 38,244 | |
| 322,061 | ||
Containers & Packaging - 0.6% | |||
Owens-Illinois, Inc. (a) | 421,000 | 11,460 | |
Rock-Tenn Co. Class A | 355,202 | 15,164 | |
| 26,624 | ||
Metals & Mining - 1.8% | |||
AngloGold Ashanti Ltd. sponsored ADR | 250,500 | 8,940 | |
Compass Minerals International, Inc. | 258,500 | 16,296 | |
Freeport-McMoRan Copper & Gold, Inc. | 521,709 | 34,793 | |
Ormet Corp. (a) | 330,000 | 1,155 | |
Ormet Corp. (a)(j) | 1,075,000 | 3,763 | |
Teck Resources Ltd. Class B (sub. vtg.) (a) | 417,300 | 13,663 | |
| 78,610 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Paper & Forest Products - 0.4% | |||
Domtar Corp. (a) | 230,241 | $ 11,183 | |
Neenah Paper, Inc. | 518,300 | 7,215 | |
| 18,398 | ||
TOTAL MATERIALS | 445,693 | ||
TELECOMMUNICATION SERVICES - 3.0% | |||
Diversified Telecommunication Services - 0.8% | |||
Level 3 Communications, Inc. (a) | 2,000,000 | 2,780 | |
PAETEC Holding Corp. (a) | 2,980,233 | 9,447 | |
Qwest Communications International, Inc. | 4,637,500 | 19,524 | |
tw telecom, inc. (a) | 332,497 | 5,124 | |
| 36,875 | ||
Wireless Telecommunication Services - 2.2% | |||
Crown Castle International Corp. (a) | 1,036,011 | 38,270 | |
Sprint Nextel Corp. (a) | 5,692,987 | 18,673 | |
Syniverse Holdings, Inc. (a) | 2,244,438 | 37,729 | |
| 94,672 | ||
TOTAL TELECOMMUNICATION SERVICES | 131,547 | ||
UTILITIES - 4.2% | |||
Gas Utilities - 0.3% | |||
ONEOK, Inc. | 317,600 | 13,400 | |
Independent Power Producers & Energy Traders - 3.9% | |||
AES Corp. | 10,901,923 | 137,691 | |
Calpine Corp. (a) | 1,995,200 | 21,847 | |
NRG Energy, Inc. (a) | 457,528 | 11,031 | |
| 170,569 | ||
TOTAL UTILITIES | 183,969 | ||
TOTAL COMMON STOCKS (Cost $4,263,768) | 4,071,877 | ||
Preferred Stocks - 0.4% | |||
Shares | Value (000s) | ||
Convertible Preferred Stocks - 0.3% | |||
ENERGY - 0.3% | |||
Oil, Gas & Consumable Fuels - 0.3% | |||
El Paso Corp. 4.99% | 11,200 | $ 10,526 | |
Nonconvertible Preferred Stocks - 0.1% | |||
CONSUMER STAPLES - 0.1% | |||
Personal Products - 0.1% | |||
Revlon, Inc. Series A 12.75% | 639,576 | 3,684 | |
FINANCIALS - 0.0% | |||
Diversified Financial Services - 0.0% | |||
GMAC, Inc. 7.00% (g) | 944 | 670 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 4,354 | ||
TOTAL PREFERRED STOCKS (Cost $16,979) | 14,880 |
Nonconvertible Bonds - 2.9% | ||||
| Principal Amount (000s) |
| ||
CONSUMER DISCRETIONARY - 0.9% | ||||
Automobiles - 0.7% | ||||
General Motors Corp.: | ||||
6.75% 5/1/28 (c) | $ 3,075 | 815 | ||
7.125% 7/15/13 (c) | 8,320 | 2,246 | ||
7.2% 1/15/11 (c) | 22,980 | 5,975 | ||
8.25% 7/15/23 (c) | 25,035 | 6,947 | ||
8.375% 7/15/33 (c) | 39,290 | 11,001 | ||
8.8% 3/1/21 (c) | 10,765 | 2,853 | ||
| 29,837 | |||
Hotels, Restaurants & Leisure - 0.1% | ||||
Station Casinos, Inc.: | ||||
6% 4/1/12 (c) | 8,360 | 1,421 | ||
7.75% 8/15/16 (c) | 9,380 | 1,665 | ||
| 3,086 | |||
Nonconvertible Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | ||||
Media - 0.1% | ||||
Umbrella Acquisition, Inc. 10.5% 3/15/15 pay-in-kind (d)(g) | $ 5,662 | $ 4,757 | ||
TOTAL CONSUMER DISCRETIONARY | 37,680 | |||
CONSUMER STAPLES - 0.0% | ||||
Food Products - 0.0% | ||||
Smithfield Foods, Inc. 7.75% 7/1/17 | 805 | 753 | ||
ENERGY - 0.3% | ||||
Oil, Gas & Consumable Fuels - 0.3% | ||||
El Paso Energy Corp.: | ||||
7.75% 1/15/32 | 8,985 | 8,930 | ||
7.8% 8/1/31 | 1,960 | 1,931 | ||
| 10,861 | |||
FINANCIALS - 0.3% | ||||
Consumer Finance - 0.3% | ||||
GMAC LLC 8% 12/31/18 | 13,924 | 12,949 | ||
INDUSTRIALS - 0.0% | ||||
Airlines - 0.0% | ||||
Delta Air Lines, Inc. 8% 12/15/07 (a)(g) | 4,145 | 41 | ||
Northwest Airlines, Inc. 9.875% 3/15/07 (a) | 7,000 | 53 | ||
| 94 | |||
INFORMATION TECHNOLOGY - 0.3% | ||||
Semiconductors & Semiconductor Equipment - 0.3% | ||||
Freescale Semiconductor, Inc. 10.125% 12/15/16 | 2,730 | 2,157 | ||
NXP BV: | ||||
7.875% 10/15/14 | 4,362 | 3,882 | ||
10% 7/15/13 (g) | 1,655 | 1,721 | ||
Viasystems, Inc. 12% 1/15/15 (g) | 6,360 | 6,837 | ||
| 14,597 | |||
TELECOMMUNICATION SERVICES - 1.1% | ||||
Diversified Telecommunication Services - 0.5% | ||||
Sprint Capital Corp.: | ||||
6.875% 11/15/28 | 14,800 | 11,618 | ||
6.9% 5/1/19 | 10,410 | 9,265 | ||
| 20,883 | |||
Nonconvertible Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
TELECOMMUNICATION SERVICES - continued | ||||
Wireless Telecommunication Services - 0.6% | ||||
Nextel Communications, Inc. 7.375% 8/1/15 | $ 16,405 | $ 14,806 | ||
Sprint Nextel Corp. 6% 12/1/16 | 15,340 | 13,346 | ||
| 28,152 | |||
TOTAL TELECOMMUNICATION SERVICES | 49,035 | |||
TOTAL NONCONVERTIBLE BONDS (Cost $84,206) | 125,969 | |||
Floating Rate Loans - 2.0% | ||||
| ||||
CONSUMER DISCRETIONARY - 0.3% | ||||
Hotels, Restaurants & Leisure - 0.1% | ||||
Venetian Macau Ltd.: | ||||
Tranche B, term loan 4.76% 5/26/13 (h) | 1,185 | 1,119 | ||
Tranche DD, term loan 4.76% 5/26/12 (h) | 684 | 647 | ||
| 1,766 | |||
Media - 0.2% | ||||
Univision Communications, Inc. Tranche 1LN, term loan 2.5006% 9/29/14 (h) | 10,870 | 9,348 | ||
TOTAL CONSUMER DISCRETIONARY | 11,114 | |||
INDUSTRIALS - 0.3% | ||||
Airlines - 0.3% | ||||
Delta Air Lines, Inc. Tranche 2LN, term loan 3.5013% 4/30/14 (h) | 17,208 | 15,014 | ||
INFORMATION TECHNOLOGY - 0.7% | ||||
Semiconductors & Semiconductor Equipment - 0.7% | ||||
Freescale Semiconductor, Inc. term loan: | ||||
1.9809% 12/1/13 (h) | 22,598 | 20,281 | ||
12.5% 12/15/14 | 9,900 | 10,197 | ||
| 30,478 | |||
Floating Rate Loans - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
MATERIALS - 0.3% | ||||
Chemicals - 0.3% | ||||
Lyondell Chemical Co. term loan 5.798% 12/20/13 (h) | $ 12,055 | $ 8,680 | ||
Solutia, Inc. term loan 7.25% 2/28/14 (h) | 3,236 | 3,297 | ||
| 11,977 | |||
TELECOMMUNICATION SERVICES - 0.3% | ||||
Diversified Telecommunication Services - 0.3% | ||||
FairPoint Communications, Inc. Tranche B, term loan 3/31/15 (c)(h) | 8,250 | 6,229 | ||
Level 3 Financing, Inc. term loan 2.5013% 3/13/14 (h) | 10,000 | 9,013 | ||
| 15,242 | |||
UTILITIES - 0.1% | ||||
Electric Utilities - 0.1% | ||||
Texas Competitive Electric Holdings Co. LLC/Texas Competitive Electric Holdings Finance, Inc. Tranche B2, term loan 3.7315% 10/10/14 (h) | 5,736 | 4,689 | ||
TOTAL FLOATING RATE LOANS (Cost $70,164) | 88,514 |
Money Market Funds - 5.4% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.17% (i) | 93,276,409 | 93,276 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(i) | 144,644,075 | 144,644 | |
TOTAL MONEY MARKET FUNDS (Cost $237,920) | 237,920 |
Other - 0.0% | ||||
|
|
| ||
Delta Air Lines ALPA Claim (a) | 64,750,000 | $ 405 |
TOTAL INVESTMENT PORTFOLIO - 103.5% (Cost $4,673,556) | 4,539,565 | ||
NET OTHER ASSETS - (3.5)% | (152,122) | ||
NET ASSETS - 100% | $ 4,387,443 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Non-income producing - Issuer is in default. |
(d) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end. |
(e) Security or a portion of the security is on loan at period end. |
(f) Affiliated company |
(g) 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 $14,026,000 or 0.3% of net assets. |
(h) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(i) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(j) 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 $5,640,000 or 0.1% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Ormet Corp. | 2/27/07 - 4/4/07 | $ 20,556 |
Viasystems Group, Inc. | 2/13/04 | $ 12,594 |
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 | $ 225 |
Fidelity Securities Lending Cash Central Fund | 156 |
Total | $ 381 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliates | Value, | Purchases | Sales | Dividend | Value, |
Cenveo, Inc. | $ 18,636 | $ - | $ - | $ - | $ 27,857 |
Gray Television, Inc. | 978 | 954 | - | - | 4,755 |
Merix Corp. | 2,766 | - | - | - | 3,724 |
ON Semiconductor Corp. | 168,477 | - | - | - | 166,395 |
Service Corp. International | 110,637 | 3,332 | - | 1,419 | 137,810 |
Tenet Healthcare Corp. | 103,351 | - | 24,404 | - | - |
Total | $ 404,845 | $ 4,286 | $ 24,404 | $ 1,419 | $ 340,541 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 554,501 | $ 554,501 | $ - | $ - |
Consumer Staples | 104,022 | 100,338 | - | 3,684 |
Energy | 622,122 | 599,425 | 22,697 | - |
Financials | 545,577 | 544,907 | 670 | - |
Health Care | 303,144 | 303,144 | - | - |
Industrials | 748,298 | 748,298 | - | - |
Information Technology | 447,884 | 443,681 | - | 4,203 |
Materials | 445,693 | 445,693 | - | - |
Telecommunication Services | 131,547 | 131,547 | - | - |
Utilities | 183,969 | 183,969 | - | - |
Corporate Bonds | 125,969 | - | 125,875 | 94 |
Floating Rate Loans | 88,514 | - | 88,514 | - |
Money Market Funds | 237,920 | 237,920 | - | - |
Other | 405 | - | - | 405 |
Total Investments in Securities: | $ 4,539,565 | $ 4,293,423 | $ 237,756 | $ 8,386 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) |
|
Investments in Securities: | |
Beginning Balance | $ 2,534 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 3,088 |
Cost of Purchases | 3,684 |
Proceeds of Sales | (5) |
Amortization/Accretion | - |
Transfers in/out of Level 3 | (915) |
Ending Balance | $ 8,386 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2010 | $ 2,726 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $297,190,000 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $858,385,000 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $137,484) - See accompanying schedule: Unaffiliated issuers (cost $4,071,350) | $ 3,961,104 |
|
Fidelity Central Funds (cost $237,920) | 237,920 |
|
Other affiliated issuers (cost $364,286) | 340,541 |
|
Total Investments (cost $4,673,556) |
| $ 4,539,565 |
Receivable for investments sold | 25,983 | |
Receivable for fund shares sold | 3,646 | |
Dividends receivable | 1,017 | |
Interest receivable | 2,278 | |
Distributions receivable from Fidelity Central Funds | 38 | |
Prepaid expenses | 17 | |
Other receivables | 54 | |
Total assets | 4,572,598 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 28,640 | |
Payable for fund shares redeemed | 8,522 | |
Accrued management fee | 2,374 | |
Other affiliated payables | 945 | |
Other payables and accrued expenses | 30 | |
Collateral on securities loaned, at value | 144,644 | |
Total liabilities | 185,155 | |
|
|
|
Net Assets | $ 4,387,443 | |
Net Assets consist of: |
| |
Paid in capital | $ 5,643,960 | |
Undistributed net investment income | 7,875 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (1,130,398) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (133,994) | |
Net Assets | $ 4,387,443 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | January 31, 2010 (Unaudited) | |
|
|
|
Leveraged Company Stock: | $ 22.32 | |
|
|
|
Class K: | $ 22.32 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended January 31, 2010 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends (including $1,419 earned from other affiliated issuers) |
| $ 15,981 |
Interest |
| 13,234 |
Income from Fidelity Central Funds |
| 381 |
Total income |
| 29,596 |
|
|
|
Expenses | ||
Management fee | $ 13,525 | |
Transfer agent fees | 5,172 | |
Accounting and security lending fees | 627 | |
Custodian fees and expenses | 29 | |
Independent trustees' compensation | 13 | |
Registration fees | 65 | |
Audit | 34 | |
Legal | 26 | |
Miscellaneous | 41 | |
Total expenses before reductions | 19,532 | |
Expense reductions | (144) | 19,388 |
Net investment income (loss) | 10,208 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 66,793 | |
Other affiliated issuers | 11,344 |
|
Foreign currency transactions | (19) | |
Capital gain distributions from Fidelity Central Funds | 6 | |
Total net realized gain (loss) |
| 78,124 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 496,972 | |
Assets and liabilities in foreign currencies | (17) | |
Total change in net unrealized appreciation (depreciation) |
| 496,955 |
Net gain (loss) | 575,079 | |
Net increase (decrease) in net assets resulting from operations | $ 585,287 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 10,208 | $ 46,155 |
Net realized gain (loss) | 78,124 | (1,210,936) |
Change in net unrealized appreciation (depreciation) | 496,955 | (1,921,072) |
Net increase (decrease) in net assets resulting | 585,287 | (3,085,853) |
Distributions to shareholders from net investment income | (23,690) | (31,749) |
Distributions to shareholders from net realized gain | - | (63,967) |
Total distributions | (23,690) | (95,716) |
Share transactions - net increase (decrease) | (155,378) | (872,099) |
Redemption fees | 352 | 2,433 |
Total increase (decrease) in net assets | 406,571 | (4,051,235) |
|
|
|
Net Assets | ||
Beginning of period | 3,980,872 | 8,032,107 |
End of period (including undistributed net investment income of $7,875 and undistributed net investment income of $21,357, respectively) | $ 4,387,443 | $ 3,980,872 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Leveraged Company Stock
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 19.55 | $ 31.09 | $ 33.78 | $ 28.07 | $ 25.48 | $ 20.18 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .05 | .21 | .14 | .44 G | .16 | .24 H |
Net realized and unrealized gain (loss) | 2.83 | (11.37) | (1.06) | 6.78 | 3.04 | 6.21 |
Total from investment operations | 2.88 | (11.16) | (.92) | 7.22 | 3.20 | 6.45 |
Distributions from net investment income | (.11) | (.14) | (.39) | (.12) | (.21) | (.04) |
Distributions from net realized gain | - | (.25) | (1.39) | (1.40) | (.41) | (1.12) |
Total distributions | (.11) | (.39) | (1.78) | (1.52) | (.62) | (1.16) |
Redemption fees added to paid in capital D | - J | .01 | .01 | .01 | .01 | .01 |
Net asset value, end of period | $ 22.32 | $ 19.55 | $ 31.09 | $ 33.78 | $ 28.07 | $ 25.48 |
Total Return B, C | 14.77% | (35.99)% | (2.76)% | 27.08% | 12.80% | 33.93% |
Ratios to Average Net Assets E, I |
|
|
|
|
| |
Expenses before reductions | .90% A | .92% | .83% | .83% | .86% | .87% |
Expenses net of fee waivers, if any | .90% A | .92% | .83% | .83% | .86% | .87% |
Expenses net of all reductions | .89% A | .92% | .83% | .83% | .85% | .84% |
Net investment income (loss) | .45% A | 1.17% | .44% | 1.43% G | .60% | 1.04% H |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 4,023 | $ 3,714 | $ 8,032 | $ 7,830 | $ 4,174 | $ 3,328 |
Portfolio turnover rate F | 24% A | 34% | 30% | 20% | 23% | 16% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.26 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .59%. H Investment income per share reflects an in-kind dividend received in a corporate reorganization which amounted to $.10 per share. Excluding this dividend, the ratio of net investment income (loss) to average net assets would have been .61%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended | Years ended July 31, | |
(Unaudited) | 2009 | 2008 G | |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 19.56 | $ 31.11 | $ 34.10 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | .07 | .21 | .05 |
Net realized and unrealized gain (loss) | 2.84 | (11.35) | (3.04) |
Total from investment operations | 2.91 | (11.14) | (2.99) |
Distributions from net investment income | (.15) | (.17) | - |
Distributions from net realized gain | - | (.25) | - |
Total distributions | (.15) | (.42) | - |
Redemption fees added to paid in capital D | - I | .01 | - I |
Net asset value, end of period | $ 22.32 | $ 19.56 | $ 31.11 |
Total Return B, C | 14.92% | (35.86)% | (8.77)% |
Ratios to Average Net Assets E, H |
|
|
|
Expenses before reductions | .70% A | .71% | .70% A |
Expenses net of fee waivers, if any | .70% A | .71% | .70% A |
Expenses net of all reductions | .70% A | .71% | .70% A |
Net investment income (loss) | .64% A | 1.39% | .58% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 364,386 | $ 267,351 | $ 91 |
Portfolio turnover rate F | 24% A | 34% | 30% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Leveraged Company Stock Fund (the Fund) is a fund of Fidelity Securities Fund (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 Leveraged Company Stock and Class K 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 commencement of Class K, the Fund began offering conversion privileges between Leveraged Company Stock and Class K to eligible shareholders of Leveraged Company Stock. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds and floating rate loans, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, market discount, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 776,447 |
Gross unrealized depreciation | (957,222) |
Net unrealized appreciation (depreciation) | $ (180,775) |
|
|
Tax cost | $ 4,720,340 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the Fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $491,416 and $606,073, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .35%
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .61% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Leveraged Company Stock. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Leveraged Company Stock | $ 5,073 | .25 |
Class K | 99 | .06 |
| $ 5,172 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $59 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $8 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $156.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $144 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Leveraged Company Stock | $ 21,247 | $ 30,127 |
Class K | 2,443 | 1,622 |
Total | $ 23,690 | $ 31,749 |
From net realized gain |
|
|
Leveraged Company Stock | $ - | $ 63,966 |
Class K | - | 1 |
Total | $ - | $ 63,967 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Leveraged Company Stock |
|
|
|
|
Shares sold | 19,138 | 52,607 | $ 419,457 | $ 972,232 |
Conversion to Class K | (2,316) | (12,957) | (48,185) | (289,406) |
Reinvestment of distributions | 940 | 3,995 | 20,361 | 89,681 |
Shares redeemed | (27,456) | (112,023) | (603,507) | (1,955,126) |
Net increase (decrease) | (9,694) | (68,378) | $ (211,874) | $ (1,182,619) |
Class K |
|
|
|
|
Shares sold | 2,553 | 6,741 | $ 56,707 | $ 105,087 |
Conversion from Leveraged Company Stock | 2,315 | 12,954 | 48,185 | 289,406 |
Reinvestment of distributions | 113 | 118 | 2,443 | 1,623 |
Shares redeemed | (2,318) | (6,151) | (50,839) | (85,596) |
Net increase (decrease) | 2,663 | 13,662 | $ 56,496 | $ 310,520 |
A Conversion transactions for Class K and Leveraged Company Stock are for the period August 1, 2009 through August 31, 2009.
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
Arizona
7001 West Ray Road
Chandler, AZ
15445 N. Scottsdale Road
Scottsdale, AZ
17550 North 75th Avenue
Glendale, AZ
5330 E. Broadway Blvd
Tucson, AZ
California
815 East Birch Street
Brea, CA
1411 Chapin Avenue
Burlingame, CA
851 East Hamilton Avenue
Campbell, CA
601 Larkspur Landing Circle
Larkspur, CA
2000 Avenue of the Stars
Los Angeles, CA
27101 Puerta Real
Mission Viejo, CA
73575 El Paseo
Palm Desert, CA
251 University Avenue
Palo Alto, CA
123 South Lake Avenue
Pasadena, CA
16656 Bernardo Ctr. Drive
Rancho Bernardo, CA
1220 Roseville Parkway
Roseville, CA
1740 Arden Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
11943 El Camino Real
San Diego, CA
8 Montgomery Street
San Francisco, CA
3793 State Street
Santa Barbara, CA
1200 Wilshire Boulevard
Santa Monica, CA
398 West El Camino Real
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111 South Westlake Blvd
Thousand Oaks, CA
21701 Hawthorne Boulevard
Torrance, CA
2001 North Main Street
Walnut Creek, CA
6326 Canoga Avenue
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2211 Michelson Drive
Irvine, CA
Colorado
281 East Flatiron Circle
Broomfield, CO
1625 Broadway
Denver, CO
9185 Westview Road
Lone Tree, CO
Connecticut
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
1261 Post Road
Fairfield, CT
Delaware
400 Delaware Avenue
Wilmington, DE
Florida
175 East Altamonte Drive
Altamonte Springs, FL
1400 Glades Road
Boca Raton, FL
121 Alhambra Plaza
Coral Gables, FL
2948 N. Federal Highway
Ft. Lauderdale, FL
4671 Town Center Parkway
Jacksonville, FL
8880 Tamiami Trail, North
Naples, FL
230 Royal Palm Way
Palm Beach, FL
3501 PGA Boulevard
Palm Beach Gardens, FL
3550 Tamiami Trail, South
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
2465 State Road 7
Wellington, FL
Georgia
3242 Peachtree Road
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
Illinois
One North LaSalle Street
Chicago, IL
401 North Michigan Avenue
Chicago, IL
One Skokie Valley Road
Highland Park, IL
1415 West 22nd Street
Oak Brook, IL
15105 S LaGrange Road
Orland Park, IL
1572 East Golf Road
Schaumburg, IL
1823 Freedom Drive
Naperville, IL
Indiana
8480 Keystone Crossing
Indianapolis, IN
Kansas
5400 College Boulevard
Overland Park, KS
Maine
Three Canal Plaza
Portland, ME
Maryland
7315 Wisconsin Avenue
Bethesda, MD
610 York Road
Towson, MD
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Semiannual Report
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Semiannual Report
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LSF-USAN-0310 1.789286.107
Fidelity®
Leveraged Company Stock
Fund -
Class K
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the last six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management 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 (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
|
|
| Expenses Paid |
Leveraged Company Stock | .90% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,147.70 | $ 4.87 |
Hypothetical A |
| $ 1,000.00 | $ 1,020.67 | $ 4.58 |
Class K | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,149.20 | $ 3.79 |
Hypothetical A |
| $ 1,000.00 | $ 1,021.68 | $ 3.57 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
ON Semiconductor Corp. | 3.8 | 4.2 |
Service Corp. International | 3.2 | 2.8 |
AES Corp. | 3.1 | 3.5 |
Celanese Corp. Class A | 2.9 | 3.0 |
Peabody Energy Corp. | 2.8 | 2.4 |
Tenet Healthcare Corp. | 2.8 | 2.6 |
PNC Financial Services Group, Inc. | 2.7 | 2.1 |
El Paso Corp. | 2.6 | 3.3 |
Owens Corning | 2.2 | 2.3 |
KeyCorp | 2.0 | 1.8 |
| 28.1 | |
Top Five Market Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Industrials | 17.4 | 15.3 |
Energy | 14.5 | 15.4 |
Consumer Discretionary | 13.8 | 11.6 |
Financials | 12.7 | 13.1 |
Information Technology | 11.2 | 11.1 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks 92.9% |
| ![]() | Stocks 88.5% |
| ||
![]() | Bonds 2.9% |
| ![]() | Bonds 5.4% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Other Investments 2.0% |
| ![]() | Other Investments 2.1% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 5.9% |
| ** Foreign investments | 6.0% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 92.8% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.6% | |||
Auto Components - 0.9% | |||
Johnson Controls, Inc. | 548,300 | $ 15,259 | |
The Goodyear Tire & Rubber Co. (a) | 564,063 | 7,525 | |
TRW Automotive Holdings Corp. (a) | 430,300 | 9,910 | |
WABCO Holdings, Inc. | 211,533 | 5,468 | |
| 38,162 | ||
Automobiles - 0.2% | |||
Daimler AG | 209,400 | 9,593 | |
Diversified Consumer Services - 3.6% | |||
Brinks Home Security Holdings, Inc. (a) | 244,500 | 10,025 | |
Carriage Services, Inc. (a) | 266,200 | 1,025 | |
Service Corp. International (f) | 17,967,393 | 137,810 | |
Stewart Enterprises, Inc. Class A | 1,515,242 | 7,682 | |
| 156,542 | ||
Hotels, Restaurants & Leisure - 1.4% | |||
Bally Technologies, Inc. (a) | 198,560 | 7,877 | |
Burger King Holdings, Inc. | 108,900 | 1,899 | |
Domino's Pizza, Inc. (a) | 942,184 | 10,647 | |
Las Vegas Sands Corp. (a)(e) | 995,011 | 15,423 | |
Penn National Gaming, Inc. (a) | 537,836 | 14,511 | |
The Steak n Shake Co. (a) | 32,970 | 10,591 | |
Wendy's/Arby's Group, Inc. | 546,800 | 2,521 | |
| 63,469 | ||
Household Durables - 2.7% | |||
Black & Decker Corp. | 331,700 | 21,448 | |
Harman International Industries, Inc. | 1,005,606 | 35,749 | |
Lennar Corp. Class A | 983,400 | 15,105 | |
Newell Rubbermaid, Inc. | 3,304,500 | 44,842 | |
| 117,144 | ||
Leisure Equipment & Products - 0.4% | |||
Callaway Golf Co. (e) | 2,514,010 | 18,755 | |
Media - 2.2% | |||
Cablevision Systems Corp. - NY Group Class A | 541,324 | 13,880 | |
Cinemark Holdings, Inc. | 1,554,497 | 22,043 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Media - continued | |||
Comcast Corp. Class A | 3,153,000 | $ 49,912 | |
Gray Television, Inc. (a)(f) | 2,401,344 | 4,755 | |
Nexstar Broadcasting Group, Inc. Class A (a) | 1,130,500 | 5,178 | |
| 95,768 | ||
Specialty Retail - 0.6% | |||
Asbury Automotive Group, Inc. (a) | 385,122 | 4,263 | |
Gamestop Corp. Class A (a)(e) | 544,600 | 10,767 | |
Sally Beauty Holdings, Inc. (a) | 300,000 | 2,502 | |
The Pep Boys - Manny, Moe & Jack | 996,671 | 8,322 | |
| 25,854 | ||
Textiles, Apparel & Luxury Goods - 0.6% | |||
Coach, Inc. | 314,020 | 10,953 | |
Deckers Outdoor Corp. (a) | 54,423 | 5,343 | |
Hanesbrands, Inc. (a) | 562,400 | 12,918 | |
| 29,214 | ||
TOTAL CONSUMER DISCRETIONARY | 554,501 | ||
CONSUMER STAPLES - 2.3% | |||
Food & Staples Retailing - 1.1% | |||
Rite Aid Corp. (a)(e) | 16,497,982 | 22,437 | |
Safeway, Inc. | 310,100 | 6,962 | |
SUPERVALU, Inc. | 645,700 | 9,498 | |
Whole Foods Market, Inc. (a) | 335,200 | 9,124 | |
| 48,021 | ||
Food Products - 1.1% | |||
Corn Products International, Inc. | 281,534 | 8,001 | |
Darling International, Inc. (a) | 2,498,930 | 19,467 | |
Dean Foods Co. (a) | 569,900 | 10,047 | |
Smithfield Foods, Inc. (a) | 559,606 | 8,428 | |
| 45,943 | ||
Personal Products - 0.1% | |||
Revlon, Inc. (a) | 413,621 | 6,374 | |
TOTAL CONSUMER STAPLES | 100,338 | ||
ENERGY - 13.9% | |||
Energy Equipment & Services - 2.7% | |||
Baker Hughes, Inc. | 218,000 | 9,871 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Energy Equipment & Services - continued | |||
Ensco International Ltd. ADR | 110,000 | $ 4,293 | |
Exterran Holdings, Inc. (a)(e) | 1,355,008 | 27,480 | |
Hercules Offshore, Inc. (a) | 1,493,431 | 5,824 | |
Noble Corp. | 524,700 | 21,156 | |
Oil States International, Inc. (a) | 270,700 | 9,973 | |
Parker Drilling Co. (a) | 1,200,000 | 5,772 | |
Pride International, Inc. (a) | 346,100 | 10,245 | |
Rowan Companies, Inc. (a) | 321,100 | 6,897 | |
Schlumberger Ltd. | 109,400 | 6,943 | |
Schoeller-Bleckmann Oilfield Equipment AG | 232,656 | 12,171 | |
Seahawk Drilling, Inc. (a) | 23,073 | 482 | |
| 121,107 | ||
Oil, Gas & Consumable Fuels - 11.2% | |||
Alpha Natural Resources, Inc. (a) | 725,938 | 29,480 | |
Arch Coal, Inc. | 688,255 | 14,502 | |
CONSOL Energy, Inc. | 327,200 | 15,251 | |
El Paso Corp. | 11,247,076 | 114,158 | |
Forest Oil Corp. (a) | 2,400,286 | 57,895 | |
Frontier Oil Corp. | 1,972,600 | 24,579 | |
Mariner Energy, Inc. (a) | 2,093,338 | 30,249 | |
Massey Energy Co. | 137,500 | 5,297 | |
Nexen, Inc. | 188,000 | 4,116 | |
Overseas Shipholding Group, Inc. (e) | 1,164,192 | 51,935 | |
Paladin Energy Ltd. (a) | 2,042,400 | 6,574 | |
Peabody Energy Corp. | 2,893,208 | 121,862 | |
Plains Exploration & Production Co. (a) | 360,660 | 12,028 | |
Western Refining, Inc. (a)(e) | 560,758 | 2,563 | |
| 490,489 | ||
TOTAL ENERGY | 611,596 | ||
FINANCIALS - 12.4% | |||
Capital Markets - 0.3% | |||
Morgan Stanley | 548,900 | 14,700 | |
Commercial Banks - 8.9% | |||
Huntington Bancshares, Inc. | 11,363,080 | 54,429 | |
KeyCorp | 12,378,768 | 88,880 | |
PNC Financial Services Group, Inc. | 2,146,975 | 119,007 | |
Regions Financial Corp. | 2,011,695 | 12,774 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
SunTrust Banks, Inc. | 2,549,800 | $ 62,037 | |
Wells Fargo & Co. | 1,871,088 | 53,195 | |
| 390,322 | ||
Diversified Financial Services - 2.0% | |||
Bank of America Corp. | 5,686,100 | 86,315 | |
CIT Group, Inc. (a) | 72,485 | 2,306 | |
| 88,621 | ||
Insurance - 0.6% | |||
Assured Guaranty Ltd. | 870,995 | 19,737 | |
Lincoln National Corp. | 327,900 | 8,060 | |
| 27,797 | ||
Real Estate Investment Trusts - 0.3% | |||
Host Hotels & Resorts, Inc. | 1,016,122 | 10,771 | |
Thrifts & Mortgage Finance - 0.3% | |||
First Niagara Financial Group, Inc. | 851,444 | 11,690 | |
Washington Mutual, Inc. (a) | 5,352,200 | 1,006 | |
| 12,696 | ||
TOTAL FINANCIALS | 544,907 | ||
HEALTH CARE - 6.9% | |||
Biotechnology - 0.0% | |||
Lexicon Pharmaceuticals, Inc. (a) | 392,187 | 698 | |
Health Care Equipment & Supplies - 1.8% | |||
Beckman Coulter, Inc. | 304,200 | 19,886 | |
Boston Scientific Corp. (a) | 1,062,100 | 9,166 | |
Hospira, Inc. (a) | 578,358 | 29,288 | |
Inverness Medical Innovations, Inc. (a) | 518,708 | 20,940 | |
| 79,280 | ||
Health Care Providers & Services - 4.5% | |||
Community Health Systems, Inc. (a) | 555,276 | 18,113 | |
DaVita, Inc. (a) | 394,947 | 23,602 | |
Henry Schein, Inc. (a) | 54,400 | 2,940 | |
Laboratory Corp. of America Holdings (a) | 54,600 | 3,882 | |
RehabCare Group, Inc. (a) | 230,000 | 6,684 | |
Rural/Metro Corp. (a) | 834,200 | 4,605 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
Sun Healthcare Group, Inc. (a) | 1,642,522 | $ 14,356 | |
Tenet Healthcare Corp. (a) | 21,982,165 | 121,781 | |
| 195,963 | ||
Health Care Technology - 0.5% | |||
Cerner Corp. (a) | 276,209 | 20,895 | |
Pharmaceuticals - 0.1% | |||
Allergan, Inc. | 109,700 | 6,308 | |
TOTAL HEALTH CARE | 303,144 | ||
INDUSTRIALS - 17.1% | |||
Aerospace & Defense - 0.4% | |||
American Science & Engineering, Inc. | 85,370 | 6,628 | |
Teledyne Technologies, Inc. (a) | 340,694 | 12,694 | |
| 19,322 | ||
Air Freight & Logistics - 0.0% | |||
Park-Ohio Holdings Corp. (a) | 78,022 | 713 | |
Airlines - 2.2% | |||
AirTran Holdings, Inc. (a) | 1,779,700 | 8,578 | |
AMR Corp. (a) | 670,630 | 4,641 | |
Delta Air Lines, Inc. (a) | 6,363,193 | 77,822 | |
UAL Corp. (a) | 280,400 | 3,429 | |
| 94,470 | ||
Building Products - 3.8% | |||
Armstrong World Industries, Inc. (a) | 941,230 | 34,289 | |
Masco Corp. | 2,688,779 | 36,460 | |
Owens Corning (a) | 3,661,683 | 94,215 | |
Owens Corning warrants 10/31/13 (a) | 406,600 | 915 | |
| 165,879 | ||
Commercial Services & Supplies - 3.5% | |||
Cenveo, Inc. (a)(f) | 3,858,300 | 27,857 | |
Deluxe Corp. | 1,749,127 | 32,551 | |
R.R. Donnelley & Sons Co. | 450,900 | 8,937 | |
Republic Services, Inc. | 2,031,375 | 54,421 | |
The Brink's Co. | 464,740 | 10,866 | |
Waste Management, Inc. | 599,400 | 19,211 | |
| 153,843 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Construction & Engineering - 0.4% | |||
Fluor Corp. | 297,100 | $ 13,471 | |
Great Lakes Dredge & Dock Corp. | 429,400 | 2,538 | |
| 16,009 | ||
Electrical Equipment - 1.8% | |||
Baldor Electric Co. | 404,900 | 9,993 | |
Belden, Inc. | 1,270,366 | 29,002 | |
EnerSys (a) | 253,502 | 4,941 | |
General Cable Corp. (a)(e) | 441,500 | 12,848 | |
Harbin Electric, Inc. (a)(e) | 548,369 | 9,311 | |
JA Solar Holdings Co. Ltd. ADR (a)(e) | 839,500 | 3,610 | |
Polypore International, Inc. (a) | 548,400 | 7,365 | |
SunPower Corp. Class B (a) | 178,606 | 3,317 | |
| 80,387 | ||
Industrial Conglomerates - 0.7% | |||
Carlisle Companies, Inc. | 109,910 | 3,684 | |
General Electric Co. | 1,103,883 | 17,750 | |
Textron, Inc. | 550,200 | 10,745 | |
| 32,179 | ||
Machinery - 2.6% | |||
Accuride Corp. (a) | 1,384,197 | 692 | |
Badger Meter, Inc. | 228,561 | 8,637 | |
Cummins, Inc. | 491,100 | 22,178 | |
Ingersoll-Rand Co. Ltd. | 849,600 | 27,578 | |
Middleby Corp. (a) | 665,379 | 29,982 | |
Mueller Water Products, Inc. Class A | 1,367,200 | 6,166 | |
The Stanley Works | 109,000 | 5,586 | |
Thermadyne Holdings Corp. (a) | 64,900 | 507 | |
Timken Co. | 464,948 | 10,419 | |
| 111,745 | ||
Marine - 0.6% | |||
Diana Shipping, Inc. (a) | 277,900 | 3,685 | |
Genco Shipping & Trading Ltd. (a)(e) | 380,323 | 7,287 | |
Navios Maritime Holdings, Inc. | 2,162,794 | 13,539 | |
OceanFreight, Inc. (a)(e) | 740,600 | 615 | |
| 25,126 | ||
Road & Rail - 0.9% | |||
Avis Budget Group, Inc. (a) | 830,314 | 8,984 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Road & Rail - continued | |||
CSX Corp. | 109,400 | $ 4,689 | |
Hertz Global Holdings, Inc. (a)(e) | 2,598,600 | 26,921 | |
| 40,594 | ||
Trading Companies & Distributors - 0.2% | |||
H&E Equipment Services, Inc. (a) | 12,900 | 137 | |
Houston Wire & Cable Co. (e) | 656,176 | 7,894 | |
| 8,031 | ||
TOTAL INDUSTRIALS | 748,298 | ||
INFORMATION TECHNOLOGY - 10.2% | |||
Communications Equipment - 0.2% | |||
CommScope, Inc. (a) | 403,154 | 10,970 | |
Electronic Equipment & Components - 2.8% | |||
Avnet, Inc. (a) | 298,600 | 7,895 | |
Bell Microproducts, Inc. (a) | 623,761 | 2,819 | |
DDi Corp. (a) | 295,899 | 1,276 | |
Flextronics International Ltd. (a) | 13,661,463 | 86,614 | |
Merix Corp. (a)(f) | 1,545,123 | 3,724 | |
TTM Technologies, Inc. (a) | 1,402,619 | 14,517 | |
Viasystems Group, Inc. (a) | 775,300 | 2,326 | |
Viasystems Group, Inc. (a)(j) | 625,780 | 1,877 | |
| 121,048 | ||
Internet Software & Services - 0.2% | |||
NetEase.com, Inc. sponsored ADR (a) | 191,500 | 6,281 | |
VeriSign, Inc. (a) | 194,300 | 4,451 | |
| 10,732 | ||
IT Services - 1.5% | |||
Alliance Data Systems Corp. (a)(e) | 815,827 | 48,509 | |
CACI International, Inc. Class A (a) | 248,000 | 11,897 | |
Cognizant Technology Solutions Corp. Class A (a) | 56,200 | 2,454 | |
SAIC, Inc. (a) | 236,300 | 4,331 | |
| 67,191 | ||
Semiconductors & Semiconductor Equipment - 5.4% | |||
Amkor Technology, Inc. (a)(e) | 5,242,218 | 29,828 | |
Cypress Semiconductor Corp. (a) | 651,200 | 6,545 | |
Fairchild Semiconductor International, Inc. (a) | 548,500 | 4,926 | |
Intel Corp. | 693,100 | 13,446 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Semiconductors & Semiconductor Equipment - continued | |||
Micron Technology, Inc. (a) | 1,645,200 | $ 14,346 | |
ON Semiconductor Corp. (a)(f) | 23,079,802 | 166,395 | |
| 235,486 | ||
Software - 0.1% | |||
Nuance Communications, Inc. (a) | 163,600 | 2,457 | |
TOTAL INFORMATION TECHNOLOGY | 447,884 | ||
MATERIALS - 10.2% | |||
Chemicals - 7.4% | |||
Albemarle Corp. | 1,163,406 | 41,557 | |
Arch Chemicals, Inc. | 344,342 | 9,628 | |
Celanese Corp. Class A | 4,405,700 | 128,206 | |
Dow Chemical Co. | 877,494 | 23,771 | |
Ferro Corp. | 722,400 | 5,606 | |
FMC Corp. | 178,600 | 9,098 | |
Georgia Gulf Corp. (a) | 173,861 | 2,669 | |
H.B. Fuller Co. | 1,582,241 | 31,676 | |
Nalco Holding Co. | 894,300 | 21,088 | |
Phosphate Holdings, Inc. (a) | 307,500 | 3,690 | |
Pliant Corp. (a) | 567 | 0 | |
Solutia, Inc. (a) | 496,600 | 6,828 | |
W.R. Grace & Co. (a) | 1,601,519 | 38,244 | |
| 322,061 | ||
Containers & Packaging - 0.6% | |||
Owens-Illinois, Inc. (a) | 421,000 | 11,460 | |
Rock-Tenn Co. Class A | 355,202 | 15,164 | |
| 26,624 | ||
Metals & Mining - 1.8% | |||
AngloGold Ashanti Ltd. sponsored ADR | 250,500 | 8,940 | |
Compass Minerals International, Inc. | 258,500 | 16,296 | |
Freeport-McMoRan Copper & Gold, Inc. | 521,709 | 34,793 | |
Ormet Corp. (a) | 330,000 | 1,155 | |
Ormet Corp. (a)(j) | 1,075,000 | 3,763 | |
Teck Resources Ltd. Class B (sub. vtg.) (a) | 417,300 | 13,663 | |
| 78,610 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Paper & Forest Products - 0.4% | |||
Domtar Corp. (a) | 230,241 | $ 11,183 | |
Neenah Paper, Inc. | 518,300 | 7,215 | |
| 18,398 | ||
TOTAL MATERIALS | 445,693 | ||
TELECOMMUNICATION SERVICES - 3.0% | |||
Diversified Telecommunication Services - 0.8% | |||
Level 3 Communications, Inc. (a) | 2,000,000 | 2,780 | |
PAETEC Holding Corp. (a) | 2,980,233 | 9,447 | |
Qwest Communications International, Inc. | 4,637,500 | 19,524 | |
tw telecom, inc. (a) | 332,497 | 5,124 | |
| 36,875 | ||
Wireless Telecommunication Services - 2.2% | |||
Crown Castle International Corp. (a) | 1,036,011 | 38,270 | |
Sprint Nextel Corp. (a) | 5,692,987 | 18,673 | |
Syniverse Holdings, Inc. (a) | 2,244,438 | 37,729 | |
| 94,672 | ||
TOTAL TELECOMMUNICATION SERVICES | 131,547 | ||
UTILITIES - 4.2% | |||
Gas Utilities - 0.3% | |||
ONEOK, Inc. | 317,600 | 13,400 | |
Independent Power Producers & Energy Traders - 3.9% | |||
AES Corp. | 10,901,923 | 137,691 | |
Calpine Corp. (a) | 1,995,200 | 21,847 | |
NRG Energy, Inc. (a) | 457,528 | 11,031 | |
| 170,569 | ||
TOTAL UTILITIES | 183,969 | ||
TOTAL COMMON STOCKS (Cost $4,263,768) | 4,071,877 | ||
Preferred Stocks - 0.4% | |||
Shares | Value (000s) | ||
Convertible Preferred Stocks - 0.3% | |||
ENERGY - 0.3% | |||
Oil, Gas & Consumable Fuels - 0.3% | |||
El Paso Corp. 4.99% | 11,200 | $ 10,526 | |
Nonconvertible Preferred Stocks - 0.1% | |||
CONSUMER STAPLES - 0.1% | |||
Personal Products - 0.1% | |||
Revlon, Inc. Series A 12.75% | 639,576 | 3,684 | |
FINANCIALS - 0.0% | |||
Diversified Financial Services - 0.0% | |||
GMAC, Inc. 7.00% (g) | 944 | 670 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 4,354 | ||
TOTAL PREFERRED STOCKS (Cost $16,979) | 14,880 |
Nonconvertible Bonds - 2.9% | ||||
| Principal Amount (000s) |
| ||
CONSUMER DISCRETIONARY - 0.9% | ||||
Automobiles - 0.7% | ||||
General Motors Corp.: | ||||
6.75% 5/1/28 (c) | $ 3,075 | 815 | ||
7.125% 7/15/13 (c) | 8,320 | 2,246 | ||
7.2% 1/15/11 (c) | 22,980 | 5,975 | ||
8.25% 7/15/23 (c) | 25,035 | 6,947 | ||
8.375% 7/15/33 (c) | 39,290 | 11,001 | ||
8.8% 3/1/21 (c) | 10,765 | 2,853 | ||
| 29,837 | |||
Hotels, Restaurants & Leisure - 0.1% | ||||
Station Casinos, Inc.: | ||||
6% 4/1/12 (c) | 8,360 | 1,421 | ||
7.75% 8/15/16 (c) | 9,380 | 1,665 | ||
| 3,086 | |||
Nonconvertible Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | ||||
Media - 0.1% | ||||
Umbrella Acquisition, Inc. 10.5% 3/15/15 pay-in-kind (d)(g) | $ 5,662 | $ 4,757 | ||
TOTAL CONSUMER DISCRETIONARY | 37,680 | |||
CONSUMER STAPLES - 0.0% | ||||
Food Products - 0.0% | ||||
Smithfield Foods, Inc. 7.75% 7/1/17 | 805 | 753 | ||
ENERGY - 0.3% | ||||
Oil, Gas & Consumable Fuels - 0.3% | ||||
El Paso Energy Corp.: | ||||
7.75% 1/15/32 | 8,985 | 8,930 | ||
7.8% 8/1/31 | 1,960 | 1,931 | ||
| 10,861 | |||
FINANCIALS - 0.3% | ||||
Consumer Finance - 0.3% | ||||
GMAC LLC 8% 12/31/18 | 13,924 | 12,949 | ||
INDUSTRIALS - 0.0% | ||||
Airlines - 0.0% | ||||
Delta Air Lines, Inc. 8% 12/15/07 (a)(g) | 4,145 | 41 | ||
Northwest Airlines, Inc. 9.875% 3/15/07 (a) | 7,000 | 53 | ||
| 94 | |||
INFORMATION TECHNOLOGY - 0.3% | ||||
Semiconductors & Semiconductor Equipment - 0.3% | ||||
Freescale Semiconductor, Inc. 10.125% 12/15/16 | 2,730 | 2,157 | ||
NXP BV: | ||||
7.875% 10/15/14 | 4,362 | 3,882 | ||
10% 7/15/13 (g) | 1,655 | 1,721 | ||
Viasystems, Inc. 12% 1/15/15 (g) | 6,360 | 6,837 | ||
| 14,597 | |||
TELECOMMUNICATION SERVICES - 1.1% | ||||
Diversified Telecommunication Services - 0.5% | ||||
Sprint Capital Corp.: | ||||
6.875% 11/15/28 | 14,800 | 11,618 | ||
6.9% 5/1/19 | 10,410 | 9,265 | ||
| 20,883 | |||
Nonconvertible Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
TELECOMMUNICATION SERVICES - continued | ||||
Wireless Telecommunication Services - 0.6% | ||||
Nextel Communications, Inc. 7.375% 8/1/15 | $ 16,405 | $ 14,806 | ||
Sprint Nextel Corp. 6% 12/1/16 | 15,340 | 13,346 | ||
| 28,152 | |||
TOTAL TELECOMMUNICATION SERVICES | 49,035 | |||
TOTAL NONCONVERTIBLE BONDS (Cost $84,206) | 125,969 | |||
Floating Rate Loans - 2.0% | ||||
| ||||
CONSUMER DISCRETIONARY - 0.3% | ||||
Hotels, Restaurants & Leisure - 0.1% | ||||
Venetian Macau Ltd.: | ||||
Tranche B, term loan 4.76% 5/26/13 (h) | 1,185 | 1,119 | ||
Tranche DD, term loan 4.76% 5/26/12 (h) | 684 | 647 | ||
| 1,766 | |||
Media - 0.2% | ||||
Univision Communications, Inc. Tranche 1LN, term loan 2.5006% 9/29/14 (h) | 10,870 | 9,348 | ||
TOTAL CONSUMER DISCRETIONARY | 11,114 | |||
INDUSTRIALS - 0.3% | ||||
Airlines - 0.3% | ||||
Delta Air Lines, Inc. Tranche 2LN, term loan 3.5013% 4/30/14 (h) | 17,208 | 15,014 | ||
INFORMATION TECHNOLOGY - 0.7% | ||||
Semiconductors & Semiconductor Equipment - 0.7% | ||||
Freescale Semiconductor, Inc. term loan: | ||||
1.9809% 12/1/13 (h) | 22,598 | 20,281 | ||
12.5% 12/15/14 | 9,900 | 10,197 | ||
| 30,478 | |||
Floating Rate Loans - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
MATERIALS - 0.3% | ||||
Chemicals - 0.3% | ||||
Lyondell Chemical Co. term loan 5.798% 12/20/13 (h) | $ 12,055 | $ 8,680 | ||
Solutia, Inc. term loan 7.25% 2/28/14 (h) | 3,236 | 3,297 | ||
| 11,977 | |||
TELECOMMUNICATION SERVICES - 0.3% | ||||
Diversified Telecommunication Services - 0.3% | ||||
FairPoint Communications, Inc. Tranche B, term loan 3/31/15 (c)(h) | 8,250 | 6,229 | ||
Level 3 Financing, Inc. term loan 2.5013% 3/13/14 (h) | 10,000 | 9,013 | ||
| 15,242 | |||
UTILITIES - 0.1% | ||||
Electric Utilities - 0.1% | ||||
Texas Competitive Electric Holdings Co. LLC/Texas Competitive Electric Holdings Finance, Inc. Tranche B2, term loan 3.7315% 10/10/14 (h) | 5,736 | 4,689 | ||
TOTAL FLOATING RATE LOANS (Cost $70,164) | 88,514 |
Money Market Funds - 5.4% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.17% (i) | 93,276,409 | 93,276 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(i) | 144,644,075 | 144,644 | |
TOTAL MONEY MARKET FUNDS (Cost $237,920) | 237,920 |
Other - 0.0% | ||||
|
|
| ||
Delta Air Lines ALPA Claim (a) | 64,750,000 | $ 405 |
TOTAL INVESTMENT PORTFOLIO - 103.5% (Cost $4,673,556) | 4,539,565 | ||
NET OTHER ASSETS - (3.5)% | (152,122) | ||
NET ASSETS - 100% | $ 4,387,443 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Non-income producing - Issuer is in default. |
(d) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end. |
(e) Security or a portion of the security is on loan at period end. |
(f) Affiliated company |
(g) 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 $14,026,000 or 0.3% of net assets. |
(h) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(i) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(j) 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 $5,640,000 or 0.1% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Ormet Corp. | 2/27/07 - 4/4/07 | $ 20,556 |
Viasystems Group, Inc. | 2/13/04 | $ 12,594 |
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 | $ 225 |
Fidelity Securities Lending Cash Central Fund | 156 |
Total | $ 381 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliates | Value, | Purchases | Sales | Dividend | Value, |
Cenveo, Inc. | $ 18,636 | $ - | $ - | $ - | $ 27,857 |
Gray Television, Inc. | 978 | 954 | - | - | 4,755 |
Merix Corp. | 2,766 | - | - | - | 3,724 |
ON Semiconductor Corp. | 168,477 | - | - | - | 166,395 |
Service Corp. International | 110,637 | 3,332 | - | 1,419 | 137,810 |
Tenet Healthcare Corp. | 103,351 | - | 24,404 | - | - |
Total | $ 404,845 | $ 4,286 | $ 24,404 | $ 1,419 | $ 340,541 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 554,501 | $ 554,501 | $ - | $ - |
Consumer Staples | 104,022 | 100,338 | - | 3,684 |
Energy | 622,122 | 599,425 | 22,697 | - |
Financials | 545,577 | 544,907 | 670 | - |
Health Care | 303,144 | 303,144 | - | - |
Industrials | 748,298 | 748,298 | - | - |
Information Technology | 447,884 | 443,681 | - | 4,203 |
Materials | 445,693 | 445,693 | - | - |
Telecommunication Services | 131,547 | 131,547 | - | - |
Utilities | 183,969 | 183,969 | - | - |
Corporate Bonds | 125,969 | - | 125,875 | 94 |
Floating Rate Loans | 88,514 | - | 88,514 | - |
Money Market Funds | 237,920 | 237,920 | - | - |
Other | 405 | - | - | 405 |
Total Investments in Securities: | $ 4,539,565 | $ 4,293,423 | $ 237,756 | $ 8,386 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) |
|
Investments in Securities: | |
Beginning Balance | $ 2,534 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 3,088 |
Cost of Purchases | 3,684 |
Proceeds of Sales | (5) |
Amortization/Accretion | - |
Transfers in/out of Level 3 | (915) |
Ending Balance | $ 8,386 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2010 | $ 2,726 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $297,190,000 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $858,385,000 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $137,484) - See accompanying schedule: Unaffiliated issuers (cost $4,071,350) | $ 3,961,104 |
|
Fidelity Central Funds (cost $237,920) | 237,920 |
|
Other affiliated issuers (cost $364,286) | 340,541 |
|
Total Investments (cost $4,673,556) |
| $ 4,539,565 |
Receivable for investments sold | 25,983 | |
Receivable for fund shares sold | 3,646 | |
Dividends receivable | 1,017 | |
Interest receivable | 2,278 | |
Distributions receivable from Fidelity Central Funds | 38 | |
Prepaid expenses | 17 | |
Other receivables | 54 | |
Total assets | 4,572,598 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 28,640 | |
Payable for fund shares redeemed | 8,522 | |
Accrued management fee | 2,374 | |
Other affiliated payables | 945 | |
Other payables and accrued expenses | 30 | |
Collateral on securities loaned, at value | 144,644 | |
Total liabilities | 185,155 | |
|
|
|
Net Assets | $ 4,387,443 | |
Net Assets consist of: |
| |
Paid in capital | $ 5,643,960 | |
Undistributed net investment income | 7,875 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (1,130,398) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (133,994) | |
Net Assets | $ 4,387,443 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | January 31, 2010 (Unaudited) | |
|
|
|
Leveraged Company Stock: | $ 22.32 | |
|
|
|
Class K: | $ 22.32 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended January 31, 2010 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends (including $1,419 earned from other affiliated issuers) |
| $ 15,981 |
Interest |
| 13,234 |
Income from Fidelity Central Funds |
| 381 |
Total income |
| 29,596 |
|
|
|
Expenses | ||
Management fee | $ 13,525 | |
Transfer agent fees | 5,172 | |
Accounting and security lending fees | 627 | |
Custodian fees and expenses | 29 | |
Independent trustees' compensation | 13 | |
Registration fees | 65 | |
Audit | 34 | |
Legal | 26 | |
Miscellaneous | 41 | |
Total expenses before reductions | 19,532 | |
Expense reductions | (144) | 19,388 |
Net investment income (loss) | 10,208 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 66,793 | |
Other affiliated issuers | 11,344 |
|
Foreign currency transactions | (19) | |
Capital gain distributions from Fidelity Central Funds | 6 | |
Total net realized gain (loss) |
| 78,124 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 496,972 | |
Assets and liabilities in foreign currencies | (17) | |
Total change in net unrealized appreciation (depreciation) |
| 496,955 |
Net gain (loss) | 575,079 | |
Net increase (decrease) in net assets resulting from operations | $ 585,287 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 10,208 | $ 46,155 |
Net realized gain (loss) | 78,124 | (1,210,936) |
Change in net unrealized appreciation (depreciation) | 496,955 | (1,921,072) |
Net increase (decrease) in net assets resulting | 585,287 | (3,085,853) |
Distributions to shareholders from net investment income | (23,690) | (31,749) |
Distributions to shareholders from net realized gain | - | (63,967) |
Total distributions | (23,690) | (95,716) |
Share transactions - net increase (decrease) | (155,378) | (872,099) |
Redemption fees | 352 | 2,433 |
Total increase (decrease) in net assets | 406,571 | (4,051,235) |
|
|
|
Net Assets | ||
Beginning of period | 3,980,872 | 8,032,107 |
End of period (including undistributed net investment income of $7,875 and undistributed net investment income of $21,357, respectively) | $ 4,387,443 | $ 3,980,872 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Leveraged Company Stock
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 19.55 | $ 31.09 | $ 33.78 | $ 28.07 | $ 25.48 | $ 20.18 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .05 | .21 | .14 | .44 G | .16 | .24 H |
Net realized and unrealized gain (loss) | 2.83 | (11.37) | (1.06) | 6.78 | 3.04 | 6.21 |
Total from investment operations | 2.88 | (11.16) | (.92) | 7.22 | 3.20 | 6.45 |
Distributions from net investment income | (.11) | (.14) | (.39) | (.12) | (.21) | (.04) |
Distributions from net realized gain | - | (.25) | (1.39) | (1.40) | (.41) | (1.12) |
Total distributions | (.11) | (.39) | (1.78) | (1.52) | (.62) | (1.16) |
Redemption fees added to paid in capital D | - J | .01 | .01 | .01 | .01 | .01 |
Net asset value, end of period | $ 22.32 | $ 19.55 | $ 31.09 | $ 33.78 | $ 28.07 | $ 25.48 |
Total Return B, C | 14.77% | (35.99)% | (2.76)% | 27.08% | 12.80% | 33.93% |
Ratios to Average Net Assets E, I |
|
|
|
|
| |
Expenses before reductions | .90% A | .92% | .83% | .83% | .86% | .87% |
Expenses net of fee waivers, if any | .90% A | .92% | .83% | .83% | .86% | .87% |
Expenses net of all reductions | .89% A | .92% | .83% | .83% | .85% | .84% |
Net investment income (loss) | .45% A | 1.17% | .44% | 1.43% G | .60% | 1.04% H |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 4,023 | $ 3,714 | $ 8,032 | $ 7,830 | $ 4,174 | $ 3,328 |
Portfolio turnover rate F | 24% A | 34% | 30% | 20% | 23% | 16% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.26 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .59%. H Investment income per share reflects an in-kind dividend received in a corporate reorganization which amounted to $.10 per share. Excluding this dividend, the ratio of net investment income (loss) to average net assets would have been .61%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended | Years ended July 31, | |
(Unaudited) | 2009 | 2008 G | |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 19.56 | $ 31.11 | $ 34.10 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | .07 | .21 | .05 |
Net realized and unrealized gain (loss) | 2.84 | (11.35) | (3.04) |
Total from investment operations | 2.91 | (11.14) | (2.99) |
Distributions from net investment income | (.15) | (.17) | - |
Distributions from net realized gain | - | (.25) | - |
Total distributions | (.15) | (.42) | - |
Redemption fees added to paid in capital D | - I | .01 | - I |
Net asset value, end of period | $ 22.32 | $ 19.56 | $ 31.11 |
Total Return B, C | 14.92% | (35.86)% | (8.77)% |
Ratios to Average Net Assets E, H |
|
|
|
Expenses before reductions | .70% A | .71% | .70% A |
Expenses net of fee waivers, if any | .70% A | .71% | .70% A |
Expenses net of all reductions | .70% A | .71% | .70% A |
Net investment income (loss) | .64% A | 1.39% | .58% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 364,386 | $ 267,351 | $ 91 |
Portfolio turnover rate F | 24% A | 34% | 30% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Leveraged Company Stock Fund (the Fund) is a fund of Fidelity Securities Fund (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 Leveraged Company Stock and Class K 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 commencement of Class K, the Fund began offering conversion privileges between Leveraged Company Stock and Class K to eligible shareholders of Leveraged Company Stock. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds and floating rate loans, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, market discount, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 776,447 |
Gross unrealized depreciation | (957,222) |
Net unrealized appreciation (depreciation) | $ (180,775) |
|
|
Tax cost | $ 4,720,340 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the Fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $491,416 and $606,073, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .35%
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .61% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Leveraged Company Stock. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Leveraged Company Stock | $ 5,073 | .25 |
Class K | 99 | .06 |
| $ 5,172 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $59 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $8 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $156.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $144 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Leveraged Company Stock | $ 21,247 | $ 30,127 |
Class K | 2,443 | 1,622 |
Total | $ 23,690 | $ 31,749 |
From net realized gain |
|
|
Leveraged Company Stock | $ - | $ 63,966 |
Class K | - | 1 |
Total | $ - | $ 63,967 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Leveraged Company Stock |
|
|
|
|
Shares sold | 19,138 | 52,607 | $ 419,457 | $ 972,232 |
Conversion to Class K | (2,316) | (12,957) | (48,185) | (289,406) |
Reinvestment of distributions | 940 | 3,995 | 20,361 | 89,681 |
Shares redeemed | (27,456) | (112,023) | (603,507) | (1,955,126) |
Net increase (decrease) | (9,694) | (68,378) | $ (211,874) | $ (1,182,619) |
Class K |
|
|
|
|
Shares sold | 2,553 | 6,741 | $ 56,707 | $ 105,087 |
Conversion from Leveraged Company Stock | 2,315 | 12,954 | 48,185 | 289,406 |
Reinvestment of distributions | 113 | 118 | 2,443 | 1,623 |
Shares redeemed | (2,318) | (6,151) | (50,839) | (85,596) |
Net increase (decrease) | 2,663 | 13,662 | $ 56,496 | $ 310,520 |
A Conversion transactions for Class K and Leveraged Company Stock are for the period August 1, 2009 through August 31, 2009.
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.
By Phone
Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Workplace
Investing
1-800-835-5092
By PC
Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.401k.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Adviser
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investments (Japan) Limited
FIL International Investment Advisors
FIL International Investment Advisors (U.K.) Ltd.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
LSF-K-USAN-0310 1.863384.101
Fidelity®
OTC
Portfolio
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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 (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.
Semiannual Report
Shareholder Expense Example - continued
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.
|
|
|
| Expenses Paid |
OTC | 1.10% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,105.90 | $ 5.84 |
Hypothetical A |
| $ 1,000.00 | $ 1,019.66 | $ 5.60 |
Class K | .94% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,106.90 | $ 4.99 |
Hypothetical A |
| $ 1,000.00 | $ 1,020.47 | $ 4.79 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Microsoft Corp. | 8.1 | 7.4 |
Apple, Inc. | 6.3 | 5.6 |
Google, Inc. Class A | 4.7 | 4.5 |
Oracle Corp. | 3.4 | 1.1 |
QUALCOMM, Inc. | 2.5 | 2.9 |
Sprint Nextel Corp. | 2.5 | 0.7 |
NVIDIA Corp. | 2.3 | 0.5 |
eBay, Inc. | 1.9 | 1.4 |
Amazon.com, Inc. | 1.8 | 1.7 |
Amgen, Inc. | 1.5 | 2.8 |
| 35.0 | |
Top Five Market Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Information Technology | 50.1 | 52.1 |
Health Care | 17.0 | 17.2 |
Consumer Discretionary | 11.1 | 12.5 |
Financials | 8.5 | 6.8 |
Industrials | 5.6 | 4.1 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks 99.7% |
| ![]() | Stocks 99.0% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 10.4% |
| ** Foreign investments | 10.8% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.7% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 11.1% | |||
Diversified Consumer Services - 0.6% | |||
Coinstar, Inc. (a)(c) | 264,600 | $ 6,835 | |
Strayer Education, Inc. (c) | 148,200 | 30,793 | |
| 37,628 | ||
Hotels, Restaurants & Leisure - 2.1% | |||
Ameristar Casinos, Inc. | 245,000 | 3,628 | |
BJ's Restaurants, Inc. (a) | 569,500 | 12,039 | |
Ctrip.com International Ltd. sponsored ADR (a) | 164,200 | 5,138 | |
P.F. Chang's China Bistro, Inc. (a)(c) | 162,000 | 6,253 | |
Starbucks Corp. (a) | 2,944,500 | 64,161 | |
Starwood Hotels & Resorts Worldwide, Inc. | 454,200 | 15,134 | |
Wyndham Worldwide Corp. | 626,200 | 13,144 | |
| 119,497 | ||
Household Durables - 0.9% | |||
iRobot Corp. (a)(c)(d) | 1,688,286 | 26,675 | |
Lennar Corp. Class A | 231,900 | 3,562 | |
Pulte Homes, Inc. | 809,500 | 8,516 | |
Whirlpool Corp. | 162,600 | 12,224 | |
| 50,977 | ||
Internet & Catalog Retail - 2.0% | |||
Amazon.com, Inc. (a) | 846,700 | 106,185 | |
Netflix, Inc. (a) | 130,500 | 8,124 | |
| 114,309 | ||
Media - 2.0% | |||
DIRECTV (a) | 2,081,900 | 63,186 | |
DISH Network Corp. Class A | 1,024,200 | 18,702 | |
DreamWorks Animation SKG, Inc. Class A (a) | 164,507 | 6,406 | |
Liberty Global, Inc. Class A (a) | 350,400 | 8,893 | |
The Walt Disney Co. | 402,100 | 11,882 | |
Virgin Media, Inc. | 706,600 | 10,027 | |
| 119,096 | ||
Specialty Retail - 1.8% | |||
Citi Trends, Inc. (a) | 510,437 | 15,890 | |
Gymboree Corp. (a) | 199,400 | 7,779 | |
O'Reilly Automotive, Inc. (a) | 332,800 | 12,580 | |
Staples, Inc. | 1,635,000 | 38,357 | |
Urban Outfitters, Inc. (a) | 880,900 | 27,810 | |
| 102,416 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Textiles, Apparel & Luxury Goods - 1.7% | |||
Deckers Outdoor Corp. (a) | 234,500 | $ 23,021 | |
Lululemon Athletica, Inc. (a)(c) | 1,259,873 | 35,579 | |
Polo Ralph Lauren Corp. Class A | 467,300 | 38,319 | |
| 96,919 | ||
TOTAL CONSUMER DISCRETIONARY | 640,842 | ||
CONSUMER STAPLES - 0.4% | |||
Food & Staples Retailing - 0.3% | |||
Costco Wholesale Corp. | 251,600 | 14,449 | |
Household Products - 0.1% | |||
Energizer Holdings, Inc. (a) | 129,100 | 7,165 | |
TOTAL CONSUMER STAPLES | 21,614 | ||
ENERGY - 1.3% | |||
Energy Equipment & Services - 0.3% | |||
Baker Hughes, Inc. | 132,100 | 5,981 | |
Smith International, Inc. | 396,900 | 12,034 | |
| 18,015 | ||
Oil, Gas & Consumable Fuels - 1.0% | |||
Alpha Natural Resources, Inc. (a) | 236,800 | 9,616 | |
Brigham Exploration Co. (a) | 920,400 | 12,002 | |
Denbury Resources, Inc. (a) | 739,300 | 10,018 | |
James River Coal Co. (a)(c) | 1,308,100 | 20,472 | |
Peabody Energy Corp. | 147,300 | 6,204 | |
| 58,312 | ||
TOTAL ENERGY | 76,327 | ||
FINANCIALS - 8.5% | |||
Capital Markets - 0.8% | |||
Morgan Stanley | 730,800 | 19,571 | |
Northern Trust Corp. | 516,200 | 26,078 | |
| 45,649 | ||
Commercial Banks - 4.7% | |||
Associated Banc-Corp. | 767,500 | 9,763 | |
Barclays PLC Sponsored ADR | 1,436,300 | 24,575 | |
BB&T Corp. | 759,400 | 21,164 | |
Comerica, Inc. | 486,300 | 16,782 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
CVB Financial Corp. (c) | 1,078,800 | $ 10,335 | |
East West Bancorp, Inc. | 851,200 | 13,985 | |
Fifth Third Bancorp | 3,179,600 | 39,554 | |
Huntington Bancshares, Inc. | 2,402,400 | 11,507 | |
Regions Financial Corp. | 3,843,400 | 24,406 | |
Sumitomo Mitsui Financial Group, Inc. ADR | 2,722,700 | 8,740 | |
SunTrust Banks, Inc. | 539,300 | 13,121 | |
SVB Financial Group (a) | 392,600 | 17,035 | |
Umpqua Holdings Corp. | 252,600 | 3,122 | |
Wells Fargo & Co. | 1,996,000 | 56,746 | |
| 270,835 | ||
Consumer Finance - 0.2% | |||
ORIX Corp. | 143,560 | 10,814 | |
Diversified Financial Services - 2.0% | |||
Bank of America Corp. | 1,433,600 | 21,762 | |
Citigroup, Inc. | 8,010,400 | 26,595 | |
CME Group, Inc. | 136,900 | 39,266 | |
Hong Kong Exchanges and Clearing Ltd. | 208,100 | 3,546 | |
Indiabulls Financial Services Ltd. | 1,044,600 | 2,476 | |
JPMorgan Chase & Co. | 589,200 | 22,943 | |
NBH Holdings Corp. Class A (a)(e) | 141,700 | 2,834 | |
| 119,422 | ||
Insurance - 0.8% | |||
CNinsure, Inc. ADR (c) | 453,000 | 8,430 | |
Genworth Financial, Inc. Class A (a) | 1,000,000 | 13,840 | |
MBIA, Inc. (a)(c) | 3,576,900 | 17,634 | |
Protective Life Corp. | 284,700 | 4,797 | |
| 44,701 | ||
Real Estate Management & Development - 0.0% | |||
Indiabulls Real Estate Ltd. (a) | 700,000 | 2,658 | |
TOTAL FINANCIALS | 494,079 | ||
HEALTH CARE - 17.0% | |||
Biotechnology - 8.1% | |||
Alexion Pharmaceuticals, Inc. (a) | 836,760 | 38,801 | |
Allos Therapeutics, Inc. (a) | 846,100 | 6,143 | |
Alnylam Pharmaceuticals, Inc. (a) | 574,300 | 9,706 | |
Amgen, Inc. (a) | 1,496,700 | 87,527 | |
Amylin Pharmaceuticals, Inc. (a) | 1,557,009 | 27,995 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
Biogen Idec, Inc. (a) | 352,700 | $ 18,954 | |
BioMarin Pharmaceutical, Inc. (a) | 157,400 | 3,058 | |
Cephalon, Inc. (a) | 277,300 | 17,703 | |
Cepheid, Inc. (a) | 689,600 | 10,130 | |
Dendreon Corp. (a)(c) | 1,786,200 | 49,478 | |
Exelixis, Inc. (a) | 1,699,972 | 11,271 | |
Human Genome Sciences, Inc. (a)(c) | 2,333,550 | 61,769 | |
ImmunoGen, Inc. (a) | 230,409 | 1,611 | |
InterMune, Inc. (c) | 966,000 | 15,079 | |
Isis Pharmaceuticals, Inc. (a) | 1,548,049 | 17,276 | |
Medivation, Inc. (a) | 104,762 | 3,488 | |
Myriad Genetics, Inc. (a) | 923,978 | 21,713 | |
Pharmasset, Inc. (a) | 179,000 | 3,741 | |
Rigel Pharmaceuticals, Inc. (a) | 833,284 | 6,841 | |
Seattle Genetics, Inc. (a) | 1,465,403 | 15,123 | |
Targacept, Inc. (a) | 250,649 | 5,251 | |
Vertex Pharmaceuticals, Inc. (a) | 877,288 | 33,688 | |
| 466,346 | ||
Health Care Equipment & Supplies - 2.9% | |||
Abiomed, Inc. (a) | 1,372,359 | 10,869 | |
AGA Medical Holdings, Inc. | 386,200 | 5,534 | |
Elekta AB (B Shares) | 506,100 | 11,872 | |
ev3, Inc. (a) | 641,000 | 9,346 | |
HeartWare International, Inc. (a) | 30,100 | 1,163 | |
Hologic, Inc. (a) | 1,221,000 | 18,400 | |
Intuitive Surgical, Inc. (a) | 99,100 | 32,511 | |
Mako Surgical Corp. (a)(c) | 1,181,663 | 13,565 | |
NuVasive, Inc. (a) | 599,700 | 16,552 | |
Stereotaxis, Inc. (a)(c) | 1,000,000 | 4,060 | |
Thoratec Corp. (a) | 1,597,900 | 45,300 | |
| 169,172 | ||
Health Care Providers & Services - 1.2% | |||
Amedisys, Inc. (a) | 58,700 | 3,226 | |
CIGNA Corp. | 428,200 | 14,460 | |
Express Scripts, Inc. (a) | 486,510 | 40,799 | |
UnitedHealth Group, Inc. | 277,700 | 9,164 | |
| 67,649 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Technology - 1.0% | |||
athenahealth, Inc. (a)(c) | 903,600 | $ 35,548 | |
SXC Health Solutions Corp. (a) | 457,500 | 21,482 | |
| 57,030 | ||
Life Sciences Tools & Services - 1.8% | |||
Illumina, Inc. (a)(c) | 1,177,192 | 43,191 | |
Illumina, Inc.: | |||
warrants 11/20/10 (a)(g) | 354,776 | 3,863 | |
warrants 1/19/11 (a)(g) | 452,917 | 5,023 | |
Life Technologies Corp. (a) | 402,598 | 20,013 | |
QIAGEN NV (a) | 1,470,800 | 32,005 | |
| 104,095 | ||
Pharmaceuticals - 2.0% | |||
Elan Corp. PLC sponsored ADR (a) | 3,315,051 | 24,697 | |
Shire PLC sponsored ADR | 215,300 | 12,832 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 1,374,573 | 77,966 | |
| 115,495 | ||
TOTAL HEALTH CARE | 979,787 | ||
INDUSTRIALS - 5.6% | |||
Aerospace & Defense - 0.5% | |||
AeroVironment, Inc. (a) | 547,964 | 18,669 | |
Precision Castparts Corp. | 66,300 | 6,978 | |
| 25,647 | ||
Airlines - 2.4% | |||
AMR Corp. (a) | 4,841,400 | 33,502 | |
Continental Airlines, Inc. Class B (a) | 1,692,859 | 31,132 | |
Delta Air Lines, Inc. (a) | 1,791,200 | 21,906 | |
JetBlue Airways Corp. (a) | 837,320 | 4,136 | |
UAL Corp. (a) | 4,035,900 | 49,359 | |
| 140,035 | ||
Construction & Engineering - 0.0% | |||
MYR Group, Inc. (a) | 124,830 | 1,980 | |
Electrical Equipment - 1.0% | |||
Energy Conversion Devices, Inc. (a)(c) | 281,300 | 2,563 | |
First Solar, Inc. (a)(c) | 268,836 | 30,459 | |
Fushi Copperweld, Inc. (a) | 1,333,600 | 12,296 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Electrical Equipment - continued | |||
Saft Groupe SA | 232,742 | $ 9,980 | |
SunPower Corp. Class A (a)(c) | 196,189 | 4,000 | |
| 59,298 | ||
Machinery - 0.7% | |||
Altra Holdings, Inc. (a) | 573,800 | 6,323 | |
Navistar International Corp. (a) | 86,289 | 3,192 | |
PACCAR, Inc. | 852,900 | 30,730 | |
| 40,245 | ||
Professional Services - 0.1% | |||
Monster Worldwide, Inc. (a) | 243,500 | 3,796 | |
Road & Rail - 0.7% | |||
CSX Corp. | 565,600 | 24,242 | |
Hertz Global Holdings, Inc. (a)(c) | 1,015,000 | 10,515 | |
Saia, Inc. (a) | 300,000 | 3,600 | |
| 38,357 | ||
Trading Companies & Distributors - 0.2% | |||
DXP Enterprises, Inc. (a) | 312,715 | 4,093 | |
Interline Brands, Inc. (a) | 409,400 | 6,878 | |
Rush Enterprises, Inc. Class A (a) | 258,100 | 2,932 | |
| 13,903 | ||
TOTAL INDUSTRIALS | 323,261 | ||
INFORMATION TECHNOLOGY - 50.1% | |||
Communications Equipment - 5.9% | |||
Brocade Communications Systems, Inc. (a) | 3,721,700 | 25,568 | |
Cisco Systems, Inc. (a) | 3,358,300 | 75,461 | |
Emulex Corp. (a) | 778,800 | 8,754 | |
Palm, Inc. (a)(c) | 5,012,090 | 52,076 | |
QUALCOMM, Inc. | 3,688,600 | 144,556 | |
Riverbed Technology, Inc. (a) | 1,489,500 | 33,395 | |
| 339,810 | ||
Computers & Peripherals - 8.8% | |||
Apple, Inc. (a) | 1,913,200 | 367,564 | |
Compellent Technologies, Inc. (a) | 644,084 | 12,804 | |
Dell, Inc. (a) | 2,788,456 | 35,971 | |
SanDisk Corp. (a) | 1,740,950 | 44,255 | |
Seagate Technology | 3,010,900 | 50,372 | |
| 510,966 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Components - 0.2% | |||
BYD Co. Ltd. (H Shares) (a)(c) | 1,132,000 | $ 8,296 | |
Prime View International Co. Ltd. sponsored GDR (a)(e) | 44,300 | 813 | |
| 9,109 | ||
Internet Software & Services - 7.5% | |||
Baidu.com, Inc. sponsored ADR (a) | 20,600 | 8,481 | |
eBay, Inc. (a) | 4,723,200 | 108,728 | |
Google, Inc. Class A (a) | 509,740 | 269,867 | |
NetEase.com, Inc. sponsored ADR (a) | 160,600 | 5,268 | |
Rackspace Hosting, Inc. (a) | 689,600 | 12,565 | |
Tencent Holdings Ltd. | 548,800 | 10,264 | |
VistaPrint Ltd. (a) | 381,300 | 21,357 | |
| 436,530 | ||
IT Services - 1.0% | |||
Cognizant Technology Solutions Corp. Class A (a) | 801,445 | 34,991 | |
Echo Global Logistics, Inc. | 242,900 | 2,932 | |
Visa, Inc. Class A | 217,600 | 17,850 | |
| 55,773 | ||
Semiconductors & Semiconductor Equipment - 9.8% | |||
Advanced Micro Devices, Inc. (a) | 2,918,600 | 21,773 | |
Amkor Technology, Inc. (a)(c) | 2,227,527 | 12,675 | |
Applied Materials, Inc. | 1,595,851 | 19,437 | |
ASM International NV (NASDAQ) (a) | 122,500 | 2,810 | |
ASML Holding NV (NY Shares) | 307,200 | 9,600 | |
Avago Technologies Ltd. | 1,611,600 | 28,010 | |
Cree, Inc. (a) | 300,400 | 16,795 | |
Cypress Semiconductor Corp. (a) | 863,950 | 8,683 | |
Intel Corp. | 4,025,600 | 78,097 | |
KLA-Tencor Corp. | 629,100 | 17,741 | |
Lam Research Corp. (a) | 1,098,500 | 36,261 | |
Marvell Technology Group Ltd. (a) | 2,846,000 | 49,606 | |
Mellanox Technologies Ltd. (a) | 858,000 | 15,761 | |
MEMC Electronic Materials, Inc. (a) | 1,484,700 | 18,678 | |
Micron Technology, Inc. (a) | 1,720,600 | 15,004 | |
NVE Corp. (a)(c) | 49,300 | 2,056 | |
NVIDIA Corp. (a) | 8,526,600 | 131,224 | |
O2Micro International Ltd. sponsored ADR (a) | 1,640,800 | 7,695 | |
Silicon Laboratories, Inc. (a) | 175,406 | 7,409 | |
Standard Microsystems Corp. (a) | 444,600 | 8,870 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Semiconductors & Semiconductor Equipment - continued | |||
Varian Semiconductor Equipment Associates, Inc. (a) | 1,064,800 | $ 31,231 | |
Volterra Semiconductor Corp. (a)(d) | 1,322,300 | 25,772 | |
| 565,188 | ||
Software - 16.9% | |||
Activision Blizzard, Inc. (a) | 2,389,600 | 24,278 | |
ArcSight, Inc. (a) | 497,712 | 11,821 | |
Ariba, Inc. (a) | 2,114,596 | 26,623 | |
BMC Software, Inc. (a) | 233,800 | 9,034 | |
Check Point Software Technologies Ltd. (a) | 1,178,100 | 37,676 | |
Citrix Systems, Inc. (a) | 600,500 | 24,951 | |
DemandTec, Inc. (a) | 855,133 | 5,079 | |
Gameloft (a)(d) | 6,912,973 | 36,450 | |
Informatica Corp. (a) | 584,600 | 13,849 | |
Mentor Graphics Corp. (a) | 627,100 | 5,029 | |
Microsoft Corp. | 16,489,400 | 464,670 | |
Nuance Communications, Inc. (a) | 386,200 | 5,801 | |
Oracle Corp. | 8,490,700 | 195,796 | |
Pegasystems, Inc. | 560,428 | 18,634 | |
Perfect World Co. Ltd. sponsored ADR Class B (a) | 351,729 | 13,116 | |
Sourcefire, Inc. (a) | 489,365 | 10,203 | |
SuccessFactors, Inc. (a) | 625,179 | 10,190 | |
Symantec Corp. (a) | 829,400 | 14,058 | |
Taleo Corp. Class A (a) | 954,485 | 19,386 | |
TiVo, Inc. (a) | 909,175 | 8,201 | |
VMware, Inc. Class A (a) | 496,100 | 22,528 | |
| 977,373 | ||
TOTAL INFORMATION TECHNOLOGY | 2,894,749 | ||
MATERIALS - 1.5% | |||
Chemicals - 1.4% | |||
Celanese Corp. Class A | 344,700 | 10,031 | |
Dow Chemical Co. | 627,600 | 17,002 | |
Solutia, Inc. (a) | 379,689 | 5,221 | |
The Mosaic Co. | 667,200 | 35,702 | |
W.R. Grace & Co. (a) | 461,300 | 11,016 | |
| 78,972 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Metals & Mining - 0.1% | |||
Steel Dynamics, Inc. | 521,700 | $ 7,919 | |
TOTAL MATERIALS | 86,891 | ||
TELECOMMUNICATION SERVICES - 4.2% | |||
Diversified Telecommunication Services - 1.2% | |||
Cbeyond, Inc. (a)(c) | 848,690 | 10,575 | |
Clearwire Corp.: | |||
rights 6/21/10 (a)(c) | 3,206,700 | 1,443 | |
Class A (a)(c) | 3,206,700 | 20,811 | |
Global Crossing Ltd. (a) | 2,231,000 | 31,167 | |
Neutral Tandem, Inc. (a)(c) | 126,100 | 1,950 | |
| 65,946 | ||
Wireless Telecommunication Services - 3.0% | |||
Leap Wireless International, Inc. (a)(c) | 2,291,000 | 30,218 | |
Sprint Nextel Corp. (a) | 43,969,556 | 144,220 | |
| 174,438 | ||
TOTAL TELECOMMUNICATION SERVICES | 240,384 | ||
TOTAL COMMON STOCKS (Cost $5,464,597) | 5,757,934 | ||
Money Market Funds - 4.0% | |||
|
|
|
|
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(f) | 228,972,840 | 228,973 | |
TOTAL INVESTMENT PORTFOLIO - 103.7% (Cost $5,693,570) | 5,986,907 | ||
NET OTHER ASSETS - (3.7)% | (210,960) | ||
NET ASSETS - 100% | $ 5,775,947 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated company |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $3,647,000 or 0.1% of net assets. |
(f) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $8,886,000 or 0.2% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Illumina, Inc. warrants 11/20/10 | 11/21/05 | $ - |
Illumina, Inc. warrants 1/19/11 | 1/18/06 | $ - |
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 | $ 24 |
Fidelity Securities Lending Cash Central Fund | 676 |
Total | $ 700 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliates | Value, | Purchases | Sales Proceeds | Dividend Income | Value, |
Citi Trends, Inc. | $ 18,823 | $ 5,497 | $ 10,841 | $ - | $ - |
Gameloft | 23,134 | 5,384 | - | - | 36,450 |
iRobot Corp. | - | 22,455 | 1,013 | - | 26,675 |
Volterra Semiconductor Corp. | 20,371 | 1,413 | - | - | 25,772 |
Total | $ 62,328 | $ 34,749 | $ 11,854 | $ - | $ 88,897 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 640,842 | $ 640,842 | $ - | $ - |
Consumer Staples | 21,614 | 21,614 | - | - |
Energy | 76,327 | 76,327 | - | - |
Financials | 494,079 | 491,245 | - | 2,834 |
Health Care | 979,787 | 959,029 | 20,758 | - |
Industrials | 323,261 | 313,281 | 9,980 | - |
Information Technology | 2,894,749 | 2,858,299 | 36,450 | - |
Materials | 86,891 | 86,891 | - | - |
Telecommunication Services | 240,384 | 240,384 | - | - |
Money Market Funds | 228,973 | 228,973 | - | - |
Total Investments in Securities: | $ 5,986,907 | $ 5,916,885 | $ 67,188 | $ 2,834 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) |
|
Investments in Securities: | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | 2,834 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in/out of Level 3 | - |
Ending Balance | $ 2,834 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2010 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 89.6% |
Israel | 2.4% |
Bermuda | 1.8% |
Cayman Islands | 1.5% |
Others (individually less than 1%) | 4.7% |
| 100.0% |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $2,529,643,000 of which $878,595,000, $1,249,895,000 and $401,153,000 will expire on July 31, 2010, 2011 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $240,601,000 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $215,789) - See accompanying schedule: Unaffiliated issuers (cost $5,398,407) | $ 5,669,037 |
|
Fidelity Central Funds (cost $228,973) | 228,973 |
|
Other affiliated issuers (cost $66,190) | 88,897 |
|
Total Investments (cost $5,693,570) |
| $ 5,986,907 |
Receivable for investments sold | 90,983 | |
Receivable for fund shares sold | 7,317 | |
Dividends receivable | 573 | |
Distributions receivable from Fidelity Central Funds | 173 | |
Prepaid expenses | 21 | |
Other receivables | 959 | |
Total assets | 6,086,933 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 417 | |
Payable for investments purchased | 65,724 | |
Payable for fund shares redeemed | 10,343 | |
Accrued management fee | 4,241 | |
Other affiliated payables | 1,088 | |
Other payables and accrued expenses | 200 | |
Collateral on securities loaned, at value | 228,973 | |
Total liabilities | 310,986 | |
|
|
|
Net Assets | $ 5,775,947 | |
Net Assets consist of: |
| |
Paid in capital | $ 7,870,776 | |
Accumulated net investment loss | (14,103) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (2,374,015) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 293,289 | |
Net Assets | $ 5,775,947 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | January 31, 2010 (Unaudited) | |
|
|
|
OTC: | $ 42.83 | |
|
|
|
Class K: | $ 42.98 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Six months ended January 31, 2010 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 15,555 |
Income from Fidelity Central Funds |
| 700 |
Total income |
| 16,255 |
|
|
|
Expenses | ||
Management fee | $ 17,373 | |
Performance adjustment | 6,755 | |
Transfer agent fees | 5,871 | |
Accounting and security lending fees | 668 | |
Custodian fees and expenses | 68 | |
Independent trustees' compensation | 17 | |
Registration fees | 77 | |
Audit | 41 | |
Legal | 22 | |
Interest | 8 | |
Miscellaneous | 45 | |
Total expenses before reductions | 30,945 | |
Expense reductions | (695) | 30,250 |
Net investment income (loss) | (13,995) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 482,646 | |
Other affiliated issuers | 7,292 |
|
Foreign currency transactions | 153 | |
Capital gain distributions from Fidelity Central Funds | 12 | |
Total net realized gain (loss) |
| 490,103 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 63,843 | |
Assets and liabilities in foreign currencies | 21 | |
Total change in net unrealized appreciation (depreciation) |
| 63,864 |
Net gain (loss) | 553,967 | |
Net increase (decrease) in net assets resulting from operations | $ 539,972 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (13,995) | $ (15,605) |
Net realized gain (loss) | 490,103 | (679,506) |
Change in net unrealized appreciation (depreciation) | 63,864 | (298,374) |
Net increase (decrease) in net assets resulting | 539,972 | (993,485) |
Share transactions - net increase (decrease) | 70,199 | (711,460) |
Total increase (decrease) in net assets | 610,171 | (1,704,945) |
|
|
|
Net Assets | ||
Beginning of period | 5,165,776 | 6,870,721 |
End of period (including accumulated net investment loss of $14,103 and accumulated net investment loss of $108, respectively) | $ 5,775,947 | $ 5,165,776 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - OTC
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 38.73 | $ 44.66 | $ 47.09 | $ 34.70 | $ 35.99 | $ 30.43 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.11) | (.12) | (.20) | (.19) | (.10) G | .37 H |
Net realized and unrealized gain (loss) | 4.21 | (5.81) | (2.23) | 12.58 | (1.19) | 5.60 |
Total from investment operations | 4.10 | (5.93) | (2.43) | 12.39 | (1.29) | 5.97 |
Distributions from net investment income | - | - | - | - | - | (.41) |
Net asset value, end of period | $ 42.83 | $ 38.73 | $ 44.66 | $ 47.09 | $ 34.70 | $ 35.99 |
Total Return B, C | 10.59% | (13.28)% | (5.16)% | 35.71% | (3.58)% | 19.70% |
Ratios to Average Net Assets E, I |
|
|
|
|
| |
Expenses before reductions | 1.10% A | 1.13% | 1.06% | .96% | .80% | .81% |
Expenses net of fee waivers, if any | 1.10% A | 1.13% | 1.06% | .96% | .80% | .81% |
Expenses net of all reductions | 1.08% A | 1.13% | 1.05% | .95% | .75% | .75% |
Net investment income (loss) | (.51)% A | (.37)% | (.42)% | (.45)% | (.26)% G | 1.13% H |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (in millions) | $ 5,122 | $ 4,677 | $ 6,871 | $ 8,778 | $ 7,370 | $ 8,063 |
Portfolio turnover rate F | 139% A | 151% | 145% | 121% | 149% | 117% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a special dividend which amounted to $.03 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.34)%.
H Investment income per share reflects a special dividend which amounted to $.46 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.27)%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended | Years ended July 31, | |
(Unaudited) | 2009 | 2008 G | |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 38.83 | $ 44.68 | $ 47.79 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | (.07) | (.05) | (.05) |
Net realized and unrealized gain (loss) | 4.22 | (5.80) | (3.06) |
Total from investment operations | 4.15 | (5.85) | (3.11) |
Net asset value, end of period | $ 42.98 | $ 38.83 | $ 44.68 |
Total Return B, C | 10.69% | (13.09)% | (6.51)% |
Ratios to Average Net Assets E, H |
|
|
|
Expenses before reductions | .94% A | .92% | .91% A |
Expenses net of fee waivers, if any | .94% A | .92% | .91% A |
Expenses net of all reductions | .91% A | .92% | .91% A |
Net investment income (loss) | (.34)% A | (.17)% | (.47)% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 653,772 | $ 488,683 | $ 93 |
Portfolio turnover rate F | 139% A | 151% | 145% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity OTC Portfolio (the Fund) is a non-diversified fund of Fidelity Securities Fund (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 OTC and Class K 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 commencement of Class K, the Fund began offering conversion privileges between OTC and Class K to eligible shareholders of OTC. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as level 2 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, redemptions-in-kind, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 704,627 |
Gross unrealized depreciation | (478,934) |
Net unrealized appreciation (depreciation) | $ 225,693 |
|
|
Tax cost | $ 5,761,214 |
Semiannual Report
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $3,954,681 and $3,863,060, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .35% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class of the Fund, OTC as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .85% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of OTC. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
OTC | $ 5,707 | .22 |
Class K | 164 | .06 |
| $ 5,871 |
|
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $71 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily | Weighted Average | Interest |
Borrower | $ 15,110 | .38% | $ 7 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $11 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $676.
9. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average daily loan balance during the period for which loans were outstanding amounted to $6,750. The weighted average interest rate was .62%. The interest expense amounted to $1 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
10. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $695 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by one hundred fifty-three dollars.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
OTC |
|
|
|
|
Shares sold | 15,651 | 30,393 | $ 667,307 | $ 1,008,444 |
Conversion to Class K | (520) | (11,534) | (20,492) | (344,688) |
Shares redeemed | (16,305) | (51,952) | (692,590) | (1,755,471) |
Net increase (decrease) | (1,174) | (33,093) | $ (45,775) | $ (1,091,715) |
Class K |
|
|
|
|
Shares sold | 3,872 | 2,992 | $ 170,126 | $ 95,604 |
Conversion from OTC | 518 | 11,521 | 20,492 | 344,688 |
Shares redeemed | (1,764) | (1,930) | (74,644) | (60,037) |
Net increase (decrease) | 2,626 | 12,583 | $ 115,974 | $ 380,255 |
A Conversion transactions for Class K and OTC are for the period August 1, 2009 through August 31, 2009.
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Managing Your Investments
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* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
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Semiannual Report
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Semiannual Report
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Semiannual Report
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OTC-USAN-0310 1.789288.107
Fidelity®
OTC
Portfolio -
Class K
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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 (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.
Semiannual Report
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.
|
|
|
| Expenses Paid |
OTC | 1.10% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,105.90 | $ 5.84 |
Hypothetical A |
| $ 1,000.00 | $ 1,019.66 | $ 5.60 |
Class K | .94% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,106.90 | $ 4.99 |
Hypothetical A |
| $ 1,000.00 | $ 1,020.47 | $ 4.79 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Microsoft Corp. | 8.1 | 7.4 |
Apple, Inc. | 6.3 | 5.6 |
Google, Inc. Class A | 4.7 | 4.5 |
Oracle Corp. | 3.4 | 1.1 |
QUALCOMM, Inc. | 2.5 | 2.9 |
Sprint Nextel Corp. | 2.5 | 0.7 |
NVIDIA Corp. | 2.3 | 0.5 |
eBay, Inc. | 1.9 | 1.4 |
Amazon.com, Inc. | 1.8 | 1.7 |
Amgen, Inc. | 1.5 | 2.8 |
| 35.0 | |
Top Five Market Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Information Technology | 50.1 | 52.1 |
Health Care | 17.0 | 17.2 |
Consumer Discretionary | 11.1 | 12.5 |
Financials | 8.5 | 6.8 |
Industrials | 5.6 | 4.1 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks 99.7% |
| ![]() | Stocks 99.0% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 10.4% |
| ** Foreign investments | 10.8% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.7% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 11.1% | |||
Diversified Consumer Services - 0.6% | |||
Coinstar, Inc. (a)(c) | 264,600 | $ 6,835 | |
Strayer Education, Inc. (c) | 148,200 | 30,793 | |
| 37,628 | ||
Hotels, Restaurants & Leisure - 2.1% | |||
Ameristar Casinos, Inc. | 245,000 | 3,628 | |
BJ's Restaurants, Inc. (a) | 569,500 | 12,039 | |
Ctrip.com International Ltd. sponsored ADR (a) | 164,200 | 5,138 | |
P.F. Chang's China Bistro, Inc. (a)(c) | 162,000 | 6,253 | |
Starbucks Corp. (a) | 2,944,500 | 64,161 | |
Starwood Hotels & Resorts Worldwide, Inc. | 454,200 | 15,134 | |
Wyndham Worldwide Corp. | 626,200 | 13,144 | |
| 119,497 | ||
Household Durables - 0.9% | |||
iRobot Corp. (a)(c)(d) | 1,688,286 | 26,675 | |
Lennar Corp. Class A | 231,900 | 3,562 | |
Pulte Homes, Inc. | 809,500 | 8,516 | |
Whirlpool Corp. | 162,600 | 12,224 | |
| 50,977 | ||
Internet & Catalog Retail - 2.0% | |||
Amazon.com, Inc. (a) | 846,700 | 106,185 | |
Netflix, Inc. (a) | 130,500 | 8,124 | |
| 114,309 | ||
Media - 2.0% | |||
DIRECTV (a) | 2,081,900 | 63,186 | |
DISH Network Corp. Class A | 1,024,200 | 18,702 | |
DreamWorks Animation SKG, Inc. Class A (a) | 164,507 | 6,406 | |
Liberty Global, Inc. Class A (a) | 350,400 | 8,893 | |
The Walt Disney Co. | 402,100 | 11,882 | |
Virgin Media, Inc. | 706,600 | 10,027 | |
| 119,096 | ||
Specialty Retail - 1.8% | |||
Citi Trends, Inc. (a) | 510,437 | 15,890 | |
Gymboree Corp. (a) | 199,400 | 7,779 | |
O'Reilly Automotive, Inc. (a) | 332,800 | 12,580 | |
Staples, Inc. | 1,635,000 | 38,357 | |
Urban Outfitters, Inc. (a) | 880,900 | 27,810 | |
| 102,416 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Textiles, Apparel & Luxury Goods - 1.7% | |||
Deckers Outdoor Corp. (a) | 234,500 | $ 23,021 | |
Lululemon Athletica, Inc. (a)(c) | 1,259,873 | 35,579 | |
Polo Ralph Lauren Corp. Class A | 467,300 | 38,319 | |
| 96,919 | ||
TOTAL CONSUMER DISCRETIONARY | 640,842 | ||
CONSUMER STAPLES - 0.4% | |||
Food & Staples Retailing - 0.3% | |||
Costco Wholesale Corp. | 251,600 | 14,449 | |
Household Products - 0.1% | |||
Energizer Holdings, Inc. (a) | 129,100 | 7,165 | |
TOTAL CONSUMER STAPLES | 21,614 | ||
ENERGY - 1.3% | |||
Energy Equipment & Services - 0.3% | |||
Baker Hughes, Inc. | 132,100 | 5,981 | |
Smith International, Inc. | 396,900 | 12,034 | |
| 18,015 | ||
Oil, Gas & Consumable Fuels - 1.0% | |||
Alpha Natural Resources, Inc. (a) | 236,800 | 9,616 | |
Brigham Exploration Co. (a) | 920,400 | 12,002 | |
Denbury Resources, Inc. (a) | 739,300 | 10,018 | |
James River Coal Co. (a)(c) | 1,308,100 | 20,472 | |
Peabody Energy Corp. | 147,300 | 6,204 | |
| 58,312 | ||
TOTAL ENERGY | 76,327 | ||
FINANCIALS - 8.5% | |||
Capital Markets - 0.8% | |||
Morgan Stanley | 730,800 | 19,571 | |
Northern Trust Corp. | 516,200 | 26,078 | |
| 45,649 | ||
Commercial Banks - 4.7% | |||
Associated Banc-Corp. | 767,500 | 9,763 | |
Barclays PLC Sponsored ADR | 1,436,300 | 24,575 | |
BB&T Corp. | 759,400 | 21,164 | |
Comerica, Inc. | 486,300 | 16,782 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
CVB Financial Corp. (c) | 1,078,800 | $ 10,335 | |
East West Bancorp, Inc. | 851,200 | 13,985 | |
Fifth Third Bancorp | 3,179,600 | 39,554 | |
Huntington Bancshares, Inc. | 2,402,400 | 11,507 | |
Regions Financial Corp. | 3,843,400 | 24,406 | |
Sumitomo Mitsui Financial Group, Inc. ADR | 2,722,700 | 8,740 | |
SunTrust Banks, Inc. | 539,300 | 13,121 | |
SVB Financial Group (a) | 392,600 | 17,035 | |
Umpqua Holdings Corp. | 252,600 | 3,122 | |
Wells Fargo & Co. | 1,996,000 | 56,746 | |
| 270,835 | ||
Consumer Finance - 0.2% | |||
ORIX Corp. | 143,560 | 10,814 | |
Diversified Financial Services - 2.0% | |||
Bank of America Corp. | 1,433,600 | 21,762 | |
Citigroup, Inc. | 8,010,400 | 26,595 | |
CME Group, Inc. | 136,900 | 39,266 | |
Hong Kong Exchanges and Clearing Ltd. | 208,100 | 3,546 | |
Indiabulls Financial Services Ltd. | 1,044,600 | 2,476 | |
JPMorgan Chase & Co. | 589,200 | 22,943 | |
NBH Holdings Corp. Class A (a)(e) | 141,700 | 2,834 | |
| 119,422 | ||
Insurance - 0.8% | |||
CNinsure, Inc. ADR (c) | 453,000 | 8,430 | |
Genworth Financial, Inc. Class A (a) | 1,000,000 | 13,840 | |
MBIA, Inc. (a)(c) | 3,576,900 | 17,634 | |
Protective Life Corp. | 284,700 | 4,797 | |
| 44,701 | ||
Real Estate Management & Development - 0.0% | |||
Indiabulls Real Estate Ltd. (a) | 700,000 | 2,658 | |
TOTAL FINANCIALS | 494,079 | ||
HEALTH CARE - 17.0% | |||
Biotechnology - 8.1% | |||
Alexion Pharmaceuticals, Inc. (a) | 836,760 | 38,801 | |
Allos Therapeutics, Inc. (a) | 846,100 | 6,143 | |
Alnylam Pharmaceuticals, Inc. (a) | 574,300 | 9,706 | |
Amgen, Inc. (a) | 1,496,700 | 87,527 | |
Amylin Pharmaceuticals, Inc. (a) | 1,557,009 | 27,995 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
Biogen Idec, Inc. (a) | 352,700 | $ 18,954 | |
BioMarin Pharmaceutical, Inc. (a) | 157,400 | 3,058 | |
Cephalon, Inc. (a) | 277,300 | 17,703 | |
Cepheid, Inc. (a) | 689,600 | 10,130 | |
Dendreon Corp. (a)(c) | 1,786,200 | 49,478 | |
Exelixis, Inc. (a) | 1,699,972 | 11,271 | |
Human Genome Sciences, Inc. (a)(c) | 2,333,550 | 61,769 | |
ImmunoGen, Inc. (a) | 230,409 | 1,611 | |
InterMune, Inc. (c) | 966,000 | 15,079 | |
Isis Pharmaceuticals, Inc. (a) | 1,548,049 | 17,276 | |
Medivation, Inc. (a) | 104,762 | 3,488 | |
Myriad Genetics, Inc. (a) | 923,978 | 21,713 | |
Pharmasset, Inc. (a) | 179,000 | 3,741 | |
Rigel Pharmaceuticals, Inc. (a) | 833,284 | 6,841 | |
Seattle Genetics, Inc. (a) | 1,465,403 | 15,123 | |
Targacept, Inc. (a) | 250,649 | 5,251 | |
Vertex Pharmaceuticals, Inc. (a) | 877,288 | 33,688 | |
| 466,346 | ||
Health Care Equipment & Supplies - 2.9% | |||
Abiomed, Inc. (a) | 1,372,359 | 10,869 | |
AGA Medical Holdings, Inc. | 386,200 | 5,534 | |
Elekta AB (B Shares) | 506,100 | 11,872 | |
ev3, Inc. (a) | 641,000 | 9,346 | |
HeartWare International, Inc. (a) | 30,100 | 1,163 | |
Hologic, Inc. (a) | 1,221,000 | 18,400 | |
Intuitive Surgical, Inc. (a) | 99,100 | 32,511 | |
Mako Surgical Corp. (a)(c) | 1,181,663 | 13,565 | |
NuVasive, Inc. (a) | 599,700 | 16,552 | |
Stereotaxis, Inc. (a)(c) | 1,000,000 | 4,060 | |
Thoratec Corp. (a) | 1,597,900 | 45,300 | |
| 169,172 | ||
Health Care Providers & Services - 1.2% | |||
Amedisys, Inc. (a) | 58,700 | 3,226 | |
CIGNA Corp. | 428,200 | 14,460 | |
Express Scripts, Inc. (a) | 486,510 | 40,799 | |
UnitedHealth Group, Inc. | 277,700 | 9,164 | |
| 67,649 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Technology - 1.0% | |||
athenahealth, Inc. (a)(c) | 903,600 | $ 35,548 | |
SXC Health Solutions Corp. (a) | 457,500 | 21,482 | |
| 57,030 | ||
Life Sciences Tools & Services - 1.8% | |||
Illumina, Inc. (a)(c) | 1,177,192 | 43,191 | |
Illumina, Inc.: | |||
warrants 11/20/10 (a)(g) | 354,776 | 3,863 | |
warrants 1/19/11 (a)(g) | 452,917 | 5,023 | |
Life Technologies Corp. (a) | 402,598 | 20,013 | |
QIAGEN NV (a) | 1,470,800 | 32,005 | |
| 104,095 | ||
Pharmaceuticals - 2.0% | |||
Elan Corp. PLC sponsored ADR (a) | 3,315,051 | 24,697 | |
Shire PLC sponsored ADR | 215,300 | 12,832 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 1,374,573 | 77,966 | |
| 115,495 | ||
TOTAL HEALTH CARE | 979,787 | ||
INDUSTRIALS - 5.6% | |||
Aerospace & Defense - 0.5% | |||
AeroVironment, Inc. (a) | 547,964 | 18,669 | |
Precision Castparts Corp. | 66,300 | 6,978 | |
| 25,647 | ||
Airlines - 2.4% | |||
AMR Corp. (a) | 4,841,400 | 33,502 | |
Continental Airlines, Inc. Class B (a) | 1,692,859 | 31,132 | |
Delta Air Lines, Inc. (a) | 1,791,200 | 21,906 | |
JetBlue Airways Corp. (a) | 837,320 | 4,136 | |
UAL Corp. (a) | 4,035,900 | 49,359 | |
| 140,035 | ||
Construction & Engineering - 0.0% | |||
MYR Group, Inc. (a) | 124,830 | 1,980 | |
Electrical Equipment - 1.0% | |||
Energy Conversion Devices, Inc. (a)(c) | 281,300 | 2,563 | |
First Solar, Inc. (a)(c) | 268,836 | 30,459 | |
Fushi Copperweld, Inc. (a) | 1,333,600 | 12,296 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Electrical Equipment - continued | |||
Saft Groupe SA | 232,742 | $ 9,980 | |
SunPower Corp. Class A (a)(c) | 196,189 | 4,000 | |
| 59,298 | ||
Machinery - 0.7% | |||
Altra Holdings, Inc. (a) | 573,800 | 6,323 | |
Navistar International Corp. (a) | 86,289 | 3,192 | |
PACCAR, Inc. | 852,900 | 30,730 | |
| 40,245 | ||
Professional Services - 0.1% | |||
Monster Worldwide, Inc. (a) | 243,500 | 3,796 | |
Road & Rail - 0.7% | |||
CSX Corp. | 565,600 | 24,242 | |
Hertz Global Holdings, Inc. (a)(c) | 1,015,000 | 10,515 | |
Saia, Inc. (a) | 300,000 | 3,600 | |
| 38,357 | ||
Trading Companies & Distributors - 0.2% | |||
DXP Enterprises, Inc. (a) | 312,715 | 4,093 | |
Interline Brands, Inc. (a) | 409,400 | 6,878 | |
Rush Enterprises, Inc. Class A (a) | 258,100 | 2,932 | |
| 13,903 | ||
TOTAL INDUSTRIALS | 323,261 | ||
INFORMATION TECHNOLOGY - 50.1% | |||
Communications Equipment - 5.9% | |||
Brocade Communications Systems, Inc. (a) | 3,721,700 | 25,568 | |
Cisco Systems, Inc. (a) | 3,358,300 | 75,461 | |
Emulex Corp. (a) | 778,800 | 8,754 | |
Palm, Inc. (a)(c) | 5,012,090 | 52,076 | |
QUALCOMM, Inc. | 3,688,600 | 144,556 | |
Riverbed Technology, Inc. (a) | 1,489,500 | 33,395 | |
| 339,810 | ||
Computers & Peripherals - 8.8% | |||
Apple, Inc. (a) | 1,913,200 | 367,564 | |
Compellent Technologies, Inc. (a) | 644,084 | 12,804 | |
Dell, Inc. (a) | 2,788,456 | 35,971 | |
SanDisk Corp. (a) | 1,740,950 | 44,255 | |
Seagate Technology | 3,010,900 | 50,372 | |
| 510,966 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Components - 0.2% | |||
BYD Co. Ltd. (H Shares) (a)(c) | 1,132,000 | $ 8,296 | |
Prime View International Co. Ltd. sponsored GDR (a)(e) | 44,300 | 813 | |
| 9,109 | ||
Internet Software & Services - 7.5% | |||
Baidu.com, Inc. sponsored ADR (a) | 20,600 | 8,481 | |
eBay, Inc. (a) | 4,723,200 | 108,728 | |
Google, Inc. Class A (a) | 509,740 | 269,867 | |
NetEase.com, Inc. sponsored ADR (a) | 160,600 | 5,268 | |
Rackspace Hosting, Inc. (a) | 689,600 | 12,565 | |
Tencent Holdings Ltd. | 548,800 | 10,264 | |
VistaPrint Ltd. (a) | 381,300 | 21,357 | |
| 436,530 | ||
IT Services - 1.0% | |||
Cognizant Technology Solutions Corp. Class A (a) | 801,445 | 34,991 | |
Echo Global Logistics, Inc. | 242,900 | 2,932 | |
Visa, Inc. Class A | 217,600 | 17,850 | |
| 55,773 | ||
Semiconductors & Semiconductor Equipment - 9.8% | |||
Advanced Micro Devices, Inc. (a) | 2,918,600 | 21,773 | |
Amkor Technology, Inc. (a)(c) | 2,227,527 | 12,675 | |
Applied Materials, Inc. | 1,595,851 | 19,437 | |
ASM International NV (NASDAQ) (a) | 122,500 | 2,810 | |
ASML Holding NV (NY Shares) | 307,200 | 9,600 | |
Avago Technologies Ltd. | 1,611,600 | 28,010 | |
Cree, Inc. (a) | 300,400 | 16,795 | |
Cypress Semiconductor Corp. (a) | 863,950 | 8,683 | |
Intel Corp. | 4,025,600 | 78,097 | |
KLA-Tencor Corp. | 629,100 | 17,741 | |
Lam Research Corp. (a) | 1,098,500 | 36,261 | |
Marvell Technology Group Ltd. (a) | 2,846,000 | 49,606 | |
Mellanox Technologies Ltd. (a) | 858,000 | 15,761 | |
MEMC Electronic Materials, Inc. (a) | 1,484,700 | 18,678 | |
Micron Technology, Inc. (a) | 1,720,600 | 15,004 | |
NVE Corp. (a)(c) | 49,300 | 2,056 | |
NVIDIA Corp. (a) | 8,526,600 | 131,224 | |
O2Micro International Ltd. sponsored ADR (a) | 1,640,800 | 7,695 | |
Silicon Laboratories, Inc. (a) | 175,406 | 7,409 | |
Standard Microsystems Corp. (a) | 444,600 | 8,870 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Semiconductors & Semiconductor Equipment - continued | |||
Varian Semiconductor Equipment Associates, Inc. (a) | 1,064,800 | $ 31,231 | |
Volterra Semiconductor Corp. (a)(d) | 1,322,300 | 25,772 | |
| 565,188 | ||
Software - 16.9% | |||
Activision Blizzard, Inc. (a) | 2,389,600 | 24,278 | |
ArcSight, Inc. (a) | 497,712 | 11,821 | |
Ariba, Inc. (a) | 2,114,596 | 26,623 | |
BMC Software, Inc. (a) | 233,800 | 9,034 | |
Check Point Software Technologies Ltd. (a) | 1,178,100 | 37,676 | |
Citrix Systems, Inc. (a) | 600,500 | 24,951 | |
DemandTec, Inc. (a) | 855,133 | 5,079 | |
Gameloft (a)(d) | 6,912,973 | 36,450 | |
Informatica Corp. (a) | 584,600 | 13,849 | |
Mentor Graphics Corp. (a) | 627,100 | 5,029 | |
Microsoft Corp. | 16,489,400 | 464,670 | |
Nuance Communications, Inc. (a) | 386,200 | 5,801 | |
Oracle Corp. | 8,490,700 | 195,796 | |
Pegasystems, Inc. | 560,428 | 18,634 | |
Perfect World Co. Ltd. sponsored ADR Class B (a) | 351,729 | 13,116 | |
Sourcefire, Inc. (a) | 489,365 | 10,203 | |
SuccessFactors, Inc. (a) | 625,179 | 10,190 | |
Symantec Corp. (a) | 829,400 | 14,058 | |
Taleo Corp. Class A (a) | 954,485 | 19,386 | |
TiVo, Inc. (a) | 909,175 | 8,201 | |
VMware, Inc. Class A (a) | 496,100 | 22,528 | |
| 977,373 | ||
TOTAL INFORMATION TECHNOLOGY | 2,894,749 | ||
MATERIALS - 1.5% | |||
Chemicals - 1.4% | |||
Celanese Corp. Class A | 344,700 | 10,031 | |
Dow Chemical Co. | 627,600 | 17,002 | |
Solutia, Inc. (a) | 379,689 | 5,221 | |
The Mosaic Co. | 667,200 | 35,702 | |
W.R. Grace & Co. (a) | 461,300 | 11,016 | |
| 78,972 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Metals & Mining - 0.1% | |||
Steel Dynamics, Inc. | 521,700 | $ 7,919 | |
TOTAL MATERIALS | 86,891 | ||
TELECOMMUNICATION SERVICES - 4.2% | |||
Diversified Telecommunication Services - 1.2% | |||
Cbeyond, Inc. (a)(c) | 848,690 | 10,575 | |
Clearwire Corp.: | |||
rights 6/21/10 (a)(c) | 3,206,700 | 1,443 | |
Class A (a)(c) | 3,206,700 | 20,811 | |
Global Crossing Ltd. (a) | 2,231,000 | 31,167 | |
Neutral Tandem, Inc. (a)(c) | 126,100 | 1,950 | |
| 65,946 | ||
Wireless Telecommunication Services - 3.0% | |||
Leap Wireless International, Inc. (a)(c) | 2,291,000 | 30,218 | |
Sprint Nextel Corp. (a) | 43,969,556 | 144,220 | |
| 174,438 | ||
TOTAL TELECOMMUNICATION SERVICES | 240,384 | ||
TOTAL COMMON STOCKS (Cost $5,464,597) | 5,757,934 | ||
Money Market Funds - 4.0% | |||
|
|
|
|
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(f) | 228,972,840 | 228,973 | |
TOTAL INVESTMENT PORTFOLIO - 103.7% (Cost $5,693,570) | 5,986,907 | ||
NET OTHER ASSETS - (3.7)% | (210,960) | ||
NET ASSETS - 100% | $ 5,775,947 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated company |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $3,647,000 or 0.1% of net assets. |
(f) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $8,886,000 or 0.2% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Illumina, Inc. warrants 11/20/10 | 11/21/05 | $ - |
Illumina, Inc. warrants 1/19/11 | 1/18/06 | $ - |
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 | $ 24 |
Fidelity Securities Lending Cash Central Fund | 676 |
Total | $ 700 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliates | Value, | Purchases | Sales Proceeds | Dividend Income | Value, |
Citi Trends, Inc. | $ 18,823 | $ 5,497 | $ 10,841 | $ - | $ - |
Gameloft | 23,134 | 5,384 | - | - | 36,450 |
iRobot Corp. | - | 22,455 | 1,013 | - | 26,675 |
Volterra Semiconductor Corp. | 20,371 | 1,413 | - | - | 25,772 |
Total | $ 62,328 | $ 34,749 | $ 11,854 | $ - | $ 88,897 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 640,842 | $ 640,842 | $ - | $ - |
Consumer Staples | 21,614 | 21,614 | - | - |
Energy | 76,327 | 76,327 | - | - |
Financials | 494,079 | 491,245 | - | 2,834 |
Health Care | 979,787 | 959,029 | 20,758 | - |
Industrials | 323,261 | 313,281 | 9,980 | - |
Information Technology | 2,894,749 | 2,858,299 | 36,450 | - |
Materials | 86,891 | 86,891 | - | - |
Telecommunication Services | 240,384 | 240,384 | - | - |
Money Market Funds | 228,973 | 228,973 | - | - |
Total Investments in Securities: | $ 5,986,907 | $ 5,916,885 | $ 67,188 | $ 2,834 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) |
|
Investments in Securities: | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | 2,834 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in/out of Level 3 | - |
Ending Balance | $ 2,834 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2010 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 89.6% |
Israel | 2.4% |
Bermuda | 1.8% |
Cayman Islands | 1.5% |
Others (individually less than 1%) | 4.7% |
| 100.0% |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $2,529,643,000 of which $878,595,000, $1,249,895,000 and $401,153,000 will expire on July 31, 2010, 2011 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $240,601,000 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $215,789) - See accompanying schedule: Unaffiliated issuers (cost $5,398,407) | $ 5,669,037 |
|
Fidelity Central Funds (cost $228,973) | 228,973 |
|
Other affiliated issuers (cost $66,190) | 88,897 |
|
Total Investments (cost $5,693,570) |
| $ 5,986,907 |
Receivable for investments sold | 90,983 | |
Receivable for fund shares sold | 7,317 | |
Dividends receivable | 573 | |
Distributions receivable from Fidelity Central Funds | 173 | |
Prepaid expenses | 21 | |
Other receivables | 959 | |
Total assets | 6,086,933 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 417 | |
Payable for investments purchased | 65,724 | |
Payable for fund shares redeemed | 10,343 | |
Accrued management fee | 4,241 | |
Other affiliated payables | 1,088 | |
Other payables and accrued expenses | 200 | |
Collateral on securities loaned, at value | 228,973 | |
Total liabilities | 310,986 | |
|
|
|
Net Assets | $ 5,775,947 | |
Net Assets consist of: |
| |
Paid in capital | $ 7,870,776 | |
Accumulated net investment loss | (14,103) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (2,374,015) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 293,289 | |
Net Assets | $ 5,775,947 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | January 31, 2010 (Unaudited) | |
|
|
|
OTC: | $ 42.83 | |
|
|
|
Class K: | $ 42.98 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended January 31, 2010 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 15,555 |
Income from Fidelity Central Funds |
| 700 |
Total income |
| 16,255 |
|
|
|
Expenses | ||
Management fee | $ 17,373 | |
Performance adjustment | 6,755 | |
Transfer agent fees | 5,871 | |
Accounting and security lending fees | 668 | |
Custodian fees and expenses | 68 | |
Independent trustees' compensation | 17 | |
Registration fees | 77 | |
Audit | 41 | |
Legal | 22 | |
Interest | 8 | |
Miscellaneous | 45 | |
Total expenses before reductions | 30,945 | |
Expense reductions | (695) | 30,250 |
Net investment income (loss) | (13,995) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 482,646 | |
Other affiliated issuers | 7,292 |
|
Foreign currency transactions | 153 | |
Capital gain distributions from Fidelity Central Funds | 12 | |
Total net realized gain (loss) |
| 490,103 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 63,843 | |
Assets and liabilities in foreign currencies | 21 | |
Total change in net unrealized appreciation (depreciation) |
| 63,864 |
Net gain (loss) | 553,967 | |
Net increase (decrease) in net assets resulting from operations | $ 539,972 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (13,995) | $ (15,605) |
Net realized gain (loss) | 490,103 | (679,506) |
Change in net unrealized appreciation (depreciation) | 63,864 | (298,374) |
Net increase (decrease) in net assets resulting | 539,972 | (993,485) |
Share transactions - net increase (decrease) | 70,199 | (711,460) |
Total increase (decrease) in net assets | 610,171 | (1,704,945) |
|
|
|
Net Assets | ||
Beginning of period | 5,165,776 | 6,870,721 |
End of period (including accumulated net investment loss of $14,103 and accumulated net investment loss of $108, respectively) | $ 5,775,947 | $ 5,165,776 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - OTC
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 38.73 | $ 44.66 | $ 47.09 | $ 34.70 | $ 35.99 | $ 30.43 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.11) | (.12) | (.20) | (.19) | (.10) G | .37 H |
Net realized and unrealized gain (loss) | 4.21 | (5.81) | (2.23) | 12.58 | (1.19) | 5.60 |
Total from investment operations | 4.10 | (5.93) | (2.43) | 12.39 | (1.29) | 5.97 |
Distributions from net investment income | - | - | - | - | - | (.41) |
Net asset value, end of period | $ 42.83 | $ 38.73 | $ 44.66 | $ 47.09 | $ 34.70 | $ 35.99 |
Total Return B, C | 10.59% | (13.28)% | (5.16)% | 35.71% | (3.58)% | 19.70% |
Ratios to Average Net Assets E, I |
|
|
|
|
| |
Expenses before reductions | 1.10% A | 1.13% | 1.06% | .96% | .80% | .81% |
Expenses net of fee waivers, if any | 1.10% A | 1.13% | 1.06% | .96% | .80% | .81% |
Expenses net of all reductions | 1.08% A | 1.13% | 1.05% | .95% | .75% | .75% |
Net investment income (loss) | (.51)% A | (.37)% | (.42)% | (.45)% | (.26)% G | 1.13% H |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (in millions) | $ 5,122 | $ 4,677 | $ 6,871 | $ 8,778 | $ 7,370 | $ 8,063 |
Portfolio turnover rate F | 139% A | 151% | 145% | 121% | 149% | 117% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a special dividend which amounted to $.03 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.34)%.
H Investment income per share reflects a special dividend which amounted to $.46 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.27)%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended | Years ended July 31, | |
(Unaudited) | 2009 | 2008 G | |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 38.83 | $ 44.68 | $ 47.79 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | (.07) | (.05) | (.05) |
Net realized and unrealized gain (loss) | 4.22 | (5.80) | (3.06) |
Total from investment operations | 4.15 | (5.85) | (3.11) |
Net asset value, end of period | $ 42.98 | $ 38.83 | $ 44.68 |
Total Return B, C | 10.69% | (13.09)% | (6.51)% |
Ratios to Average Net Assets E, H |
|
|
|
Expenses before reductions | .94% A | .92% | .91% A |
Expenses net of fee waivers, if any | .94% A | .92% | .91% A |
Expenses net of all reductions | .91% A | .92% | .91% A |
Net investment income (loss) | (.34)% A | (.17)% | (.47)% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 653,772 | $ 488,683 | $ 93 |
Portfolio turnover rate F | 139% A | 151% | 145% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity OTC Portfolio (the Fund) is a non-diversified fund of Fidelity Securities Fund (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 OTC and Class K 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 commencement of Class K, the Fund began offering conversion privileges between OTC and Class K to eligible shareholders of OTC. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as level 2 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, redemptions-in-kind, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 704,627 |
Gross unrealized depreciation | (478,934) |
Net unrealized appreciation (depreciation) | $ 225,693 |
|
|
Tax cost | $ 5,761,214 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $3,954,681 and $3,863,060, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .35% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class of the Fund, OTC as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .85% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of OTC. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
OTC | $ 5,707 | .22 |
Class K | 164 | .06 |
| $ 5,871 |
|
* Annualized
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $71 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily | Weighted Average | Interest |
Borrower | $ 15,110 | .38% | $ 7 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $11 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $676.
9. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average daily loan balance during the period for which loans were outstanding amounted to $6,750. The weighted average interest rate was .62%. The interest expense amounted to $1 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
10. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $695 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by one hundred fifty-three dollars.
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
OTC |
|
|
|
|
Shares sold | 15,651 | 30,393 | $ 667,307 | $ 1,008,444 |
Conversion to Class K | (520) | (11,534) | (20,492) | (344,688) |
Shares redeemed | (16,305) | (51,952) | (692,590) | (1,755,471) |
Net increase (decrease) | (1,174) | (33,093) | $ (45,775) | $ (1,091,715) |
Class K |
|
|
|
|
Shares sold | 3,872 | 2,992 | $ 170,126 | $ 95,604 |
Conversion from OTC | 518 | 11,521 | 20,492 | 344,688 |
Shares redeemed | (1,764) | (1,930) | (74,644) | (60,037) |
Net increase (decrease) | 2,626 | 12,583 | $ 115,974 | $ 380,255 |
A Conversion transactions for Class K and OTC are for the period August 1, 2009 through August 31, 2009.
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.
By Phone
Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Workplace
Investing
1-800-835-5092
By PC
Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.401k.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research
(U.K.) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisors
FIL Investment Advisors
(U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Northern Trust Company
Chicago, IL
OTC-K-USAN-0310 1.863312.101
Fidelity®
Real Estate Income
Fund
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm |
|
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 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management 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 (August 1, 2009 to January 31, 2010).
Actual Expenses
The first line of the accompanying table 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 under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Actual | 1.00% | $ 1,000.00 | $ 1,173.30 | $ 5.48 |
Hypothetical (5% return per year before expenses) |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
MFA Financial, Inc. | 1.9 | 2.8 |
Ventas, Inc. | 1.4 | 1.4 |
Equity Lifestyle Properties, Inc. | 1.3 | 0.9 |
Acadia Realty Trust (SBI) | 1.2 | 0.9 |
MFA Financial, Inc. Series A, 8.50% | 1.0 | 1.4 |
| 6.8 | |
Top 5 Bonds as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Lexington Master Ltd. Partnership 5.45% 1/15/27 | 2.0 | 1.3 |
Ventas Realty LP 6.5% 6/1/16 | 1.5 | 0.6 |
Acadia Realty Trust 3.75% 12/15/26 | 1.5 | 1.1 |
Omega Healthcare Investors, Inc. 7% 4/1/14 | 1.3 | 1.0 |
Banc of America Large Loan, Inc. Series 2005-MIB1 Class A2, 0.4431% 3/15/22 | 1.1 | 1.3 |
| 7.4 | |
Top Five REIT Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
REITs - Health Care Facilities | 11.1 | 12.6 |
REITs - Shopping Centers | 10.4 | 8.3 |
REITs - Mortgage | 7.3 | 10.0 |
REITs - Management/Investment | 7.1 | 5.5 |
REITs - Apartments | 7.0 | 8.3 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Common Stocks 20.9% |
| ![]() | Common Stocks 20.5% |
| ||
![]() | Preferred Stocks 9.4% |
| ![]() | Preferred Stocks 10.9% |
| ||
![]() | Bonds 45.7% |
| ![]() | Bonds 42.8% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Other Investments 1.0% |
| ![]() | Other Investments 0.3% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 2.9% |
| ** Foreign investments | 3.5% |
|
Semiannual Report
Investments January 31, 2010
Showing Percentage of Net Assets
Common Stocks - 20.9% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 0.5% | |||
Hotels, Restaurants & Leisure - 0.3% | |||
Starwood Hotels & Resorts Worldwide, Inc. | 67,400 | $ 2,245,768 | |
Household Durables - 0.2% | |||
Stanley Martin Communities LLC Class B (a) | 4,620 | 1,391,775 | |
TOTAL CONSUMER DISCRETIONARY | 3,637,543 | ||
FINANCIALS - 18.6% | |||
Capital Markets - 0.1% | |||
HFF, Inc. (a) | 85,509 | 528,446 | |
Real Estate Investment Trusts - 18.5% | |||
Acadia Realty Trust (SBI) | 562,049 | 8,953,441 | |
Alexandria Real Estate Equities, Inc. | 24,900 | 1,487,277 | |
AMB Property Corp. (SBI) | 188,600 | 4,526,400 | |
American Campus Communities, Inc. | 72,600 | 1,862,916 | |
Annaly Capital Management, Inc. | 274,850 | 4,776,893 | |
Anworth Mortgage Asset Corp. | 87,900 | 606,510 | |
Apartment Investment & Management Co. Class A | 167,741 | 2,576,502 | |
Associated Estates Realty Corp. | 161,500 | 1,907,315 | |
AvalonBay Communities, Inc. | 55,725 | 4,269,092 | |
Brandywine Realty Trust (SBI) | 163,900 | 1,840,597 | |
CapLease, Inc. | 148,800 | 682,992 | |
CBL & Associates Properties, Inc. | 251,873 | 2,518,730 | |
Cypress Sharpridge Investments, Inc. | 365,663 | 4,929,137 | |
Cypress Sharpridge Investments, Inc. (f) | 146,458 | 1,974,254 | |
DiamondRock Hospitality Co. | 41,700 | 339,438 | |
Duke Realty LP | 283,683 | 3,211,292 | |
Equity Lifestyle Properties, Inc. | 194,030 | 9,375,530 | |
Equity Residential (SBI) | 66,900 | 2,144,145 | |
Federal Realty Investment Trust (SBI) | 22,100 | 1,422,798 | |
Franklin Street Properties Corp. | 63,317 | 795,262 | |
Government Properties Income Trust | 102,800 | 2,385,988 | |
Health Care REIT, Inc. | 31,900 | 1,371,700 | |
Highwoods Properties, Inc. (SBI) | 108,000 | 3,262,680 | |
Host Hotels & Resorts, Inc. | 13,600 | 144,160 | |
Liberty Property Trust (SBI) | 32,400 | 984,960 | |
MFA Financial, Inc. | 1,920,081 | 14,131,796 | |
Monmouth Real Estate Investment Corp. Class A | 104,000 | 777,920 | |
National Retail Properties, Inc. | 137,700 | 2,781,540 | |
Nationwide Health Properties, Inc. | 103,680 | 3,417,293 | |
Pebblebrook Hotel Trust (a) | 51,600 | 1,063,992 | |
ProLogis Trust | 216,966 | 2,733,772 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Public Storage | 18,000 | $ 1,425,240 | |
Redwood Trust, Inc. | 146,500 | 2,094,950 | |
Regency Centers Corp. (e) | 159,500 | 5,341,655 | |
Simon Property Group, Inc. | 77,643 | 5,590,296 | |
Sun Communities, Inc. | 75,900 | 1,374,549 | |
Sunstone Hotel Investors, Inc. | 636,000 | 5,463,240 | |
The Macerich Co. (e) | 102,393 | 3,158,824 | |
Two Harbors Investment Corp. | 105,500 | 1,002,250 | |
U-Store-It Trust | 338,963 | 2,345,624 | |
UDR, Inc. | 86,701 | 1,349,068 | |
Ventas, Inc. | 240,680 | 10,156,696 | |
Vornado Realty Trust | 39,590 | 2,560,681 | |
Winthrop Realty Trust | 117,290 | 1,460,261 | |
| 136,579,656 | ||
TOTAL FINANCIALS | 137,108,102 | ||
HEALTH CARE - 1.5% | |||
Health Care Providers & Services - 1.5% | |||
Brookdale Senior Living, Inc. (a) | 270,300 | 4,932,975 | |
Capital Senior Living Corp. (a) | 240,200 | 1,210,608 | |
Emeritus Corp. (a)(e) | 243,100 | 4,424,420 | |
Sun Healthcare Group, Inc. (a) | 97,100 | 848,654 | |
| 11,416,657 | ||
MATERIALS - 0.3% | |||
Paper & Forest Products - 0.3% | |||
Weyerhaeuser Co. | 61,500 | 2,453,850 | |
TOTAL COMMON STOCKS (Cost $140,499,350) | 154,616,152 | ||
Preferred Stocks - 10.8% | |||
|
|
|
|
Convertible Preferred Stocks - 1.4% | |||
FINANCIALS - 1.4% | |||
Real Estate Investment Trusts - 1.0% | |||
Alexandria Real Estate Equities, Inc. Series D 7.00% | 20,000 | 410,000 | |
HRPT Properties Trust 6.50% | 80,000 | 1,460,000 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Convertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Lexington Corporate Properties Trust Series C 6.50% | 129,938 | $ 4,572,193 | |
Simon Property Group, Inc. 6.00% | 20,600 | 1,269,784 | |
| 7,711,977 | ||
Real Estate Management & Development - 0.4% | |||
Grubb & Ellis Co.: | |||
12.00% (f) | 22,500 | 2,238,750 | |
12.00% (a)(f) | 5,000 | 497,500 | |
| 2,736,250 | ||
TOTAL FINANCIALS | 10,448,227 | ||
Nonconvertible Preferred Stocks - 9.4% | |||
FINANCIALS - 9.4% | |||
Diversified Financial Services - 0.3% | |||
DRA CRT Acquisition Corp. Series A, 8.50% | 25,000 | 367,500 | |
Red Lion Hotels Capital Trust 9.50% | 77,750 | 1,776,588 | |
W2007 Grace Acquisition I, Inc. Series B, 8.75% (a) | 35,300 | 7,060 | |
| 2,151,148 | ||
Real Estate Investment Trusts - 9.1% | |||
Alexandria Real Estate Equities, Inc. Series C, 8.375% | 67,000 | 1,671,650 | |
American Home Mortgage Investment Corp.: | |||
Series A, 9.375% (a) | 120,300 | 120 | |
Series B, 9.25% (a) | 124,100 | 12 | |
Annaly Capital Management, Inc. Series A, 7.875% | 144,900 | 3,590,622 | |
Anworth Mortgage Asset Corp. Series A, 8.625% | 219,327 | 5,373,512 | |
Apartment Investment & Management Co.: | |||
Series G, 9.375% | 125,698 | 3,137,422 | |
Series T, 8.00% | 57,500 | 1,290,875 | |
CBL & Associates Properties, Inc. (depositary shares) Series C, 7.75% | 20,000 | 415,000 | |
Cedar Shopping Centers, Inc. 8.875% | 82,601 | 2,044,375 | |
CenterPoint Properties Trust Series D, 5.377% | 3,575 | 1,585,513 | |
Colonial Properties Trust (depositary shares) Series D, 8.125% | 39,000 | 893,100 | |
Cousins Properties, Inc. Series A, 7.75% | 80,000 | 1,660,800 | |
Developers Diversified Realty Corp. (depositary shares) Series G, 8.00% | 39,700 | 844,022 | |
Digital Realty Trust, Inc. Series A, 8.50% | 75,000 | 1,872,750 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Duke Realty LP: | |||
8.375% | 128,517 | $ 3,189,792 | |
Series L, 6.60% | 10,666 | 216,306 | |
Eagle Hospitality Properties Trust, Inc. 8.25% (a) | 24,000 | 6,000 | |
Highwoods Properties, Inc. Series B, 8.00% | 300 | 7,500 | |
HomeBanc Mortgage Corp. Series A, 10.00% (a) | 104,685 | 628 | |
Hospitality Properties Trust: | |||
Series B, 8.875% | 80,200 | 2,012,218 | |
Series C, 7.00% | 58,500 | 1,240,200 | |
Host Hotels & Resorts, Inc. Series E, 8.875% | 39,000 | 994,500 | |
HRPT Properties Trust Series B, 8.75% | 23,961 | 585,128 | |
Innkeepers USA Trust Series C, 8.00% (a) | 62,400 | 81,120 | |
Kimco Realty Corp. Series G, 7.75% | 77,300 | 1,881,482 | |
LaSalle Hotel Properties: | |||
Series B, 8.375% | 26,800 | 634,088 | |
Series E, 8.00% | 42,750 | 983,678 | |
Series G, 7.25% | 21,960 | 459,842 | |
LBA Realty Fund II: | |||
Series A, 8.75% (a) | 69,000 | 1,794,000 | |
Series B, 7.625% (a) | 31,240 | 421,740 | |
Lexington Corporate Properties Trust Series B, 8.05% | 29,000 | 608,420 | |
Lexington Realty Trust 7.55% | 23,800 | 473,144 | |
LTC Properties, Inc. Series F, 8.00% | 76,900 | 1,878,667 | |
MFA Financial, Inc. Series A, 8.50% | 304,399 | 7,503,435 | |
Mid-America Apartment Communities, Inc. Series H, 8.30% | 30,800 | 770,000 | |
Newcastle Investment Corp. Series B, 9.75% (a) | 92,100 | 782,850 | |
Omega Healthcare Investors, Inc. Series D, 8.375% | 59,600 | 1,475,100 | |
Parkway Properties, Inc. Series D, 8.00% | 25,000 | 579,000 | |
ProLogis Trust Series C, 8.54% | 84,446 | 4,290,912 | |
PS Business Parks, Inc.: | |||
(depositary shares) Series L, 7.60% | 30,890 | 733,638 | |
Series P, 6.70% | 35,000 | 743,750 | |
Public Storage: | |||
(depositary shares) | 54,800 | 1,394,660 | |
Series I, 7.25% | 10,828 | 271,999 | |
Series K, 7.25% | 21,418 | 534,165 | |
Series L, 6.75% | 1,900 | 44,004 | |
Series N, 7.00% | 4,200 | 102,186 | |
Realty Income Corp. 6.75% | 600 | 14,340 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Regency Centers Corp.: | |||
7.25% | 10,000 | $ 233,000 | |
Series C 7.45% | 18,000 | 419,940 | |
Saul Centers, Inc. 8.00% | 93,700 | 2,253,485 | |
Strategic Hotel & Resorts, Inc. 8.50% (f) | 119,500 | 1,663,440 | |
Sunstone Hotel Investors, Inc. Series A, 8.00% | 20,000 | 451,200 | |
Weingarten Realty Investors (SBI) Series F, 6.50% | 56,230 | 1,166,773 | |
| 67,276,103 | ||
TOTAL FINANCIALS | 69,427,251 | ||
TOTAL PREFERRED STOCKS (Cost $97,891,221) | 79,875,478 |
Corporate Bonds - 40.5% | ||||
| Principal Amount (d) |
| ||
Convertible Bonds - 15.0% | ||||
CONSUMER DISCRETIONARY - 0.1% | ||||
Hotels, Restaurants & Leisure - 0.1% | ||||
Morgans Hotel Group Co. 2.375% 10/15/14 | $ 1,340,000 | 854,250 | ||
FINANCIALS - 14.9% | ||||
Real Estate Investment Trusts - 9.1% | ||||
Acadia Realty Trust 3.75% 12/15/26 | 11,505,000 | 10,972,894 | ||
Alexandria Real Estate Equities, Inc. 3.7% 1/15/27 (f) | 6,895,000 | 6,570,246 | ||
BRE Properties, Inc. 4.125% 8/15/26 | 7,800,000 | 7,726,875 | ||
CapLease, Inc. 7.5% 10/1/27 (f) | 5,180,000 | 4,584,300 | ||
Hospitality Properties Trust 3.8% 3/15/27 | 5,100,000 | 4,991,625 | ||
Inland Real Estate Corp. 4.625% 11/15/26 | 7,970,000 | 7,641,238 | ||
Lexington Corporate Properties Trust 6% 1/15/30 (f) | 5,000,000 | 4,871,875 | ||
National Retail Properties, Inc. 3.95% 9/15/26 | 2,000,000 | 2,063,945 | ||
ProLogis Trust: | ||||
1.875% 11/15/37 | 2,450,000 | 2,177,438 | ||
2.625% 5/15/38 | 1,500,000 | 1,348,125 | ||
The Macerich Co. 3.25% 3/15/12 (f) | 4,800,000 | 4,506,000 | ||
United Dominion Realty Trust, Inc. 3.625% 9/15/11 | 6,000,000 | 5,962,500 | ||
Corporate Bonds - continued | ||||
| Principal Amount (d) | Value | ||
Convertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Investment Trusts - continued | ||||
Washington (REIT): | ||||
3.875% 9/15/26 | $ 1,600,000 | $ 1,576,000 | ||
3.875% 9/15/26 | 2,450,000 | 2,413,250 | ||
| 67,406,311 | |||
Real Estate Management & Development - 5.8% | ||||
BioMed Realty LP: | ||||
3.75% 1/15/30 (f) | 3,000,000 | 2,889,375 | ||
4.5% 10/1/26 (f) | 2,500,000 | 2,487,500 | ||
Brandywine Operating Partnership LP 3.875% 10/15/26 | 1,000,000 | 986,200 | ||
Corporate Office Properties LP 3.5% 9/15/26 (f) | 3,280,000 | 3,149,784 | ||
Duke Realty LP 3.75% 12/1/11 (f) | 2,650,000 | 2,616,875 | ||
ERP Operating LP 3.85% 8/15/26 | 5,500,000 | 5,465,625 | ||
First Potomac Realty Investment LP 4% 12/15/11 (f) | 1,600,000 | 1,520,000 | ||
Home Properties, Inc. 4.125% 11/1/26 (f) | 2,100,000 | 2,047,500 | ||
Kilroy Realty LP 3.25% 4/15/12 (f) | 5,400,000 | 5,089,500 | ||
Lexington Master Ltd. Partnership 5.45% 1/15/27 (f) | 14,950,000 | 14,800,481 | ||
MPT Operating Partnership LP 9.25% 4/1/13 (f) | 1,000,000 | 1,056,500 | ||
SL Green Realty Corp. 3% 3/30/27 (f) | 500,000 | 463,750 | ||
| 42,573,090 | |||
TOTAL FINANCIALS | 109,979,401 | |||
TOTAL CONVERTIBLE BONDS | 110,833,651 | |||
Nonconvertible Bonds - 25.5% | ||||
CONSUMER DISCRETIONARY - 3.2% | ||||
Hotels, Restaurants & Leisure - 0.4% | ||||
Starwood Hotels & Resorts Worldwide, Inc. 6.25% 2/15/13 | 2,000,000 | 2,057,500 | ||
Times Square Hotel Trust 8.528% 8/1/26 (f) | 857,178 | 857,178 | ||
| 2,914,678 | |||
Household Durables - 2.4% | ||||
KB Home: | ||||
5.75% 2/1/14 | 510,000 | 492,150 | ||
5.875% 1/15/15 | 2,000,000 | 1,900,000 | ||
6.25% 6/15/15 | 3,500,000 | 3,316,250 | ||
Corporate Bonds - continued | ||||
| Principal Amount (d) | Value | ||
Nonconvertible Bonds - continued | ||||
CONSUMER DISCRETIONARY - continued | ||||
Household Durables - continued | ||||
KB Home: - continued | ||||
9.1% 9/15/17 | $ 1,000,000 | $ 1,045,000 | ||
Lennar Corp.: | ||||
5.5% 9/1/14 | 1,000,000 | 940,000 | ||
5.95% 10/17/11 | 1,000,000 | 1,005,000 | ||
M/I Homes, Inc. 6.875% 4/1/12 | 2,150,000 | 1,999,500 | ||
Meritage Homes Corp. 6.25% 3/15/15 | 2,500,000 | 2,343,750 | ||
Ryland Group, Inc. 8.4% 5/15/17 | 745,000 | 789,700 | ||
Standard Pacific Corp.: | ||||
6.25% 4/1/14 | 2,200,000 | 1,947,000 | ||
7.75% 3/15/13 | 1,335,000 | 1,254,900 | ||
10.75% 9/15/16 | 1,000,000 | 1,055,000 | ||
| 18,088,250 | |||
Specialty Retail - 0.4% | ||||
Toys 'R' Us Property Co. I LLC 10.75% 7/15/17 (f) | 2,490,000 | 2,732,775 | ||
TOTAL CONSUMER DISCRETIONARY | 23,735,703 | |||
CONSUMER STAPLES - 0.2% | ||||
Food & Staples Retailing - 0.2% | ||||
Ahold Lease Series 2001 A1 pass thru trust certificates 7.82% 1/2/20 | 1,281,883 | 1,371,615 | ||
FINANCIALS - 21.5% | ||||
Commercial Banks - 0.2% | ||||
CapitalSource, Inc. 12.75% 7/15/14 (f) | 1,500,000 | 1,646,250 | ||
Diversified Financial Services - 0.3% | ||||
Icahn Enterprises LP/Icahn Enterprises Finance Corp. 7.75% 1/15/16 (f) | 2,000,000 | 1,905,000 | ||
Real Estate Investment Trusts - 12.1% | ||||
AvalonBay Communities, Inc.: | ||||
4.95% 3/15/13 | 1,000,000 | 1,037,357 | ||
5.5% 1/15/12 | 527,000 | 553,773 | ||
6.625% 9/15/11 | 393,000 | 419,076 | ||
Camden Property Trust 5% 6/15/15 | 1,100,000 | 1,100,138 | ||
Commercial Net Lease Realty, Inc.: | ||||
6.15% 12/15/15 | 800,000 | 814,777 | ||
6.25% 6/15/14 | 3,005,000 | 3,132,418 | ||
Corporate Bonds - continued | ||||
| Principal Amount (d) | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Investment Trusts - continued | ||||
Developers Diversified Realty Corp.: | ||||
4.625% 8/1/10 | $ 900,000 | $ 896,053 | ||
5% 5/3/10 | 1,000,000 | 1,000,608 | ||
5.375% 10/15/12 | 500,000 | 486,785 | ||
7.5% 7/15/18 | 3,250,000 | 3,082,466 | ||
9.625% 3/15/16 | 3,836,000 | 4,160,376 | ||
DuPont Fabros Technology LP 8.5% 12/15/17 (f) | 845,000 | 870,350 | ||
Equity One, Inc.: | ||||
5.375% 10/15/15 | 1,500,000 | 1,456,592 | ||
6.25% 12/15/14 | 3,000,000 | 3,085,281 | ||
Federal Realty Investment Trust: | ||||
4.5% 2/15/11 | 1,500,000 | 1,522,404 | ||
5.65% 6/1/16 | 725,000 | 716,135 | ||
5.95% 8/15/14 | 2,000,000 | 2,125,514 | ||
Health Care Property Investors, Inc.: | ||||
5.65% 12/15/13 | 1,025,000 | 1,060,088 | ||
6% 3/1/15 | 1,000,000 | 1,026,906 | ||
6% 1/30/17 | 1,000,000 | 989,787 | ||
6.3% 9/15/16 | 5,250,000 | 5,301,272 | ||
7.072% 6/8/15 | 1,500,000 | 1,602,237 | ||
Health Care REIT, Inc.: | ||||
6% 11/15/13 | 1,000,000 | 1,053,891 | ||
6.2% 6/1/16 | 750,000 | 770,690 | ||
Healthcare Realty Trust, Inc.: | ||||
6.5% 1/17/17 | 1,875,000 | 1,957,204 | ||
8.125% 5/1/11 | 2,290,000 | 2,429,429 | ||
HMB Capital Trust V 3.8536% 12/15/36 (c)(f)(g) | 2,530,000 | 253 | ||
Hospitality Properties Trust: | ||||
5.625% 3/15/17 | 915,000 | 851,792 | ||
6.75% 2/15/13 | 610,000 | 639,848 | ||
7.875% 8/15/14 | 1,000,000 | 1,076,193 | ||
HRPT Properties Trust: | ||||
0.8538% 3/16/11 (g) | 787,000 | 734,391 | ||
6.5% 1/15/13 | 200,000 | 209,196 | ||
iStar Financial, Inc. 5.95% 10/15/13 | 4,830,000 | 3,018,750 | ||
Kimco Realty Corp. 5.783% 3/15/16 | 450,000 | 460,914 | ||
Nationwide Health Properties, Inc.: | ||||
6% 5/20/15 | 3,122,000 | 3,258,825 | ||
6.25% 2/1/13 | 1,000,000 | 1,058,453 | ||
Corporate Bonds - continued | ||||
| Principal Amount (d) | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Investment Trusts - continued | ||||
Nationwide Health Properties, Inc.: - continued | ||||
6.5% 7/15/11 | $ 2,000,000 | $ 2,084,502 | ||
8.25% 7/1/12 | 1,300,000 | 1,387,053 | ||
Omega Healthcare Investors, Inc.: | ||||
7% 4/1/14 | 9,220,000 | 9,243,050 | ||
7% 1/15/16 | 1,295,000 | 1,298,238 | ||
Pan Pacific Retail Properties, Inc. 5.95% 6/1/14 | 1,750,000 | 1,838,547 | ||
Potlatch Corp. 7.5% 11/1/19 (f) | 1,000,000 | 1,022,500 | ||
Rouse Co. 7.2% 9/15/12 (c) | 2,000,000 | 2,050,000 | ||
Senior Housing Properties Trust: | ||||
7.875% 4/15/15 | 355,000 | 355,000 | ||
8.625% 1/15/12 | 5,900,000 | 6,121,250 | ||
Shurgard Storage Centers, Inc.: | ||||
5.875% 3/15/13 | 1,000,000 | 1,057,345 | ||
7.75% 2/22/11 | 500,000 | 524,845 | ||
UDR, Inc. 5.5% 4/1/14 | 500,000 | 513,208 | ||
United Dominion Realty Trust, Inc.: | ||||
5% 1/15/12 | 1,000,000 | 1,024,856 | ||
5.13% 1/15/14 | 500,000 | 503,103 | ||
6.05% 6/1/13 | 2,500,000 | 2,617,600 | ||
Weingarten Realty Investors: | ||||
4.857% 1/15/14 | 2,500,000 | 2,504,915 | ||
5.263% 5/15/12 | 1,000,000 | 1,002,715 | ||
| 89,108,949 | |||
Real Estate Management & Development - 8.7% | ||||
AMB Property LP: | ||||
5.9% 8/15/13 | 400,000 | 416,400 | ||
6.125% 12/1/16 | 1,000,000 | 1,022,553 | ||
6.3% 6/1/13 | 2,095,000 | 2,226,369 | ||
Brandywine Operating Partnership LP: | ||||
5.4% 11/1/14 | 1,750,000 | 1,707,696 | ||
5.75% 4/1/12 | 1,000,000 | 1,035,434 | ||
7.5% 5/15/15 | 1,000,000 | 1,057,119 | ||
CB Richard Ellis Services, Inc. 11.625% 6/15/17 | 1,500,000 | 1,680,000 | ||
Colonial Properties Trust: | ||||
6.15% 4/15/13 | 1,500,000 | 1,486,709 | ||
6.25% 6/15/14 | 1,594,000 | 1,592,197 | ||
6.875% 8/15/12 | 1,000,000 | 1,027,500 | ||
Corporate Bonds - continued | ||||
| Principal Amount (d) | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Management & Development - continued | ||||
Colonial Realty LP 6.05% 9/1/16 | $ 2,500,000 | $ 2,375,468 | ||
Duke Realty LP: | ||||
5.625% 8/15/11 | 560,000 | 583,157 | ||
6.25% 5/15/13 | 750,000 | 792,067 | ||
7.375% 2/15/15 | 1,500,000 | 1,632,878 | ||
ERP Operating LP 5.2% 4/1/13 | 1,000,000 | 1,036,963 | ||
Forest City Enterprises, Inc. 7.625% 6/1/15 | 1,200,000 | 1,086,000 | ||
Highwoods/Forsyth LP 5.85% 3/15/17 | 2,800,000 | 2,710,798 | ||
Host Hotels & Resorts LP: | ||||
6.875% 11/1/14 | 500,000 | 500,000 | ||
9% 5/15/17 (f) | 750,000 | 810,000 | ||
Liberty Property LP: | ||||
5.125% 3/2/15 | 2,200,000 | 2,180,383 | ||
6.375% 8/15/12 | 2,679,000 | 2,865,911 | ||
Post Apartment Homes LP: | ||||
5.45% 6/1/12 | 713,000 | 713,732 | ||
6.3% 6/1/13 | 2,000,000 | 2,071,664 | ||
Regency Centers LP: | ||||
5.25% 8/1/15 | 4,509,000 | 4,555,772 | ||
5.875% 6/15/17 | 400,000 | 395,841 | ||
Rouse Co. LP/TRC, Inc. 6.75% 5/1/13 (c)(f) | 650,000 | 656,500 | ||
Simon Property Group LP: | ||||
5.65% 2/1/20 | 1,400,000 | 1,401,016 | ||
6.75% 5/15/14 | 1,200,000 | 1,334,118 | ||
Toys 'R' Us Property Co. II LLC 8.5% 12/1/17 (f) | 1,000,000 | 1,022,500 | ||
Ventas Realty LP: | ||||
6.5% 6/1/16 | 2,340,000 | 2,281,500 | ||
6.5% 6/1/16 | 11,370,000 | 11,085,750 | ||
6.625% 10/15/14 | 6,160,000 | 6,160,000 | ||
7.125% 6/1/15 | 3,147,000 | 3,178,470 | ||
| 64,682,465 | |||
Thrifts & Mortgage Finance - 0.2% | ||||
Wrightwood Capital LLC 9% 6/1/14 (c)(f) | 4,000,000 | 1,360,000 | ||
TOTAL FINANCIALS | 158,702,664 | |||
Corporate Bonds - continued | ||||
| Principal Amount (d) | Value | ||
Nonconvertible Bonds - continued | ||||
HEALTH CARE - 0.6% | ||||
Health Care Providers & Services - 0.6% | ||||
Skilled Healthcare Group, Inc. 11% 1/15/14 | $ 1,000,000 | $ 1,050,000 | ||
Sun Healthcare Group, Inc. 9.125% 4/15/15 | 3,570,000 | 3,659,250 | ||
| 4,709,250 | |||
TOTAL NONCONVERTIBLE BONDS | 188,519,232 | |||
TOTAL CORPORATE BONDS (Cost $279,888,878) | 299,352,883 | |||
Asset-Backed Securities - 3.5% | ||||
| ||||
Anthracite CDO I Ltd. Series 2002-CIBA Class B, 6.633% 5/24/37 (f) | 1,384,000 | 1,217,920 | ||
Anthracite CDO II Ltd. Series 2002-2A Class F, 7.6% 12/24/37 (f) | 2,260,000 | 904,000 | ||
Anthracite CDO III Ltd./Anthracite CDO III Corp. Series 2004-1A Class A, 0.5906% 3/23/19 (f)(g) | 416,089 | 266,297 | ||
Brascan Real Estate CDO Ltd./Brascan Real Estate CDO Corp. Series 2004-1A Class A, 0.5988% 1/20/40 (f)(g) | 2,816,737 | 2,591,398 | ||
Capital Trust RE CDO Ltd. Series 2005-1A Class D, 1.7306% 3/20/50 (f)(g) | 2,250,000 | 225,000 | ||
Capital Trust RE CDO Ltd./Capital Trust RE CDO Corp. Series 2005-3A Class A2, 5.16% 6/25/35 (f) | 5,375,000 | 5,213,750 | ||
CapitalSource Real Estate Loan Trust Series 2006-1A Class A2A, 0.4988% 1/20/37 (f)(g) | 1,271,490 | 635,745 | ||
CapLease CDO Ltd. Series 2005-1A Class A, 4.926% 1/29/40 (f) | 2,478,796 | 1,611,218 | ||
Conseco Finance Securitizations Corp. Series 2002-2 Class M2, 9.163% 3/1/33 | 500,000 | 359,026 | ||
Crest Clarendon Street Ltd./Crest Clarendon Corp. Series 2002-1A: | ||||
Class B1, 6.065% 12/28/35 (f) | 1,570,000 | 1,051,900 | ||
Class B2, 1.6006% 12/28/35 (f)(g) | 1,575,000 | 582,996 | ||
Class D, 9% 12/28/35 (f) | 500,000 | 127,050 | ||
Crest Dartmouth Street Ltd./Crest Dartmouth Street Corp. Series 2003-1A Class D, 9% 6/28/38 (f) | 997,000 | 249,250 | ||
Crest Ltd. Series 2002-IGA Class A, 0.6988% 7/28/17 (f)(g) | 1,827,106 | 1,644,395 | ||
Asset-Backed Securities - continued | ||||
| Principal Amount (d) | Value | ||
Fairfield Street Solar Corp. Series 2004-1A Class E1, 3.6206% 11/28/39 (f)(g) | $ 550,000 | $ 38,500 | ||
Green Tree Financial Corp. Series 1996-4 Class M1, 7.75% 6/15/27 | 1,788,179 | 1,570,205 | ||
GSR Mortgage Loan Trust Series 2005-HE3 Class B3, 2.7306% 6/25/35 (g)(j) | 1,259,000 | 44,506 | ||
Guggenheim Structured Real Estate Funding Ltd./Guggenheim Structured Real Estate Funding LLC Series 2005-2A: | ||||
Class D, 1.7806% 8/26/30 (f)(g) | 742,947 | 74,295 | ||
Class E, 2.2306% 8/26/30 (f)(g) | 1,439,191 | 71,960 | ||
Leafs CMBS I Ltd./Leafs CMBS I Corp. Series 2002-1A Class A2, 0.7806% 11/20/17 (f)(g) | 1,926,008 | 1,738,222 | ||
Lehman ABS Manufactured Housing Contract Trust Series 2001-B Class M2, 7.17% 3/15/28 | 1,500,000 | 239,236 | ||
Merit Securities Corp. Series 13 Class M1, 7.9882% 12/28/33 | 1,923,000 | 1,726,799 | ||
N-Star Real Estate CDO Ltd. Series 1A Class C1B, 7.696% 8/28/38 (f) | 883,000 | 451,213 | ||
Prima Capital CDO Ltd./Prima Capital CDO Corp. Series 2005-1A Class A2, 4.646% 7/24/39 (f) | 2,691,239 | 2,287,553 | ||
Taberna Preferred Funding III Ltd. Series 2005-3A Class D, 2.9281% 2/5/36 (f)(g) | 3,321,288 | 332 | ||
Wachovia Ltd./Wachovia LLC: | ||||
Series 2006-1 Class 1ML, 5.7506% 9/25/26 (f)(g) | 2,000,000 | 120,000 | ||
Series 2006-1A Class A1A, 0.5106% 9/25/26 (f)(g) | 1,349,000 | 903,830 | ||
Wrightwood Capital Real Estate CDO Ltd. Series 2005-1A Class F, 2.2166% 11/21/40 (f)(g) | 250,000 | 7,500 | ||
TOTAL ASSET-BACKED SECURITIES (Cost $40,970,649) | 25,954,096 | |||
Collateralized Mortgage Obligations - 3.0% | ||||
| ||||
Private Sponsor - 3.0% | ||||
Banc of America Large Loan, Inc. Series 2005-MIB1 Class A2, 0.4431% 3/15/22 (f)(g) | 8,453,182 | 8,051,205 | ||
COMM pass-thru certificates Series 2007-FL14 Class AJ, 0.4131% 6/15/22 (f)(g) | 3,250,000 | 2,634,470 | ||
Countrywide Home Loans, Inc.: | ||||
Series 2002-38 Class B3, 5% 2/25/18 (f) | 134,216 | 18,146 | ||
Series 2002-R2 Class 2B3, 5.108% 7/25/33 (f)(g) | 242,307 | 86,069 | ||
Series 2003-40 Class B3, 4.5% 10/25/18 (f) | 180,906 | 20,913 | ||
Series 2003-R2 Class B3, 5.5% 5/25/43 (f) | 429,804 | 28,904 | ||
Collateralized Mortgage Obligations - continued | ||||
| Principal Amount (d) | Value | ||
Private Sponsor - continued | ||||
Countrywide Home Loans, Inc.: - continued | ||||
Series 2003-R3: | ||||
Class B2, 5.5% 11/25/33 (f) | $ 1,634,448 | $ 488,311 | ||
Class B3, 5.5% 11/25/33 (f) | 489,406 | 100,388 | ||
Series 2004-R1 Class 1B3, 5.5% 11/25/34 (f)(g) | 411,755 | 25,475 | ||
Diversified REIT Trust Series 2000-1A: | ||||
Class F, 6.971% 3/8/10 (f) | 1,512,000 | 895,860 | ||
Class G, 6.971% 3/8/10 (f) | 1,720,000 | 847,100 | ||
Merrill Lynch Floating Trust floater Series 2006-1 Class TM, 0.7331% 6/15/22 (f)(g) | 5,198,066 | 4,262,414 | ||
Merrill Lynch Mortgage Investors Trust Series 1998-C3 Class F, 6% 12/15/30 (f) | 1,240,000 | 1,140,800 | ||
Merrill Lynch Mortgage Trust Series 2002-MW1 Class E, 6.219% 7/12/34 (f) | 1,600,000 | 1,474,982 | ||
RESI Finance LP/RESI Finance DE Corp. floater: | ||||
Series 2003-B Class B9, 12.1813% 7/10/35 (f)(g) | 628,131 | 388,813 | ||
Series 2004-C Class B5, 1.5813% 9/10/36 (f)(g) | 347,303 | 155,001 | ||
Series 2005-A Class B6, 2.2313% 3/10/37 (f)(g) | 1,843,306 | 327,371 | ||
Series 2005-B Class B6, 1.8313% 6/10/37 (f)(g) | 907,253 | 79,748 | ||
Series 2005-D Class B6, 2.4831% 12/15/37 (f)(g) | 457,705 | 27,325 | ||
Series 2006-B Class B6, 1.9331% 7/15/38 (f)(g) | 924,201 | 25,878 | ||
Residential Funding Mortgage Securities I, Inc. Series 2002-S20 Class M3, 5.25% 12/25/17 | 53,517 | 16,876 | ||
Residential Funding Securities Corp. Series 2002-RM1 Class BI1, 5.5% 12/25/17 (f) | 105,991 | 50,616 | ||
RESIX Finance Ltd. floater: | ||||
Series 2003-D Class B8, 6.7313% 12/10/35 (f)(g) | 552,949 | 200,831 | ||
Series 2004-A Class B7, 4.4813% 2/10/36 (f)(g) | 559,731 | 274,940 | ||
Series 2004-B Class B7, 4.2313% 2/10/36 (f)(g) | 691,332 | 197,237 | ||
Series 2005-C Class B7, 3.3313% 9/10/37 (f)(g) | 1,865,752 | 157,283 | ||
Series 2006-B Class B7, 4.0831% 7/15/38 (f)(g) | 924,201 | 35,767 | ||
Series 2007-A Class BB, 3.5831% 2/15/39 (f)(g) | 782,583 | 10,643 | ||
TOTAL PRIVATE SPONSOR | 22,023,366 | |||
U.S. Government Agency - 0.0% | ||||
Fannie Mae REMIC Trust: | ||||
Series 2001-W3 subordinate REMIC pass thru certificates, Class B3, 7% 9/25/41 (j) | 212,930 | 86,989 | ||
Series 2002-W1 subordinate REMIC pass thru certificates, Class 3B3, 4.7716% 2/25/42 (f)(g) | 130,242 | 51,058 | ||
Collateralized Mortgage Obligations - continued | ||||
| Principal Amount (d) | Value | ||
U.S. Government Agency - continued | ||||
Fannie Mae REMIC Trust: - continued | ||||
Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 5.75% 12/25/42 (j) | $ 285,642 | $ 78,291 | ||
Series 2003-W10 subordinate REMIC pass thru certificates, Class 2B3, 4.8531% 6/25/43 (f)(g) | 174,237 | 50,088 | ||
Series 2003-W4 subordinate REMIC pass thru certificates, Class 2B3, 5.0213% 10/25/42 (f)(g) | 75,505 | 18,540 | ||
TOTAL U.S. GOVERNMENT AGENCY | 284,966 | |||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $32,089,697) | 22,308,332 | |||
Commercial Mortgage Securities - 13.7% | ||||
| ||||
American Tower Trust I Series 2007-1A Class D, 5.9568% 4/15/37 (f) | 3,200,000 | 3,340,000 | ||
Asset Securitization Corp. Series 1997-D4: | ||||
Class B1, 7.525% 4/14/29 | 1,565,000 | 1,642,003 | ||
Class B2, 7.525% 4/14/29 | 560,000 | 571,200 | ||
Banc of America Commercial Mortgage, Inc. sequential payer Series 2002-2 Class F, 5.487% 7/11/43 | 4,185,000 | 3,997,866 | ||
Banc of America Large Loan, Inc. floater Series 2005-MIB1 Class K, 2.2331% 3/15/22 (f)(g) | 820,000 | 328,000 | ||
COMM pass-thru certificates Series 2001-J1A Class F, 6.958% 2/14/34 (f) | 2,600,000 | 2,612,560 | ||
Credit Suisse First Boston Mortgage Securities Corp.: | ||||
Series 1997-C2 Class F, 7.46% 1/17/35 (g) | 3,500,000 | 3,818,019 | ||
Series 2004-TF2A Class AX, 0.0145% 11/15/19 (f)(g)(i) | 4,659,932 | 466 | ||
Credit Suisse/Morgan Stanley Commercial Mortgage Trust: | ||||
floater Series 2006-HC1A: | ||||
Class A2, 0.4931% 5/15/23 (f)(g) | 5,800,000 | 5,296,180 | ||
Class D, 0.7031% 5/15/23 (f)(g) | 1,250,000 | 1,062,775 | ||
Class F, 0.8331% 5/15/23 (f)(g) | 1,825,000 | 1,462,501 | ||
Series 2006-HC1A Class A1, 0.4231% 5/15/23 (f)(g) | 4,849,299 | 4,489,583 | ||
Crest Ltd. Series 2001-1A Class C, 9% 2/25/34 (f) | 1,000,000 | 400,000 | ||
Crown Castle Towers LLC/Crown Atlantic Holdings Sub LLC/Crown Communication, Inc. Series 2006-1A: | ||||
Class D, 5.7724% 11/15/36 (f) | 915,000 | 963,038 | ||
Class E, 6.0652% 11/15/36 (f) | 800,000 | 842,000 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount (d) | Value | ||
Deutsche Mortgage & Asset Receiving Corp. Series 1998-C1 Class J, 6.22% 6/15/31 | $ 1,200,000 | $ 764,482 | ||
DLJ Commercial Mortgage Corp. Series 1998-CG1 Class B4, 7.2262% 6/10/31 (f)(g) | 2,500,000 | 2,565,372 | ||
First Union National Bank Commercial Mortgage Trust Series 2001-C4 Class H, 7.036% 12/12/33 (f) | 2,000,000 | 1,949,114 | ||
G-Force LLC sequential payer Series 2005-RRA Class A2, 4.83% 8/22/36 (f) | 7,545,000 | 6,413,250 | ||
GE Capital Commercial Mortgage Corp.: | ||||
Series 2001-3 Class C, 6.51% 6/10/38 | 820,000 | 808,415 | ||
Series 2002-1A Class H, 7.1598% 12/10/35 (f)(g) | 991,000 | 858,130 | ||
Global Towers Partners Acquisition Partners I LLC Series 2007-1A Class G, 7.8737% 5/15/37 (f) | 1,000,000 | 1,000,000 | ||
GMAC Commercial Mortgage Securities, Inc.: | ||||
Series 1997-C2: | ||||
Class F, 6.75% 4/15/29 (g) | 2,767,000 | 2,883,125 | ||
Class G, 6.75% 4/15/29 (g) | 1,250,000 | 643,792 | ||
Series 1999-C3: | ||||
Class G, 6.974% 8/15/36 (f) | 2,498,656 | 2,486,163 | ||
Class J, 6.974% 8/15/36 (f) | 1,500,000 | 1,425,319 | ||
Series 2000-C1: | ||||
Class H, 7% 3/15/33 (f) | 950,000 | 889,048 | ||
Class K, 7% 3/15/33 | 1,100,000 | 763,057 | ||
Series 2002-C3 Class D, 5.27% 7/10/39 | 3,000,000 | 2,709,096 | ||
Greenwich Capital Commercial Funding Corp.: | ||||
sequential payer Series 2003-C1 Class D, 4.29% 7/5/35 (f) | 2,000,000 | 1,793,673 | ||
Series 2002-C1 Class H, 5.903% 1/11/35 (f) | 880,000 | 814,490 | ||
GS Mortgage Securities Corp. II floater Series 2007-EOP Class L, 1.5347% 3/1/20 (f)(g) | 1,400,000 | 1,060,640 | ||
JPMorgan Chase Commercial Mortgage Securities Corp.: | ||||
Series 2001-A: | ||||
Class G, 6% 10/15/32 (f)(g) | 2,895,000 | 175,057 | ||
Class X, 1.3473% 10/15/32 (f)(g)(i) | 10,917,314 | 88,703 | ||
Series 2009-IWST Class D, 7.443% 12/1/27 (f) | 3,250,000 | 3,124,765 | ||
JPMorgan Chase Commercial Mortgage Securities Trust floater Series 2005-FL1A Class A2, 0.4131% 2/15/19 (f)(g) | 2,764,862 | 2,571,846 | ||
JPMorgan Commercial Mortgage Finance Corp.: | ||||
Series 1997-C5 Class F, 7.5605% 9/15/29 | 2,720,000 | 2,715,126 | ||
Series 1999-C8: | ||||
Class G, 6% 7/15/31 (f) | 1,385,000 | 1,142,565 | ||
Class H, 6% 7/15/31 (f) | 2,638,000 | 158,280 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount (d) | Value | ||
LB Commercial Conduit Mortgage Trust Series 1998-C4 Class G, 5.6% 10/15/35 (f) | $ 2,820,000 | $ 2,834,100 | ||
LB-UBS Commercial Mortgage Trust sequential payer Series 2006-C7 Class AM, 5.378% 11/15/38 | 2,040,000 | 1,740,252 | ||
Leafs CMBS I Ltd./Leafs CMBS I Corp. Series 2002-1A Class B, 4.13% 11/20/37 (f) | 1,850,000 | 1,591,000 | ||
Merrill Lynch Financial Asset, Inc. Series 2005-CA16: | ||||
Class F, 4.384% 7/12/15 | CAD | 710,000 | 269,550 | |
Class G, 4.384% 7/12/15 | CAD | 355,000 | 129,640 | |
Class H, 4.384% 7/12/15 | CAD | 236,000 | 82,930 | |
Class J, 4.384% 7/12/15 | CAD | 355,000 | 120,096 | |
Class K, 4.384% 7/12/15 | CAD | 355,000 | 115,662 | |
Class L, 4.384% 7/12/15 | CAD | 236,000 | 74,079 | |
Class M, 4.384% 7/12/15 | CAD | 995,000 | 246,739 | |
Merrill Lynch Mortgage Investors Trust: | ||||
Series 1999-C1 Class G, 6.71% 11/15/31 (f) | 3,135,788 | 156,789 | ||
Series 2001-HRPA Class H, 6.778% 2/3/16 (f) | 1,965,000 | 1,906,050 | ||
Merrill Lynch Mortgage Trust Series 2006-C1 Class AM, 5.6558% 5/12/39 (g) | 1,200,000 | 1,021,713 | ||
Mezz Capital Commercial Mortgage Trust Series 2004-C1: | ||||
Class D, 6.988% 9/15/13 | 750,000 | 30,000 | ||
Class E, 7.983% 10/15/13 | 1,453,000 | 43,590 | ||
Class IO, 7.9258% 1/15/18 (g)(i) | 5,819,818 | 814,775 | ||
Morgan Stanley Capital I Trust: | ||||
sequential payer: | ||||
Series 2004-RR2 Class A2, 5.45% 10/28/33 (f) | 2,543,954 | 2,359,517 | ||
Series 2006-HQ10 Class AM, 5.36% 11/12/41 | 7,450,000 | 6,479,237 | ||
Series 2005-HQ7 Class E, 5.2073% 11/14/42 (g) | 850,000 | 484,500 | ||
Morgan Stanley Dean Witter Capital I Trust Series 2001-IQA Class F, 6.79% 12/18/32 (f) | 1,486,185 | 1,449,807 | ||
Multi Security Asset Trust sequential payer Series 2005-RR4A Class A2, 4.83% 11/28/35 (f) | 3,662,899 | 3,259,980 | ||
SBA CMBS Trust Series 2006-1A Class J, 7.825% 11/15/36 (f) | 1,000,000 | 1,038,750 | ||
Structured Asset Securities Corp. Series 1997-LLI Class F, 7.3% 10/12/34 (f) | 2,170,000 | 2,182,065 | ||
TimberStar Trust I Series 2006-1 Class F, 7.5296% 10/15/36 (f) | 2,000,000 | 1,900,000 | ||
UBS Commercial Mortgage Trust Series 2007-FL1 Class F, 0.8081% 7/15/24 (f)(g) | 1,200,000 | 205,330 | ||
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $108,134,781) | 101,165,850 | |||
Floating Rate Loans - 0.9% | ||||
| Principal Amount (d) | Value | ||
CONSUMER DISCRETIONARY - 0.0% | ||||
Specialty Retail - 0.0% | ||||
The Pep Boys - Manny, Moe & Jack term loan 2.26% 10/27/13 (g) | $ 28,257 | $ 26,773 | ||
FINANCIALS - 0.9% | ||||
Diversified Financial Services - 0.2% | ||||
Pilot Travel Centers LLC Tranche B, term loan 11/24/15 (g) | 1,000,000 | 1,010,000 | ||
TowerCo Finance LLC term loan 6% 11/24/14 (g) | 170,000 | 171,700 | ||
| 1,181,700 | |||
Real Estate Management & Development - 0.7% | ||||
Realogy Corp.: | ||||
Credit-Linked Deposit 3.231% 10/10/13 (g) | 660,016 | 584,114 | ||
Tranche 2LN, term loan 13.5% 10/15/17 | 2,500,000 | 2,700,000 | ||
Tranche B, term loan 3.2507% 10/10/13 (g) | 2,451,489 | 2,169,568 | ||
| 5,453,682 | |||
TOTAL FINANCIALS | 6,635,382 | |||
TOTAL FLOATING RATE LOANS (Cost $6,368,590) | 6,662,155 |
Preferred Securities - 0.1% | |||
|
|
|
|
FINANCIALS - 0.1% | |||
Diversified Financial Services - 0.1% | |||
Cairn High Grade ABS CDO PLC Series 2006-2A Class SUB, 1/13/47 (f) | 1,000,000 | 0 | |
Crest Clarendon Street 2002-1 Ltd. Series 2002-1A Class PS, 12/28/35 (f) | 500,000 | 65,700 | |
Crest Dartmouth Street 2003 1 Ltd. Series 2003-1A Class PS, 6/28/38 (f) | 1,220,000 | 276,818 | |
Harp High Grade CDO I Ltd. Series 2006-1, 7/8/46 (f) | 810,000 | 8 | |
Ipswich Street CDO Series 2006-1, 6/27/46 (c)(f) | 1,350,000 | 0 | |
Kent Funding III Ltd. 11/5/47 (f) | 1,650,000 | 0 | |
| 342,526 | ||
TOTAL PREFERRED SECURITIES (Cost $5,771,203) | 342,526 | ||
Money Market Funds - 7.3% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.17% (h) | 48,486,061 | $ 48,486,061 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(h) | 5,684,304 | 5,684,304 | |
TOTAL MONEY MARKET FUNDS (Cost $54,170,365) | 54,170,365 | ||
TOTAL INVESTMENT PORTFOLIO - 100.7% (Cost $765,784,734) | 744,447,837 | ||
NET OTHER ASSETS - (0.7)% | (5,403,655) | ||
NET ASSETS - 100% | $ 739,044,182 |
Currency Abbreviations | ||
CAD | - | Canadian dollar |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Non-income producing - Issuer is in default. |
(d) Principal amount is stated in United States dollars unless otherwise noted. |
(e) Security or a portion of the security is on loan at period end. |
(f) 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 $188,590,868 or 25.5% of net assets. |
(g) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(h) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(i) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool held as of the end of the period. |
(j) 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 $209,786 or 0.0% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Fannie Mae REMIC Trust: |
| |
Series 2001-W3 subordinate REMIC pass thru certificates, Class B3, 7% 9/25/41 | 5/21/03 | $ 184,517 |
Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 5.75% 12/25/42 | 3/25/03 | $ 215,258 |
GSR Mortgage Loan Trust Series 2005-HE3 Class B3, 2.7306% 6/25/35 | 6/3/05 | $ 1,110,697 |
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 | $ 59,644 |
Fidelity Securities Lending Cash Central Fund | 1,907 |
Total | $ 61,551 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 3,637,543 | $ 2,245,768 | $ - | $ 1,391,775 |
Financials | 216,983,580 | 198,429,488 | 15,173,939 | 3,380,153 |
Health Care | 11,416,657 | 11,416,657 | - | - |
Materials | 2,453,850 | 2,453,850 | - | - |
Corporate Bonds | 299,352,883 | - | 297,135,452 | 2,217,431 |
Asset-Backed Securities | 25,954,096 | - | 10,971,620 | 14,982,476 |
Collateralized Mortgage Obligations | 22,308,332 | - | 19,530,346 | 2,777,986 |
Commercial Mortgage Securities | 101,165,850 | - | 78,935,982 | 22,229,868 |
Floating Rate Loans | 6,662,155 | - | 6,662,155 | - |
Preferred Securities | 342,526 | - | - | 342,526 |
Money Market Funds | 54,170,365 | 54,170,365 | - | - |
Total Investments in Securities: | $ 744,447,837 | $ 268,716,128 | $ 428,409,494 | $ 47,322,215 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Equities - Consumer Discretionary | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | 1,391,775 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in/out of Level 3 | - |
Ending Balance | $ 1,391,775 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2010 | $ - |
Equities - Financials | |
Beginning Balance | $ 3,099,870 |
Total Realized Gain (Loss) | (2,073,397) |
Total Unrealized Gain (Loss) | 2,625,701 |
Cost of Purchases | - |
Proceeds of Sales | (271,913) |
Amortization/Accretion | - |
Transfers in/out of Level 3 | (108) |
Ending Balance | $ 3,380,153 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2010 | $ 390,763 |
Corporate Bonds | |
Beginning Balance | $ 2,343,856 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (114,908) |
Cost of Purchases | - |
Proceeds of Sales | (11,517) |
Amortization/Accretion | - |
Transfers in/out of Level 3 | - |
Ending Balance | $ 2,217,431 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2010 | $ (114,908) |
Asset-Backed Securities | |
Beginning Balance | $ 11,832,848 |
Total Realized Gain (Loss) | 18,342 |
Total Unrealized Gain (Loss) | 4,149,901 |
Cost of Purchases | 1,325,364 |
Proceeds of Sales | (418,165) |
Amortization/Accretion | (355,609) |
Transfers in/out of Level 3 | (1,570,205) |
Ending Balance | $ 14,982,476 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2010 | $ 3,305,253 |
Collateralized Mortgage Obligations | |
Beginning Balance | $ 2,036,201 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 2,677,504 |
Cost of Purchases | - |
Proceeds of Sales | (337,724) |
Amortization/Accretion | (757,348) |
Transfers in/out of Level 3 | (840,647) |
Ending Balance | $ 2,777,986 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2010 | $ 2,081,571 |
Commercial Mortgage Securities | |
Beginning Balance | $ 6,157,272 |
Total Realized Gain (Loss) | 2,114 |
Total Unrealized Gain (Loss) | 4,718,557 |
Cost of Purchases | 4,993,168 |
Proceeds of Sales | (14,684) |
Amortization/Accretion | (1,924,552) |
Transfers in/out of Level 3 | 8,297,993 |
Ending Balance | $ 22,229,868 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2010 | $ 3,824,464 |
Preferred Securities | |
Beginning Balance | $ 159,115 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 71,195 |
Cost of Purchases | 113,400 |
Proceeds of Sales | - |
Amortization/Accretion | (1,184) |
Transfers in/out of Level 3 | - |
Ending Balance | $ 342,526 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2010 | $ 71,195 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited): |
U.S. Government and U.S. Government Agency Obligations | 0.0% |
AAA,AA,A | 13.8% |
BBB | 19.0% |
BB | 10.0% |
B | 3.2% |
CCC,CC,C | 3.3% |
D | 0.0% |
Not Rated | 12.4% |
Equities | 31.7% |
Short-Term Investments and Net Other Assets | 6.6% |
| 100.0% |
We have used ratings from Moody's® Investors Service, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $15,326,444 of which $1,722,470 and $13,603,974 will expire on July 31, 2016 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $17,966,365 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $5,520,769) - See accompanying schedule: Unaffiliated issuers (cost $711,614,369) | $ 690,277,472 |
|
Fidelity Central Funds (cost $54,170,365) | 54,170,365 |
|
Total Investments (cost $765,784,734) |
| $ 744,447,837 |
Cash | 1,656,455 | |
Receivable for investments sold | 62,238 | |
Receivable for fund shares sold | 2,235,825 | |
Dividends receivable | 505,910 | |
Interest receivable | 5,111,553 | |
Distributions receivable from Fidelity Central Funds | 9,085 | |
Prepaid expenses | 2,006 | |
Other receivables | 2,177 | |
Total assets | 754,033,086 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 7,887,270 | |
Payable for fund shares redeemed | 787,418 | |
Accrued management fee | 337,605 | |
Other affiliated payables | 220,185 | |
Other payables and accrued expenses | 72,122 | |
Collateral on securities loaned, at value | 5,684,304 | |
Total liabilities | 14,988,904 | |
|
|
|
Net Assets | $ 739,044,182 | |
Net Assets consist of: |
| |
Paid in capital | $ 786,537,278 | |
Undistributed net investment income | 3,819,203 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (29,979,063) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (21,333,236) | |
Net Assets, for 79,671,584 shares outstanding | $ 739,044,182 | |
Net Asset Value, offering price and redemption price per share ($739,044,182 ÷ 79,671,584 shares) | $ 9.28 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
| Six months ended January 31, 2010 | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 5,467,623 |
Interest |
| 15,879,377 |
Income from Fidelity Central Funds |
| 61,551 |
Total income |
| 21,408,551 |
|
|
|
Expenses | ||
Management fee | $ 1,723,773 | |
Transfer agent fees | 1,051,791 | |
Accounting and security lending fees | 143,815 | |
Custodian fees and expenses | 9,681 | |
Independent trustees' compensation | 1,692 | |
Registration fees | 50,382 | |
Audit | 75,101 | |
Legal | 8,426 | |
Miscellaneous | 4,115 | |
Total expenses before reductions | 3,068,776 | |
Expense reductions | (11,163) | 3,057,613 |
Net investment income (loss) | 18,350,938 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 5,806,598 | |
Foreign currency transactions | 3,796 | |
Total net realized gain (loss) |
| 5,810,394 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 67,094,337 | |
Assets and liabilities in foreign currencies | (722) | |
Total change in net unrealized appreciation (depreciation) |
| 67,093,615 |
Net gain (loss) | 72,904,009 | |
Net increase (decrease) in net assets resulting from operations | $ 91,254,947 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 18,350,938 | $ 24,141,669 |
Net realized gain (loss) | 5,810,394 | (25,453,488) |
Change in net unrealized appreciation (depreciation) | 67,093,615 | (12,255,306) |
Net increase (decrease) in net assets resulting | 91,254,947 | (13,567,125) |
Distributions to shareholders from net investment income | (23,092,431) | (21,152,317) |
Share transactions | 268,807,057 | 268,384,038 |
Reinvestment of distributions | 21,274,819 | 19,305,679 |
Cost of shares redeemed | (82,553,606) | (183,099,387) |
Net increase (decrease) in net assets resulting from share transactions | 207,528,270 | 104,590,330 |
Redemption fees | 84,554 | 250,779 |
Total increase (decrease) in net assets | 275,775,340 | 70,121,667 |
|
|
|
Net Assets | ||
Beginning of period | 463,268,842 | 393,147,175 |
End of period (including undistributed net investment income of $3,819,203 and undistributed net investment income of $8,560,696, respectively) | $ 739,044,182 | $ 463,268,842 |
Other Information Shares | ||
Sold | 30,028,598 | 36,427,202 |
Issued in reinvestment of distributions | 2,387,035 | 2,602,609 |
Redeemed | (9,174,413) | (24,280,916) |
Net increase (decrease) | 23,241,220 | 14,748,895 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
| Six months ended | Years ended July 31, | ||||
2010 | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 8.21 | $ 9.43 | $ 11.22 | $ 11.78 | $ 12.17 | $ 11.49 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .27 | .54 | .59 | .63 | .66 | .60 |
Net realized and unrealized gain (loss) | 1.14 | (1.27) | (1.48) | (.37) | (.11) | .83 |
Total from investment operations | 1.41 | (.73) | (.89) | .26 | .55 | 1.43 |
Distributions from net investment income | (.34) | (.50) | (.66) | (.58) | (.67) | (.57) |
Distributions from net realized gain | - | - | (.24) | (.24) | (.27) | (.18) |
Total distributions | (.34) | (.50) | (.90) | (.82) | (.94) | (.75) |
Redemption fees added to paid in capital D | - H | .01 | - H | - H | - H | - H |
Net asset value, end of period | $ 9.28 | $ 8.21 | $ 9.43 | $ 11.22 | $ 11.78 | $ 12.17 |
Total Return B, C | 17.33% | (6.92)% | (8.43)% | 2.00% | 4.82% | 12.90% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | 1.00% A | 1.00% | .94% | .88% | .85% | .85% |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | .94% | .88% | .85% | .85% |
Expenses net of all reductions | .99% A | 1.00% | .94% | .88% | .85% | .85% |
Net investment income (loss) | 5.97% A | 7.15% | 5.77% | 5.30% | 5.61% | 5.13% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 739,044 | $ 463,269 | $ 393,147 | $ 516,268 | $ 521,265 | $ 667,403 |
Portfolio turnover rate F | 28% A | 47% | 32% | 45% | 27% | 30% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010
1. Organization.
Fidelity Real Estate Income Fund (the Fund) is a fund of Fidelity Securities Fund (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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs)and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, floating rate loans and preferred securities, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. For asset backed securities, collateralized mortgage obligations and commercial mortgage securities, pricing services utilize
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and types as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds ,including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions. A significant portion of the Fund's securities are valued at period end by a single source or dealer.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. For certain lower credit quality securitized assets that have contractual cash flows (for example, asset backed securities, collateralized mortgage obligations and commercial mortgage-backed securities), changes in estimated cash flows are periodically evaluated and the estimated yield is adjusted on a prospective basis over the remaining life of the security, resulting in increases or decreases to Interest Income in the accompanying Statement of Operations. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), defaulted bonds, market discount, partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 60,070,487 |
|
Gross unrealized depreciation | (83,031,135) |
|
Net unrealized appreciation (depreciation) | $ (22,960,648) |
|
|
|
|
Tax cost | $ 767,408,485 |
|
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the Fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.
Semiannual Report
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $264,840,807 and $78,837,202, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .34% of average net assets.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $2,881 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $1,116 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements - continued
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $1,907.
9. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of the Fund's operating expenses. During the period, this reimbursement reduced the Fund's expenses by $6,821.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $4,163 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $179.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Securities Fund and Shareholders of Fidelity Real Estate Income Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Real Estate Income Fund (the Fund), a fund of Fidelity Securities Fund, including the schedule of investments, as of January 31, 2010, and the related statements of operations for the six months in the period then ended, the statement of changes in net assets for the six months in the period then ended and for the year ended July 31, 2009, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of January 31, 2010, by correspondence with the custodians, agent banks and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Real Estate Income Fund as of January 31, 2010, the results of its operations for the six months in the period then ended, the changes in its net assets for the six months in the period then ended and for the year ended July 31, 2009, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Boston, Massachusetts
March 19, 2010
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
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For mutual fund and brokerage trading.
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(computer_graphic)
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* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
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Semiannual Report
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Semiannual Report
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Semiannual Report
Investment Adviser
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REI-USAN-0310 1.789734.106
Fidelity®
Series Small Cap Opportunities
Fund
Fidelity Series Small Cap Opportunities Fund
Class F
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 for Fidelity Series Small Cap Opportunities Fund or 1-800-835-5092 for Class F to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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 (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.
Semiannual Report
Shareholder Expense Example - continued
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 | Beginning | Ending | Expenses Paid |
Series Small Cap Opportunities | 1.02% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,138.30 | $ 5.50 |
Hypothetical A |
| $ 1,000.00 | $ 1,020.06 | $ 5.19 |
Class F | .78% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,139.80 | $ 4.21 |
Hypothetical A |
| $ 1,000.00 | $ 1,021.27 | $ 3.97 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Wright Express Corp. | 1.3 | 1.7 |
Forestar Group, Inc. | 1.2 | 1.0 |
Waddell & Reed Financial, Inc. Class A | 1.1 | 1.0 |
PacWest Bancorp | 1.1 | 0.6 |
TCF Financial Corp. | 1.1 | 0.7 |
Alexandria Real Estate Equities, Inc. | 1.1 | 0.8 |
Astoria Financial Corp. | 1.1 | 1.0 |
Washington Federal, Inc. | 1.1 | 0.9 |
National Penn Bancshares, Inc. | 1.1 | 0.0 |
Platinum Underwriters Holdings Ltd. | 1.1 | 0.0 |
| 11.3 | |
Top Five Market Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Financials | 20.8 | 19.7 |
Information Technology | 19.4 | 19.4 |
Consumer Discretionary | 14.1 | 13.4 |
Health Care | 14.0 | 13.6 |
Industrials | 12.8 | 13.9 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks and |
| ![]() | Stocks and |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 8.6% |
| ** Foreign investments | 8.5% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.2% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 14.1% | |||
Auto Components - 1.4% | |||
BorgWarner, Inc. | 294,600 | $ 10,337,514 | |
Tenneco, Inc. (a) | 568,900 | 10,058,152 | |
| 20,395,666 | ||
Hotels, Restaurants & Leisure - 2.2% | |||
Red Robin Gourmet Burgers, Inc. (a) | 218,360 | 4,024,375 | |
Vail Resorts, Inc. (a)(c) | 259,500 | 8,745,150 | |
WMS Industries, Inc. (a) | 181,000 | 6,711,480 | |
Wyndham Worldwide Corp. | 589,600 | 12,375,704 | |
| 31,856,709 | ||
Household Durables - 2.4% | |||
iRobot Corp. (a)(c) | 305,983 | 4,834,531 | |
Meritage Homes Corp. (a) | 499,200 | 11,177,088 | |
Mohawk Industries, Inc. (a) | 208,600 | 8,638,126 | |
Tempur-Pedic International, Inc. (a) | 407,954 | 10,153,975 | |
| 34,803,720 | ||
Internet & Catalog Retail - 0.3% | |||
NutriSystem, Inc. (c) | 206,000 | 4,194,160 | |
Media - 1.5% | |||
John Wiley & Sons, Inc. Class A | 272,000 | 11,356,000 | |
Lamar Advertising Co. Class A (a) | 367,600 | 10,513,360 | |
| 21,869,360 | ||
Specialty Retail - 4.3% | |||
Cabela's, Inc. Class A (a)(c) | 656,738 | 10,586,617 | |
Fourlis Holdings SA | 646,900 | 7,874,262 | |
Genesco, Inc. (a) | 110,771 | 2,611,980 | |
Gymboree Corp. (a) | 209,900 | 8,188,199 | |
RadioShack Corp. | 593,000 | 11,575,360 | |
Shoe Carnival, Inc. (a) | 585,114 | 10,690,033 | |
Signet Jewelers Ltd. (a) | 354,300 | 9,693,648 | |
| 61,220,099 | ||
Textiles, Apparel & Luxury Goods - 2.0% | |||
Deckers Outdoor Corp. (a) | 103,400 | 10,150,778 | |
G-III Apparel Group Ltd. (a) | 578,900 | 10,078,649 | |
Iconix Brand Group, Inc. (a) | 594,400 | 7,501,328 | |
| 27,730,755 | ||
TOTAL CONSUMER DISCRETIONARY | 202,070,469 | ||
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - 3.3% | |||
Beverages - 0.4% | |||
Hansen Natural Corp. (a) | 149,500 | $ 5,748,275 | |
Food & Staples Retailing - 0.7% | |||
BJ's Wholesale Club, Inc. (a) | 168,900 | 5,707,131 | |
Casey's General Stores, Inc. | 125,200 | 3,841,136 | |
| 9,548,267 | ||
Food Products - 1.0% | |||
Green Mountain Coffee Roasters, Inc. (a)(c) | 87,600 | 7,430,232 | |
Tyson Foods, Inc. Class A | 498,600 | 6,890,652 | |
| 14,320,884 | ||
Personal Products - 1.2% | |||
Chattem, Inc. (a) | 75,800 | 7,084,268 | |
Elizabeth Arden, Inc. (a) | 557,800 | 8,657,056 | |
Schiff Nutrition International, Inc. | 263,900 | 2,111,200 | |
| 17,852,524 | ||
TOTAL CONSUMER STAPLES | 47,469,950 | ||
ENERGY - 5.0% | |||
Energy Equipment & Services - 1.6% | |||
Atwood Oceanics, Inc. (a) | 260,300 | 8,725,256 | |
Hornbeck Offshore Services, Inc. (a) | 268,800 | 5,781,888 | |
Superior Energy Services, Inc. (a) | 379,200 | 8,710,224 | |
| 23,217,368 | ||
Oil, Gas & Consumable Fuels - 3.4% | |||
Cloud Peak Energy, Inc. | 583,000 | 7,876,330 | |
Comstock Resources, Inc. (a) | 276,100 | 10,765,139 | |
EXCO Resources, Inc. | 636,048 | 11,156,282 | |
Mariner Energy, Inc. (a) | 539,600 | 7,797,220 | |
Whiting Petroleum Corp. (a) | 154,900 | 10,310,144 | |
| 47,905,115 | ||
TOTAL ENERGY | 71,122,483 | ||
FINANCIALS - 20.3% | |||
Capital Markets - 2.8% | |||
Affiliated Managers Group, Inc. (a)(c) | 186,300 | 11,284,191 | |
optionsXpress Holdings, Inc. | 923,702 | 13,255,124 | |
Waddell & Reed Financial, Inc. Class A | 511,800 | 16,034,694 | |
| 40,574,009 | ||
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Commercial Banks - 6.7% | |||
Associated Banc-Corp. | 1,113,528 | $ 14,164,076 | |
CapitalSource, Inc. | 3,127,900 | 14,982,641 | |
City National Corp. | 289,000 | 14,273,710 | |
National Penn Bancshares, Inc. | 2,527,700 | 15,166,200 | |
PacWest Bancorp | 770,100 | 15,979,575 | |
TCF Financial Corp. (c) | 1,081,400 | 15,831,696 | |
Western Liberty Bancorp (a)(d) | 1,000,000 | 6,280,000 | |
| 96,677,898 | ||
Insurance - 3.7% | |||
Amerisafe, Inc. (a) | 662,000 | 11,452,600 | |
Endurance Specialty Holdings Ltd. | 372,400 | 13,413,848 | |
Max Capital Group Ltd. | 565,911 | 12,744,316 | |
Platinum Underwriters Holdings Ltd. | 413,699 | 15,000,726 | |
| 52,611,490 | ||
Real Estate Investment Trusts - 2.8% | |||
Alexandria Real Estate Equities, Inc. (c) | 264,400 | 15,792,612 | |
Highwoods Properties, Inc. (SBI) | 277,200 | 8,374,212 | |
Home Properties, Inc. | 194,700 | 8,631,051 | |
National Retail Properties, Inc. | 352,900 | 7,128,580 | |
| 39,926,455 | ||
Real Estate Management & Development - 2.1% | |||
Forestar Group, Inc. (a) | 890,200 | 16,531,014 | |
Jones Lang LaSalle, Inc. | 226,800 | 12,929,868 | |
| 29,460,882 | ||
Thrifts & Mortgage Finance - 2.2% | |||
Astoria Financial Corp. | 1,190,000 | 15,708,000 | |
Washington Federal, Inc. | 841,600 | 15,695,840 | |
| 31,403,840 | ||
TOTAL FINANCIALS | 290,654,574 | ||
HEALTH CARE - 14.0% | |||
Biotechnology - 1.8% | |||
BioMarin Pharmaceutical, Inc. (a) | 207,800 | 4,037,554 | |
Human Genome Sciences, Inc. (a) | 150,244 | 3,976,959 | |
Incyte Corp. (a)(c) | 511,554 | 5,463,397 | |
Micromet, Inc. (a) | 125,600 | 975,912 | |
OREXIGEN Therapeutics, Inc. (a) | 413,300 | 2,628,588 | |
Protalix BioTherapeutics, Inc. (a)(c) | 20,059 | 137,404 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
Regeneron Pharmaceuticals, Inc. (a) | 150,800 | $ 4,020,328 | |
Theravance, Inc. (a)(c) | 385,400 | 4,227,838 | |
| 25,467,980 | ||
Health Care Equipment & Supplies - 2.3% | |||
Angiodynamics, Inc. (a) | 464,900 | 7,461,645 | |
DexCom, Inc. (a) | 554,300 | 5,021,958 | |
Masimo Corp. (a) | 22,700 | 630,152 | |
Orthofix International NV (a) | 199,616 | 6,014,430 | |
Quidel Corp. (a) | 12,600 | 167,328 | |
Volcano Corp. (a) | 406,800 | 8,058,708 | |
Zoll Medical Corp. (a) | 180,900 | 5,036,256 | |
| 32,390,477 | ||
Health Care Providers & Services - 5.8% | |||
Alliance Healthcare Services, Inc. (a) | 1,097,922 | 5,522,548 | |
BioScrip, Inc. (a) | 838,900 | 6,098,803 | |
Brookdale Senior Living, Inc. (a) | 330,800 | 6,037,100 | |
Catalyst Health Solutions, Inc. (a) | 86,700 | 3,409,911 | |
CIGNA Corp. | 200,400 | 6,767,508 | |
Emergency Medical Services Corp. Class A (a) | 201,200 | 10,565,012 | |
Hanger Orthopedic Group, Inc. (a) | 279,001 | 4,536,556 | |
Health Net, Inc. (a) | 465,961 | 11,304,214 | |
LHC Group, Inc. (a) | 169,600 | 5,221,984 | |
Odyssey Healthcare, Inc. (a) | 435,500 | 6,393,140 | |
PSS World Medical, Inc. (a) | 276,900 | 5,681,988 | |
RehabCare Group, Inc. (a) | 239,950 | 6,972,947 | |
ResCare, Inc. (a) | 123,330 | 1,111,203 | |
Sun Healthcare Group, Inc. (a) | 382,000 | 3,338,680 | |
| 82,961,594 | ||
Health Care Technology - 1.0% | |||
Allscripts-Misys Healthcare Solutions, Inc. (a) | 66,900 | 1,101,174 | |
Computer Programs & Systems, Inc. | 76,455 | 2,877,002 | |
SXC Health Solutions Corp. (a) | 158,700 | 7,451,910 | |
Transcend Services, Inc. (a) | 176,344 | 3,308,213 | |
| 14,738,299 | ||
Life Sciences Tools & Services - 2.2% | |||
Bruker BioSciences Corp. (a) | 609,200 | 7,474,884 | |
eResearchTechnology, Inc. (a) | 906,739 | 5,576,445 | |
ICON PLC sponsored ADR (a) | 263,782 | 6,552,345 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Life Sciences Tools & Services - continued | |||
Illumina, Inc. (a)(c) | 177,600 | $ 6,516,144 | |
QIAGEN NV (a) | 248,400 | 5,405,184 | |
| 31,525,002 | ||
Pharmaceuticals - 0.9% | |||
Ardea Biosciences, Inc. (a) | 265,101 | 3,881,079 | |
King Pharmaceuticals, Inc. (a) | 300,000 | 3,603,000 | |
ViroPharma, Inc. (a) | 580,800 | 5,738,304 | |
| 13,222,383 | ||
TOTAL HEALTH CARE | 200,305,735 | ||
INDUSTRIALS - 12.8% | |||
Aerospace & Defense - 0.9% | |||
Alliant Techsystems, Inc. (a) | 63,200 | 4,990,904 | |
Teledyne Technologies, Inc. (a) | 201,300 | 7,500,438 | |
| 12,491,342 | ||
Air Freight & Logistics - 0.5% | |||
UTI Worldwide, Inc. | 531,400 | 7,296,122 | |
Airlines - 0.4% | |||
Alaska Air Group, Inc. (a) | 177,100 | 5,550,314 | |
Building Products - 1.3% | |||
AAON, Inc. | 332,600 | 6,848,234 | |
Armstrong World Industries, Inc. (a) | 329,900 | 12,018,257 | |
| 18,866,491 | ||
Commercial Services & Supplies - 0.9% | |||
United Stationers, Inc. (a) | 237,800 | 12,974,368 | |
Construction & Engineering - 1.2% | |||
Chicago Bridge & Iron Co. NV (NY Shares) (a) | 364,000 | 7,385,560 | |
Granite Construction, Inc. | 329,900 | 10,187,312 | |
| 17,572,872 | ||
Electrical Equipment - 1.4% | |||
General Cable Corp. (a)(c) | 398,885 | 11,607,554 | |
Regal-Beloit Corp. | 115,600 | 5,479,440 | |
SunPower Corp. Class A (a)(c) | 149,300 | 3,044,227 | |
| 20,131,221 | ||
Industrial Conglomerates - 0.6% | |||
Carlisle Companies, Inc. | 274,200 | 9,191,184 | |
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Machinery - 2.9% | |||
Gardner Denver, Inc. | 176,400 | $ 7,029,540 | |
Graco, Inc. | 243,540 | 6,500,083 | |
John Bean Technologies Corp. | 503,300 | 8,299,417 | |
Manitowoc Co., Inc. | 785,700 | 8,564,130 | |
Timken Co. | 517,400 | 11,594,934 | |
| 41,988,104 | ||
Professional Services - 0.9% | |||
ICF International, Inc. (a) | 221,300 | 5,180,633 | |
Kforce, Inc. (a) | 607,500 | 8,122,275 | |
| 13,302,908 | ||
Road & Rail - 0.6% | |||
Kansas City Southern (a) | 263,300 | 7,820,010 | |
Trading Companies & Distributors - 1.2% | |||
Interline Brands, Inc. (a) | 635,400 | 10,674,720 | |
WESCO International, Inc. (a) | 236,200 | 6,547,464 | |
| 17,222,184 | ||
TOTAL INDUSTRIALS | 184,407,120 | ||
INFORMATION TECHNOLOGY - 19.4% | |||
Communications Equipment - 2.6% | |||
Adtran, Inc. | 545,900 | 11,573,080 | |
DragonWave, Inc. (a)(c) | 431,700 | 4,836,590 | |
Emulex Corp. (a) | 695,800 | 7,820,792 | |
NETGEAR, Inc. (a) | 444,900 | 9,182,736 | |
SeaChange International, Inc. (a) | 549,600 | 3,555,912 | |
| 36,969,110 | ||
Computers & Peripherals - 1.6% | |||
QLogic Corp. (a) | 262,300 | 4,508,937 | |
Super Micro Computer, Inc. (a) | 874,291 | 10,814,980 | |
Synaptics, Inc. (a)(c) | 318,957 | 8,072,802 | |
| 23,396,719 | ||
Electronic Equipment & Components - 1.6% | |||
Anixter International, Inc. (a)(c) | 212,200 | 8,844,496 | |
IPG Photonics Corp. (a) | 510,700 | 7,354,080 | |
Trimble Navigation Ltd. (a) | 294,000 | 6,729,660 | |
| 22,928,236 | ||
Internet Software & Services - 2.1% | |||
Art Technology Group, Inc. (a) | 1,664,132 | 7,455,311 | |
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - continued | |||
j2 Global Communications, Inc. (a) | 352,930 | $ 7,249,182 | |
Open Text Corp. (a) | 146,400 | 5,768,103 | |
Rackspace Hosting, Inc. (a)(c) | 531,400 | 9,682,108 | |
| 30,154,704 | ||
IT Services - 2.5% | |||
Alliance Data Systems Corp. (a)(c) | 140,100 | 8,330,346 | |
Sapient Corp. (a) | 1,229,700 | 9,530,175 | |
Wright Express Corp. (a) | 622,800 | 18,285,405 | |
| 36,145,926 | ||
Semiconductors & Semiconductor Equipment - 3.7% | |||
Amkor Technology, Inc. (a)(c) | 1,271,000 | 7,231,990 | |
Atheros Communications, Inc. (a) | 232,400 | 7,453,068 | |
Brooks Automation, Inc. (a) | 682,756 | 5,694,185 | |
Micron Technology, Inc. (a) | 357,600 | 3,118,272 | |
Omnivision Technologies, Inc. (a) | 545,500 | 7,036,950 | |
PMC-Sierra, Inc. (a) | 259,872 | 2,065,982 | |
Standard Microsystems Corp. (a) | 186,007 | 3,710,840 | |
Teradyne, Inc. (a)(c) | 650,300 | 6,073,802 | |
Ultratech, Inc. (a) | 350,500 | 4,780,820 | |
Varian Semiconductor Equipment Associates, Inc. (a) | 201,100 | 5,898,263 | |
| 53,064,172 | ||
Software - 5.3% | |||
Ariba, Inc. (a) | 525,771 | 6,619,457 | |
JDA Software Group, Inc. (a) | 301,600 | 7,904,936 | |
Mentor Graphics Corp. (a) | 1,407,900 | 11,291,358 | |
Nuance Communications, Inc. (a) | 960,400 | 14,425,208 | |
Parametric Technology Corp. (a) | 880,400 | 14,579,424 | |
Radiant Systems, Inc. (a) | 668,200 | 7,717,710 | |
Sybase, Inc. (a) | 174,400 | 7,092,848 | |
Synopsys, Inc. (a) | 292,900 | 6,229,983 | |
| 75,860,924 | ||
TOTAL INFORMATION TECHNOLOGY | 278,519,791 | ||
MATERIALS - 5.0% | |||
Chemicals - 1.8% | |||
Cabot Corp. | 349,100 | 8,999,798 | |
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Chemicals - continued | |||
Rockwood Holdings, Inc. (a) | 422,800 | $ 9,263,548 | |
W.R. Grace & Co. (a) | 352,700 | 8,422,476 | |
| 26,685,822 | ||
Construction Materials - 0.4% | |||
Texas Industries, Inc. (c) | 155,000 | 5,260,700 | |
Metals & Mining - 2.8% | |||
Carpenter Technology Corp. | 391,100 | 10,481,480 | |
Commercial Metals Co. | 456,600 | 6,273,684 | |
Compass Minerals International, Inc. | 157,700 | 9,941,408 | |
First Uranium Corp. (a)(c) | 1,402,600 | 2,518,463 | |
Red Back Mining, Inc. (a) | 741,600 | 11,145,153 | |
| 40,360,188 | ||
TOTAL MATERIALS | 72,306,710 | ||
TELECOMMUNICATION SERVICES - 1.1% | |||
Diversified Telecommunication Services - 0.5% | |||
AboveNet, Inc. (a) | 61,100 | 3,582,904 | |
Global Crossing Ltd. (a) | 273,592 | 3,822,080 | |
| 7,404,984 | ||
Wireless Telecommunication Services - 0.6% | |||
NII Holdings, Inc. (a) | 124,100 | 4,063,034 | |
Syniverse Holdings, Inc. (a) | 240,400 | 4,041,124 | |
| 8,104,158 | ||
TOTAL TELECOMMUNICATION SERVICES | 15,509,142 | ||
UTILITIES - 3.2% | |||
Electric Utilities - 1.6% | |||
Cleco Corp. | 273,800 | 7,096,896 | |
Great Plains Energy, Inc. | 246,200 | 4,397,132 | |
Portland General Electric Co. | 241,100 | 4,701,450 | |
Westar Energy, Inc. | 293,600 | 6,262,488 | |
| 22,457,966 | ||
Gas Utilities - 1.0% | |||
Northwest Natural Gas Co. | 157,500 | 6,830,775 | |
Southwest Gas Corp. | 275,700 | 7,628,619 | |
| 14,459,394 | ||
Common Stocks - continued | |||
Shares | Value | ||
UTILITIES - continued | |||
Multi-Utilities - 0.4% | |||
NorthWestern Energy Corp. | 264,600 | $ 6,469,470 | |
Water Utilities - 0.2% | |||
Southwest Water Co. | 471,300 | 2,856,078 | |
TOTAL UTILITIES | 46,242,908 | ||
TOTAL COMMON STOCKS (Cost $1,253,882,474) | 1,408,608,882 | ||
Nonconvertible Preferred Stocks - 0.5% | |||
|
|
|
|
FINANCIALS - 0.5% | |||
Real Estate Investment Trusts - 0.5% | |||
Developers Diversified Realty Corp. (depositary shares) Series G, 8.00% | 315,384 | 6,705,064 |
U.S. Treasury Obligations - 0.0% | ||||
| Principal Amount |
| ||
U.S. Treasury Bills, yield at date of purchase 0.02% to 0.02% 2/11/10 (e) | $ 575,000 | 574,999 |
Money Market Funds - 5.9% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.17% (f) | 16,729,534 | 16,729,534 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(f) | 68,375,551 | 68,375,551 | |
TOTAL MONEY MARKET FUNDS (Cost $85,105,085) | 85,105,085 | ||
TOTAL INVESTMENT PORTFOLIO - 104.6% (Cost $1,342,195,946) | 1,500,994,030 | ||
NET OTHER ASSETS - (4.6)% | (66,403,337) | ||
NET ASSETS - 100% | $ 1,434,590,693 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/ | |||
Purchased | |||||
Equity Index Contracts | |||||
132 NYFE Russell Mini Index Contracts | March 2010 | $ 7,933,200 | $ (334,395) |
The face value of futures purchased as a percentage of net assets - 0.6% |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated company |
(e) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $574,999. |
(f) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
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 | $ 34,167 |
Fidelity Securities Lending Cash Central Fund | 499,701 |
Total | $ 533,868 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
International Assets Holding Corp (formerly known as FCStone Group, Inc.) | $ 7,828,236 | $ - | $ 7,305,943 | $ - | $ - |
Western Liberty Bancorp | - | 1,775,200 | - | - | 6,280,000 |
Total | $ 7,828,236 | $ 1,775,200 | $ 7,305,943 | $ - | $ 6,280,000 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 202,070,469 | $ 194,196,207 | $ 7,874,262 | $ - |
Consumer Staples | 47,469,950 | 47,469,950 | - | - |
Energy | 71,122,483 | 71,122,483 | - | - |
Financials | 297,359,638 | 297,359,638 | - | - |
Health Care | 200,305,735 | 200,305,735 | - | - |
Industrials | 184,407,120 | 184,407,120 | - | - |
Information Technology | 278,519,791 | 278,519,791 | - | - |
Materials | 72,306,710 | 72,306,710 | - | - |
Telecommunication Services | 15,509,142 | 15,509,142 | - | - |
Utilities | 46,242,908 | 46,242,908 | - | - |
U.S. Government and Government Agency Obligations | 574,999 | - | 574,999 | - |
Money Market Funds | 85,105,085 | 85,105,085 | - | - |
Total Investments in Securities: | $ 1,500,994,030 | $ 1,492,544,769 | $ 8,449,261 | $ - |
Derivative Instruments: | ||||
Liabilities | ||||
Futures Contracts | $ (334,395) | $ (334,395) | $ - | $ - |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by risk exposure as of January 31, 2010. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Risk Exposure / | Value | |
| Asset | Liability |
Equity Risk | ||
Futures Contracts (a) | $ - | $ (334,395) |
Total Value of Derivatives | $ - | $ (334,395) |
(a) Reflects cumulative appreciation/(depreciation) on futures contracts as disclosed on the Schedule of Investments. Only the period end variation margin is separately disclosed on the Statement of Assets and Liabilities. |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $328,938,313 of which $3,862,752, $19,665,075 and $305,410,486 will expire on July 31, 2015, 2016 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $257,575,605 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $64,929,641) - See accompanying schedule: Unaffiliated issuers (cost $1,247,430,375) | $ 1,409,608,945 |
|
Fidelity Central Funds (cost $85,105,085) | 85,105,085 |
|
Other affiliated issuers (cost $9,660,486) | 6,280,000 |
|
Total Investments (cost $1,342,195,946) |
| $ 1,500,994,030 |
Receivable for investments sold | 10,432,265 | |
Receivable for fund shares sold | 1,920,830 | |
Dividends receivable | 560,039 | |
Distributions receivable from Fidelity Central Funds | 83,734 | |
Prepaid expenses | 5,294 | |
Other receivables | 92,336 | |
Total assets | 1,514,088,528 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 28,606 | |
Payable for investments purchased | 9,540,222 | |
Payable for fund shares redeemed | 201,757 | |
Accrued management fee | 934,148 | |
Payable for daily variation on futures contracts | 59,400 | |
Other affiliated payables | 318,494 | |
Other payables and accrued expenses | 39,657 | |
Collateral on securities loaned, at value | 68,375,551 | |
Total liabilities | 79,497,835 | |
|
|
|
Net Assets | $ 1,434,590,693 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,694,711,871 | |
Accumulated net investment loss | (681,331) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (417,914,213) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 158,474,366 | |
Net Assets | $ 1,434,590,693 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Series Small Cap Opportunities: | $ 7.90 | |
|
|
|
Class F: | $ 7.91 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 5,973,865 |
Interest |
| 537 |
Income from Fidelity Central Funds (including $499,701 from security lending) |
| 533,868 |
Total income |
| 6,508,270 |
|
|
|
Expenses | ||
Management fee | $ 5,090,858 | |
Performance adjustment | 123,493 | |
Transfer agent fees | 1,712,796 | |
Accounting and security lending fees | 260,457 | |
Custodian fees and expenses | 39,489 | |
Independent trustees' compensation | 4,161 | |
Audit | 33,317 | |
Legal | 4,660 | |
Miscellaneous | 11,359 | |
Total expenses before reductions | 7,280,590 | |
Expense reductions | (90,989) | 7,189,601 |
Net investment income (loss) | (681,331) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 169,609,197 | |
Other affiliated issuers | 2,732,496 | |
Foreign currency transactions | (26,648) | |
Futures contracts | 2,053,953 | |
Capital gain distributions from Fidelity Central Funds | 2,413 | |
Total net realized gain (loss) |
| 174,371,411 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 6,017,567 | |
Assets and liabilities in foreign currencies | 5,697 | |
Futures contracts | (1,072,153) | |
Total change in net unrealized appreciation (depreciation) |
| 4,951,111 |
Net gain (loss) | 179,322,522 | |
Net increase (decrease) in net assets resulting from operations | $ 178,641,191 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (681,331) | $ 5,093,481 |
Net realized gain (loss) | 174,371,411 | (336,177,072) |
Change in net unrealized appreciation (depreciation) | 4,951,111 | 196,145,576 |
Net increase (decrease) in net assets resulting | 178,641,191 | (134,938,015) |
Distributions to shareholders from net investment income | - | (5,991,213) |
Share transactions - net increase (decrease) | (28,326,691) | 76,947,174 |
Total increase (decrease) in net assets | 150,314,500 | (63,982,054) |
|
|
|
Net Assets | ||
Beginning of period | 1,284,276,193 | 1,348,258,247 |
End of period (including accumulated net investment loss of $681,331 and undistributed net investment income of $0, respectively) | $ 1,434,590,693 | $ 1,284,276,193 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Series Small Cap Opportunities
| Six months ended | Years ended July 31, | ||
(Unaudited) | 2009 | 2008 | 2007 G | |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 6.94 | $ 7.97 | $ 9.65 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) D | - J | .03 | .02 | .01 |
Net realized and unrealized gain (loss) | .96 | (1.02) | (1.66) | (.36) |
Total from investment operations | .96 | (.99) | (1.64) | (.35) |
Distributions from net investment income | - | (.04) | (.02) | - |
Distributions from net realized gain | - | - | (.02) | - |
Total distributions | - | (.04) | (.04) | - |
Redemption fees added to paid in capital I | - | - | - D,J | - D,J |
Net asset value, end of period | $ 7.90 | $ 6.94 | $ 7.97 | $ 9.65 |
Total Return B,C | 13.83% | (12.34)% | (17.10)% | (3.50)% |
Ratios to Average Net Assets E,H |
|
|
|
|
Expenses before reductions | 1.02% A | .93% | .93% | 1.00% A |
Expenses net of fee waivers, if any | 1.02% A | .93% | .93% | 1.00% A |
Expenses net of all reductions | 1.01% A | .93% | .92% | .98% A |
Net investment income (loss) | (.10)% A | .49% | .20% | .20% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,362,275 | $ 1,284,079 | $ 1,348,258 | $ 984,470 |
Portfolio turnover rate F | 136% A | 167% | 179% | 176% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period March 22, 2007 (commencement of operations) to July 31, 2007.
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 The redemption fee was eliminated during the year ended July 31, 2009.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended | Year ended |
(Unaudited) | 2009 G | |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 6.94 | $ 6.24 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .01 | - I |
Net realized and unrealized gain (loss) | .96 | .70 |
Total from investment operations | .97 | .70 |
Net asset value, end of period | $ 7.91 | $ 6.94 |
Total Return B,C | 13.98% | 11.22% |
Ratios to Average Net Assets E,H |
|
|
Expenses before reductions | .78% A | .68% A |
Expenses net of fee waivers, if any | .78% A | .68% A |
Expenses net of all reductions | .76% A | .68% A |
Net investment income (loss) | .14% A | .11% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 72,315 | $ 197 |
Portfolio turnover rate F | 136% A | 167% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
1. Organization.
Fidelity Series Small Cap Opportunities Fund (the Fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. Shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as an investment manager and, for shares of Series Small Cap Opportunities, FMR investment professionals. 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 Series Small Cap Opportunities and Class F 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. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
Semiannual Report
3. Significant Accounting Policies - continued
The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
are limited, assumptions about market activity and risk are used and are categorized as level 3 in the hierarchy.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as level 2 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), market discount, partnerships, capital loss carryforwards, and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 218,393,551 |
Gross unrealized depreciation | (64,647,181) |
Net unrealized appreciation (depreciation) | $ 153,746,370 |
|
|
Tax cost | $ 1,347,247,660 |
4. Investments in Derivative Instruments.
Objectives and Strategies for Investing in Derivative Instruments. The Fund uses derivative instruments ("derivatives"), including futures contracts, in order to meet its investment objectives. The Fund's strategy is to use derivatives as a risk management tool and as an additional way to gain exposure to certain types of assets. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
While utilizing derivatives in pursuit of its investment objectives, the Fund is exposed to certain financial risks relative to those derivatives. This risk is further explained below:
Equity Risk | Equity risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The following notes provide more detailed information about each derivative type held by the Fund:
Futures Contracts. The Fund uses futures contracts to manage its exposure to the stock market. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument. Risks of loss may exceed any futures variation margin reflected in the Fund's Statement of Assets and Liabilities and may include equity risk and potential lack of liquidity in the market. Futures have minimal counterparty risk to the Fund since the exchange's clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. The underlying face amount at value of any open futures contracts at period end is shown in the
Semiannual Report
4. Investments in Derivative Instruments - continued
Futures Contracts - continued
Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end.
The purchaser or seller of a futures contract is not required to pay for or deliver the instrument unless the contract is held until the delivery date. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Securities deposited to meet margin requirements are identified in the Fund's Schedule of Investments. Futures contracts are marked-to-market daily and subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and changes in value are recognized as unrealized gain (loss). Realized gain (loss) is recorded upon the expiration or closing of the futures contract. The net realized gain (loss) and change in unrealized gain (loss) on futures contracts during the period is included on the Statement of Operations. The total underlying face amount of all open futures contracts at period end is indicative of the volume of this derivative type.
Realized and Change in Unrealized Gain (Loss) on Derivative Instruments. A summary of the Fund's value of derivatives by primary risk exposure as of period end, if any, is included at the end of the Fund's Schedule of Investments. The table below reflects the Fund's realized gain (loss) and change in unrealized gain (loss) for derivatives during the period.
Risk Exposure / Derivative Type | Realized Gain (Loss) | Change in |
Equity Risk |
|
|
Futures Contracts | $ 2,053,953 | $ (1,072,153) |
|
|
|
Total Derivatives Realized and Change in Unrealized Gain (Loss) (a) (b) | $ 2,053,953 | $ (1,072,153) |
(a) Total derivatives realized gain (loss) included in the Statement of Operations is comprised of $2,053,953 for futures contracts.
(b) Total derivatives change in unrealized gain (loss) included in the Statement of Operations is comprised of $(1,072,153) for futures contracts.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $930,093,672 and $948,046,512, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class of the Fund, Series Small Cap Opportunities, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .73% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of each class, except for Class F. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each applicable class were as follows:
| Amount | % of |
Series Small Cap Opportunities | $ 1,712,796 | .24 |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $16,891 for the period.
Semiannual Report
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,734 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $90,989 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Series Small Cap Opportunities | $ - | $ 5,991,213 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Series Small Cap Opportunities |
|
|
|
|
Shares sold | 12,407,522 | 29,784,876 | $ 96,233,239 | $ 160,099,974 |
Reinvestment of distributions | - | 1,140,271 | - | 5,991,213 |
Shares redeemed | (25,073,874) | (15,013,563) | (196,915,840) | (89,319,366) |
Net increase (decrease) | (12,666,352) | 15,911,584 | $ (100,682,601) | $ 76,771,821 |
Class F |
|
|
|
|
Shares sold | 9,415,261 | 28,431 | $ 74,749,330 | $ 175,553 |
Shares redeemed | (303,252) | (33) | (2,393,420) | (200) |
Net increase (decrease) | 9,112,009 | 28,398 | $ 72,355,910 | $ 175,353 |
A Share transactions for Class F are for the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At period end, mutual funds managed by FMR or an affiliate were the owners of record of substantially all of the outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Research & Analysis Company
FIL Investments (Japan) Limited
FIL Investment Advisors
FIL Investment Advisors (U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
SMO-SANN-0310 1.839810.102
Fidelity®
Small Cap Growth
Fund
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the fund's most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,104.70 | $ 7.43 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,103.40 | $ 8.75 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,100.30 | $ 11.38 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,100.50 | $ 11.38 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Small Cap Growth | 1.13% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,105.60 | $ 6.00 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.51 | $ 5.75 |
Class F | .83% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,107.30 | $ 4.41 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.02 | $ 4.23 |
Institutional Class | 1.08% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,105.40 | $ 5.73 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.76 | $ 5.50 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Riverbed Technology, Inc. | 1.4 | 0.5 |
j2 Global Communications, Inc. | 1.2 | 1.5 |
Plantronics, Inc. | 1.2 | 1.0 |
EXCO Resources, Inc. | 1.2 | 1.8 |
Microsemi Corp. | 1.2 | 0.0 |
Avis Budget Group, Inc. | 1.1 | 0.0 |
Monster Worldwide, Inc. | 1.1 | 0.8 |
Wright Express Corp. | 1.1 | 0.8 |
Brookdale Senior Living, Inc. | 1.0 | 1.1 |
Comstock Resources, Inc. | 1.0 | 0.8 |
| 11.5 | |
Top Five Market Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Health Care | 23.3 | 20.7 |
Information Technology | 23.0 | 24.0 |
Industrials | 18.7 | 15.5 |
Consumer Discretionary | 14.9 | 15.9 |
Energy | 5.5 | 6.1 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks 93.5% |
| ![]() | Stocks 95.7% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 15.1% |
| ** Foreign investments | 11.2% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.5% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 14.9% | |||
Auto Components - 1.8% | |||
BorgWarner, Inc. | 360,000 | $ 12,632,400 | |
ElringKlinger AG | 194,187 | 4,316,300 | |
Modine Manufacturing Co. (a) | 609,000 | 5,791,590 | |
| 22,740,290 | ||
Distributors - 0.5% | |||
Delticom AG | 176,000 | 7,063,252 | |
Diversified Consumer Services - 1.5% | |||
Regis Corp. | 604,400 | 9,628,092 | |
Steiner Leisure Ltd. (a) | 248,000 | 9,880,320 | |
| 19,508,412 | ||
Hotels, Restaurants & Leisure - 3.0% | |||
Bally Technologies, Inc. (a) | 187,600 | 7,442,092 | |
BJ's Restaurants, Inc. (a)(c) | 320,000 | 6,764,800 | |
Life Time Fitness, Inc. (a)(c) | 358,000 | 8,574,100 | |
Town Sports International Holdings, Inc. (a) | 33,442 | 78,923 | |
WMS Industries, Inc. (a) | 194,750 | 7,221,330 | |
Wyndham Worldwide Corp. | 419,000 | 8,794,810 | |
| 38,876,055 | ||
Household Durables - 2.0% | |||
Dorel Industries, Inc. Class B (sub. vtg.) | 309,550 | 8,835,188 | |
Hooker Furniture Corp. | 517,476 | 6,577,120 | |
Tempur-Pedic International, Inc. (a) | 444,000 | 11,051,160 | |
| 26,463,468 | ||
Multiline Retail - 0.6% | |||
Dollarama, Inc. | 385,000 | 7,290,985 | |
Specialty Retail - 2.9% | |||
Casual Male Retail Group, Inc. (a) | 2,348,113 | 6,574,716 | |
Citi Trends, Inc. (a) | 345,000 | 10,739,850 | |
Jos. A. Bank Clothiers, Inc. (a)(c) | 145,000 | 6,076,950 | |
Sally Beauty Holdings, Inc. (a) | 836,000 | 6,972,240 | |
Signet Jewelers Ltd. (a) | 250,000 | 6,840,000 | |
| 37,203,756 | ||
Textiles, Apparel & Luxury Goods - 2.6% | |||
Fossil, Inc. (a) | 305,000 | 9,958,250 | |
G-III Apparel Group Ltd. (a) | 430,300 | 7,491,523 | |
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - continued | |||
Textiles, Apparel & Luxury Goods - continued | |||
Iconix Brand Group, Inc. (a) | 994,500 | $ 12,550,590 | |
Ted Baker PLC | 450,000 | 3,544,540 | |
| 33,544,903 | ||
TOTAL CONSUMER DISCRETIONARY | 192,691,121 | ||
CONSUMER STAPLES - 1.6% | |||
Food Products - 1.6% | |||
Calavo Growers, Inc. (c) | 534,046 | 8,950,611 | |
Smithfield Foods, Inc. (a)(c) | 750,000 | 11,295,000 | |
| 20,245,611 | ||
ENERGY - 5.5% | |||
Energy Equipment & Services - 1.2% | |||
Northern Offshore Ltd. (a) | 3,345,000 | 5,785,541 | |
Parker Drilling Co. (a) | 2,055,000 | 9,884,550 | |
| 15,670,091 | ||
Oil, Gas & Consumable Fuels - 4.3% | |||
Arena Resources, Inc. (a) | 210,000 | 8,051,400 | |
Cabot Oil & Gas Corp. | 175,600 | 6,720,212 | |
Comstock Resources, Inc. (a) | 336,198 | 13,108,360 | |
EXCO Resources, Inc. | 875,400 | 15,354,516 | |
Massey Energy Co. | 314,000 | 12,095,280 | |
| 55,329,768 | ||
TOTAL ENERGY | 70,999,859 | ||
FINANCIALS - 3.5% | |||
Capital Markets - 1.5% | |||
Fifth Street Finance Corp. | 565,000 | 6,186,750 | |
Janus Capital Group, Inc. | 497,800 | 6,078,138 | |
optionsXpress Holdings, Inc. | 455,000 | 6,529,250 | |
| 18,794,138 | ||
Commercial Banks - 1.0% | |||
CapitalSource, Inc. | 1,295,000 | 6,203,050 | |
Huntington Bancshares, Inc. | 1,371,100 | 6,567,569 | |
| 12,770,619 | ||
Real Estate Investment Trusts - 0.4% | |||
CBL & Associates Properties, Inc. | 538,000 | 5,380,000 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Thrifts & Mortgage Finance - 0.6% | |||
First Niagara Financial Group, Inc. | 575,000 | $ 7,894,750 | |
TOTAL FINANCIALS | 44,839,507 | ||
HEALTH CARE - 23.3% | |||
Biotechnology - 2.7% | |||
Dendreon Corp. (a)(c) | 328,200 | 9,091,140 | |
OREXIGEN Therapeutics, Inc. (a)(c) | 846,550 | 5,384,058 | |
PDL BioPharma, Inc. (c) | 1,200,000 | 7,680,000 | |
Theravance, Inc. (a)(c) | 444,000 | 4,870,680 | |
United Therapeutics Corp. (a) | 128,000 | 7,624,960 | |
| 34,650,838 | ||
Health Care Equipment & Supplies - 5.3% | |||
ev3, Inc. (a) | 755,000 | 11,007,900 | |
Integra LifeSciences Holdings Corp. (a) | 287,400 | 11,036,160 | |
Meridian Bioscience, Inc. (c) | 464,605 | 9,310,684 | |
Natus Medical, Inc. (a) | 613,000 | 8,318,410 | |
Orthofix International NV (a) | 200,000 | 6,026,000 | |
Sirona Dental Systems, Inc. (a) | 224,000 | 7,206,080 | |
STRATEC Biomedical Systems AG | 175,000 | 6,105,175 | |
Wright Medical Group, Inc. (a) | 522,000 | 9,333,360 | |
| 68,343,769 | ||
Health Care Providers & Services - 6.8% | |||
Brookdale Senior Living, Inc. (a) | 728,000 | 13,286,000 | |
Community Health Systems, Inc. (a) | 351,000 | 11,449,620 | |
Emergency Medical Services Corp. Class A (a) | 165,000 | 8,664,150 | |
Hanger Orthopedic Group, Inc. (a) | 606,900 | 9,868,194 | |
Health Management Associates, Inc. Class A (a) | 1,672,000 | 11,102,080 | |
Providence Service Corp. (a) | 393,800 | 5,056,392 | |
PSS World Medical, Inc. (a) | 564,499 | 11,583,519 | |
Psychiatric Solutions, Inc. (a) | 430,000 | 9,481,500 | |
Synergy Health PLC | 780,411 | 7,672,813 | |
| 88,164,268 | ||
Health Care Technology - 0.6% | |||
Computer Programs & Systems, Inc. | 230,000 | 8,654,900 | |
Life Sciences Tools & Services - 4.1% | |||
Bruker BioSciences Corp. (a) | 885,000 | 10,858,950 | |
ICON PLC sponsored ADR (a) | 520,000 | 12,916,800 | |
Illumina, Inc. (a) | 122,900 | 4,509,201 | |
PerkinElmer, Inc. | 435,000 | 8,760,900 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Life Sciences Tools & Services - continued | |||
QIAGEN NV (a) | 361,000 | $ 7,855,360 | |
Varian, Inc. (a)(c) | 165,000 | 8,507,400 | |
| 53,408,611 | ||
Pharmaceuticals - 3.8% | |||
Ardea Biosciences, Inc. (a)(c) | 472,000 | 6,910,080 | |
Biodel, Inc. (a) | 425,000 | 1,704,250 | |
Cadence Pharmaceuticals, Inc. (a)(c) | 659,000 | 6,563,640 | |
Hikma Pharmaceuticals PLC | 1,150,000 | 10,040,374 | |
Optimer Pharmaceuticals, Inc. (a)(c) | 513,000 | 6,320,160 | |
ViroPharma, Inc. (a) | 1,000,000 | 9,880,000 | |
XenoPort, Inc. (a) | 401,000 | 7,410,480 | |
| 48,828,984 | ||
TOTAL HEALTH CARE | 302,051,370 | ||
INDUSTRIALS - 18.7% | |||
Aerospace & Defense - 0.7% | |||
Teledyne Technologies, Inc. (a) | 237,000 | 8,830,620 | |
Airlines - 1.2% | |||
AirTran Holdings, Inc. (a)(c) | 1,930,000 | 9,302,600 | |
Hawaiian Holdings, Inc. (a) | 961,800 | 5,713,092 | |
| 15,015,692 | ||
Building Products - 0.7% | |||
Armstrong World Industries, Inc. (a) | 257,000 | 9,362,510 | |
Commercial Services & Supplies - 1.3% | |||
InnerWorkings, Inc. (a)(c) | 87,497 | 501,358 | |
The Geo Group, Inc. (a) | 503,000 | 9,305,500 | |
Waste Connections, Inc. (a) | 235,000 | 7,559,950 | |
| 17,366,808 | ||
Construction & Engineering - 1.5% | |||
Chicago Bridge & Iron Co. NV (NY Shares) (a) | 511,000 | 10,368,190 | |
Orion Marine Group, Inc. (a) | 490,000 | 9,275,700 | |
| 19,643,890 | ||
Electrical Equipment - 2.8% | |||
Acuity Brands, Inc. (c) | 340,100 | 12,168,778 | |
Regal-Beloit Corp. | 217,000 | 10,285,800 | |
Roth & Rau AG (a)(c) | 150,000 | 6,041,501 | |
SunPower Corp. Class B (a) | 407,400 | 7,565,418 | |
| 36,061,497 | ||
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Machinery - 3.3% | |||
Altra Holdings, Inc. (a) | 770,000 | $ 8,485,400 | |
Blount International, Inc. (a) | 1,100,000 | 12,254,000 | |
Commercial Vehicle Group, Inc. (a)(d) | 1,264,964 | 6,059,178 | |
Duoyuan Global Water, Inc. ADR | 232,600 | 6,629,100 | |
OSG Corp. (c) | 825,000 | 9,047,856 | |
| 42,475,534 | ||
Professional Services - 1.9% | |||
Kforce, Inc. (a) | 780,000 | 10,428,600 | |
Monster Worldwide, Inc. (a)(c) | 905,880 | 14,122,669 | |
| 24,551,269 | ||
Road & Rail - 2.2% | |||
Avis Budget Group, Inc. (a) | 1,333,000 | 14,423,060 | |
Contrans Group, Inc. Class A | 981,600 | 6,664,562 | |
Knight Transportation, Inc. | 387,300 | 7,010,130 | |
| 28,097,752 | ||
Trading Companies & Distributors - 2.3% | |||
Beacon Roofing Supply, Inc. (a) | 744,000 | 12,499,200 | |
Interline Brands, Inc. (a) | 550,000 | 9,240,000 | |
Rush Enterprises, Inc. Class A (a) | 773,254 | 8,784,165 | |
| 30,523,365 | ||
Transportation Infrastructure - 0.8% | |||
Aegean Marine Petroleum Network, Inc. | 317,200 | 9,868,092 | |
TOTAL INDUSTRIALS | 241,797,029 | ||
INFORMATION TECHNOLOGY - 23.0% | |||
Communications Equipment - 5.5% | |||
Adtran, Inc. | 510,000 | 10,812,000 | |
CommScope, Inc. (a) | 275,200 | 7,488,192 | |
Plantronics, Inc. | 595,000 | 15,719,900 | |
Polycom, Inc. (a) | 360,000 | 8,074,800 | |
Riverbed Technology, Inc. (a) | 785,000 | 17,599,701 | |
ViaSat, Inc. (a) | 410,700 | 11,224,431 | |
| 70,919,024 | ||
Computers & Peripherals - 2.4% | |||
Super Micro Computer, Inc. (a) | 1,050,000 | 12,988,500 | |
Synaptics, Inc. (a)(c) | 303,000 | 7,668,930 | |
Wincor Nixdorf AG (c) | 157,400 | 10,618,282 | |
| 31,275,712 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Components - 1.1% | |||
Insight Enterprises, Inc. (a) | 535,000 | $ 6,157,850 | |
SYNNEX Corp. (a) | 290,000 | 7,676,300 | |
| 13,834,150 | ||
Internet Software & Services - 2.8% | |||
Art Technology Group, Inc. (a) | 1,620,652 | 7,260,521 | |
j2 Global Communications, Inc. (a) | 777,500 | 15,969,850 | |
Perficient, Inc. (a) | 432,154 | 4,196,215 | |
TelecityGroup PLC (a) | 1,466,600 | 9,152,191 | |
| 36,578,777 | ||
IT Services - 3.5% | |||
CACI International, Inc. Class A (a) | 179,400 | 8,605,818 | |
Datacash Group PLC | 2,486,200 | 7,925,384 | |
Online Resources Corp. (a)(d) | 1,522,060 | 7,351,550 | |
WNS Holdings Ltd. sponsored ADR (a) | 462,300 | 7,105,551 | |
Wright Express Corp. (a) | 472,000 | 13,857,920 | |
| 44,846,223 | ||
Semiconductors & Semiconductor Equipment - 3.4% | |||
Hittite Microwave Corp. (a) | 243,821 | 9,065,265 | |
Microsemi Corp. (a) | 997,000 | 14,895,180 | |
Teradyne, Inc. (a)(c) | 1,125,000 | 10,507,500 | |
Verigy Ltd. (a) | 865,000 | 9,376,600 | |
| 43,844,545 | ||
Software - 4.3% | |||
Blackbaud, Inc. | 361,059 | 8,051,616 | |
Informatica Corp. (a) | 381,000 | 9,025,890 | |
PROS Holdings, Inc. (a) | 496,135 | 3,944,273 | |
Radiant Systems, Inc. (a) | 820,000 | 9,471,000 | |
Solera Holdings, Inc. | 232,000 | 7,681,520 | |
Taleo Corp. Class A (a) | 431,039 | 8,754,402 | |
TeleCommunication Systems, Inc. Class A (a) | 1,070,000 | 9,373,200 | |
| 56,301,901 | ||
TOTAL INFORMATION TECHNOLOGY | 297,600,332 | ||
MATERIALS - 2.0% | |||
Chemicals - 0.8% | |||
Solutia, Inc. (a) | 717,000 | 9,858,750 | |
Containers & Packaging - 0.5% | |||
Myers Industries, Inc. | 677,500 | 6,192,350 | |
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Metals & Mining - 0.7% | |||
Commercial Metals Co. | 680,000 | $ 9,343,200 | |
TOTAL MATERIALS | 25,394,300 | ||
TELECOMMUNICATION SERVICES - 0.6% | |||
Diversified Telecommunication Services - 0.6% | |||
Premiere Global Services, Inc. (a) | 1,037,000 | 8,378,960 | |
UTILITIES - 0.4% | |||
Independent Power Producers & Energy Traders - 0.4% | |||
Terna Energy SA | 654,345 | 5,281,043 | |
TOTAL COMMON STOCKS (Cost $1,110,817,815) | 1,209,279,132 | ||
Money Market Funds - 12.1% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.17% (e) | 84,582,828 | 84,582,828 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(e) | 72,195,445 | 72,195,445 | |
TOTAL MONEY MARKET FUNDS (Cost $156,778,273) | 156,778,273 | ||
TOTAL INVESTMENT PORTFOLIO - 105.6% (Cost $1,267,596,088) | 1,366,057,405 | ||
NET OTHER ASSETS - (5.6)% | (72,310,540) | ||
NET ASSETS - 100% | $ 1,293,746,865 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated company |
(e) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
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 | $ 73,996 |
Fidelity Securities Lending Cash Central Fund | 109,613 |
Total | $ 183,609 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
Commercial Vehicle Group, Inc. | $ - | $ 6,978,148 | $ - | $ - | $ 6,059,178 |
Online Resources Corp. | 7,502,350 | 2,970,420 | 537,693 | - | 7,351,550 |
Town Sports International Holdings, Inc. | 4,060,850 | 759,596 | 3,156,729 | - | - |
Total | $ 11,563,200 | $ 10,708,164 | $ 3,694,422 | $ - | $ 13,410,728 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 192,691,121 | $ 177,767,029 | $ 14,924,092 | $ - |
Consumer Staples | 20,245,611 | 20,245,611 | - | - |
Energy | 70,999,859 | 65,214,318 | 5,785,541 | - |
Financials | 44,839,507 | 44,839,507 | - | - |
Health Care | 302,051,370 | 278,233,008 | 23,818,362 | - |
Industrials | 241,797,029 | 235,755,528 | 6,041,501 | - |
Information Technology | 297,600,332 | 269,904,475 | 27,695,857 | - |
Materials | 25,394,300 | 25,394,300 | - | - |
Telecommunication Services | 8,378,960 | 8,378,960 | - | - |
Utilities | 5,281,043 | - | 5,281,043 | - |
Money Market Funds | 156,778,273 | 156,778,273 | - | - |
Total Investments in Securities: | $ 1,366,057,405 | $ 1,282,511,009 | $ 83,546,396 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 84.9% |
United Kingdom | 3.0% |
Germany | 2.6% |
Canada | 1.8% |
Netherlands | 1.4% |
Ireland | 1.0% |
Others (individually less than 1%) | 5.3% |
| 100.0% |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $225,666,789 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $200,880,622 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $68,084,615) - See accompanying schedule: Unaffiliated issuers (cost $1,094,844,850) | $ 1,195,868,404 |
|
Fidelity Central Funds (cost $156,778,273) | 156,778,273 |
|
Other affiliated issuers (cost $15,972,965) | 13,410,728 |
|
Total Investments (cost $1,267,596,088) |
| $ 1,366,057,405 |
Receivable for investments sold | 18,354,204 | |
Receivable for fund shares sold | 2,081,611 | |
Dividends receivable | 211,183 | |
Distributions receivable from Fidelity Central Funds | 65,456 | |
Prepaid expenses | 4,772 | |
Receivable from investment adviser for expense reductions | 1,342 | |
Other receivables | 62,782 | |
Total assets | 1,386,838,755 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 18,968,668 | |
Payable for fund shares redeemed | 628,582 | |
Accrued management fee | 873,654 | |
Distribution fees payable | 38,761 | |
Other affiliated payables | 355,664 | |
Other payables and accrued expenses | 31,116 | |
Collateral on securities loaned, at value | 72,195,445 | |
Total liabilities | 93,091,890 | |
|
|
|
Net Assets | $ 1,293,746,865 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,503,833,560 | |
Accumulated net investment loss | (2,416,380) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (306,122,443) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 98,452,128 | |
Net Assets | $ 1,293,746,865 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 11.92 | |
|
|
|
Maximum offering price per share (100/94.25 of $11.92) | $ 12.65 | |
Class T: | $ 11.85 | |
|
|
|
Maximum offering price per share (100/96.50 of $11.85) | $ 12.28 | |
Class B: | $ 11.63 | |
|
|
|
Class C: | $ 11.61 | |
|
|
|
|
|
|
Small Cap Growth: | $ 12.04 | |
|
|
|
Class F: | $ 12.07 | |
|
|
|
Institutional Class: | $ 12.06 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 3,038,581 |
Special dividends |
| 1,670,000 |
Interest |
| 66 |
Income from Fidelity Central Funds |
| 183,609 |
Total income |
| 4,892,256 |
|
|
|
Expenses | ||
Management fee | $ 4,521,965 | |
Performance adjustment | 391,638 | |
Transfer agent fees | 1,920,466 | |
Distribution fees | 218,228 | |
Accounting and security lending fees | 237,439 | |
Custodian fees and expenses | 25,292 | |
Independent trustees' compensation | 3,736 | |
Registration fees | 72,280 | |
Audit | 29,339 | |
Legal | 4,307 | |
Miscellaneous | 10,541 | |
Total expenses before reductions | 7,435,231 | |
Expense reductions | (126,595) | 7,308,636 |
Net investment income (loss) | (2,416,380) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 138,282,411 | |
Other affiliated issuers | (2,158,131) |
|
Foreign currency transactions | (25,884) | |
Capital gains distributions from Fidelity Central Funds | 2,501 | |
Total net realized gain (loss) |
| 136,100,897 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (10,689,555) | |
Assets and liabilities in foreign currencies | (9,741) | |
Total change in net unrealized appreciation (depreciation) |
| (10,699,296) |
Net gain (loss) | 125,401,601 | |
Net increase (decrease) in net assets resulting from operations | $ 122,985,221 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (2,416,380) | $ (4,212,561) |
Net realized gain (loss) | 136,100,897 | (335,295,985) |
Change in net unrealized appreciation (depreciation) | (10,699,296) | 109,380,680 |
Net increase (decrease) in net assets resulting | 122,985,221 | (230,127,866) |
Share transactions - net increase (decrease) | (14,066,912) | 89,233,558 |
Redemption fees | 99,319 | 255,734 |
Total increase (decrease) in net assets | 109,017,628 | (140,638,574) |
|
|
|
Net Assets | ||
Beginning of period | 1,184,729,237 | 1,325,367,811 |
End of period (including accumulated net investment loss of $2,416,380 and $0, respectively) | $ 1,293,746,865 | $ 1,184,729,237 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 K | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.79 | $ 13.20 | $ 16.06 | $ 12.88 | $ 12.95 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.04) H | (.06) | (.11) | (.12) I | (.10) J | (.07) |
Net realized and unrealized gain (loss) | 1.17 | (2.35) | (1.73) | 3.39 | .18 | 3.01 |
Total from investment operations | 1.13 | (2.41) | (1.84) | 3.27 | .08 | 2.94 |
Distributions from net realized gain | - | - | (1.02) | (.09) | (.16) | - |
Redemption fees added to paid in capital E | - M | - M | - M | - M | .01 | .01 |
Net asset value, end of period | $ 11.92 | $ 10.79 | $ 13.20 | $ 16.06 | $ 12.88 | $ 12.95 |
Total Return B, C, D | 10.47% | (18.26)% | (12.26)% | 25.52% | .70% | 29.50% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 1.42% A | 1.33% | 1.40% | 1.44% | 1.53% | 1.55% A |
Expenses net of fee waivers, if any | 1.40% A | 1.33% | 1.40% | 1.40% | 1.40% | 1.45% A |
Expenses net of all reductions | 1.38% A | 1.33% | 1.39% | 1.39% | 1.35% | 1.36% A |
Net investment income (loss) | (.61)% A, H | (.64)% | (.74)% | (.80)% I | (.79)% J | (.78)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 43,630 | $ 40,211 | $ 42,187 | $ 33,588 | $ 18,104 | $ 4,719 |
Portfolio turnover rate G | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.88)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.84)%. J Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.85)%. K For the period November 3, 2004 (commencement of operations) to July 31, 2005. L Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. M Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 K | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.74 | $ 13.17 | $ 16.01 | $ 12.86 | $ 12.93 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.05) H | (.09) | (.15) | (.16) I | (.14) J | (.09) |
Net realized and unrealized gain (loss) | 1.16 | (2.34) | (1.73) | 3.38 | .19 | 3.01 |
Total from investment operations | 1.11 | (2.43) | (1.88) | 3.22 | .05 | 2.92 |
Distributions from net realized gain | - | - | (.96) | (.07) | (.13) | - |
Redemption fees added to paid in capital E | - M | - M | - M | - M | .01 | .01 |
Net asset value, end of period | $ 11.85 | $ 10.74 | $ 13.17 | $ 16.01 | $ 12.86 | $ 12.93 |
Total Return B, C, D | 10.34% | (18.45)% | (12.50)% | 25.18% | .48% | 29.30% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 1.68% A | 1.60% | 1.65% | 1.67% | 1.73% | 1.79% A |
Expenses net of fee waivers, if any | 1.65% A | 1.60% | 1.65% | 1.65% | 1.65% | 1.70% A |
Expenses net of all reductions | 1.63% A | 1.59% | 1.65% | 1.65% | 1.60% | 1.61% A |
Net investment income (loss) | (.86)% A, H | (.91)% | (.99)% | (1.05)% I | (1.04)% J | (1.03)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 22,452 | $ 21,533 | $ 21,754 | $ 26,419 | $ 19,205 | $ 5,240 |
Portfolio turnover rate G | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.13)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.09)%. J Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.10)%. K For the period November 3, 2004 (commencement of operations) to July 31, 2005. L Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. M Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 K | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.57 | $ 13.03 | $ 15.85 | $ 12.78 | $ 12.87 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.08) H | (.13) | (.22) | (.23) I | (.20) J | (.13) |
Net realized and unrealized gain (loss) | 1.14 | (2.33) | (1.71) | 3.36 | .19 | 2.99 |
Total from investment operations | 1.06 | (2.46) | (1.93) | 3.13 | (.01) | 2.86 |
Distributions from net realized gain | - | - | (.89) | (.06) | (.09) | - |
Redemption fees added to paid in capital E | - M | - M | - M | - M | .01 | .01 |
Net asset value, end of period | $ 11.63 | $ 10.57 | $ 13.03 | $ 15.85 | $ 12.78 | $ 12.87 |
Total Return B, C, D | 10.03% | (18.88)% | (12.92)% | 24.57% | (.03)% | 28.70% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 2.18% A | 2.08% | 2.15% | 2.20% | 2.28% | 2.33% A |
Expenses net of fee waivers, if any | 2.15% A | 2.08% | 2.15% | 2.15% | 2.15% | 2.20% A |
Expenses net of all reductions | 2.13% A | 2.08% | 2.15% | 2.15% | 2.10% | 2.11% A |
Net investment income (loss) | (1.36)% A, H | (1.39)% | (1.49)% | (1.55)% I | (1.54)% J | (1.53)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 4,792 | $ 4,171 | $ 5,517 | $ 6,242 | $ 5,191 | $ 2,055 |
Portfolio turnover rate G | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.63)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.59)%. J Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.60)%. K For the period Novem-ber 3, 2004 (commencement of operations) to July 31, 2005. L Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. M Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 K | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.55 | $ 13.00 | $ 15.84 | $ 12.77 | $ 12.88 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.08) H | (.13) | (.22) | (.23) I | (.20) J | (.13) |
Net realized and unrealized gain (loss) | 1.14 | (2.32) | (1.71) | 3.36 | .18 | 3.00 |
Total from investment operations | 1.06 | (2.45) | (1.93) | 3.13 | (.02) | 2.87 |
Distributions from net realized gain | - | - | (.91) | (.06) | (.10) | - |
Redemption fees added to paid in capital E | - M | - M | - M | - M | .01 | .01 |
Net asset value, end of period | $ 11.61 | $ 10.55 | $ 13.00 | $ 15.84 | $ 12.77 | $ 12.88 |
Total Return B, C, D | 10.05% | (18.85)% | (12.94)% | 24.59% | (.08)% | 28.80% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 2.18% A | 2.08% | 2.15% | 2.20% | 2.25% | 2.24% A |
Expenses net of fee waivers, if any | 2.15% A | 2.08% | 2.15% | 2.15% | 2.15% | 2.17% A |
Expenses net of all reductions | 2.13% A | 2.07% | 2.14% | 2.14% | 2.10% | 2.09% A |
Net investment income (loss) | (1.36)% A, H | (1.39)% | (1.49)% | (1.55)% I | (1.54)% J | (1.50)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 16,380 | $ 14,267 | $ 15,946 | $ 22,348 | $ 14,682 | $ 8,372 |
Portfolio turnover rate G | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.63)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.59)%. J Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.60)%. K For the period Novem-ber 3, 2004 (commencement of operations) to July 31, 2005. L Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. M Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Growth
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 J | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.89 | $ 13.29 | $ 16.15 | $ 12.93 | $ 12.98 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | (.02) G | (.04) | (.07) | (.08) H | (.07) I | (.04) |
Net realized and unrealized gain (loss) | 1.17 | (2.36) | (1.74) | 3.40 | .19 | 3.01 |
Total from investment operations | 1.15 | (2.40) | (1.81) | 3.32 | .12 | 2.97 |
Distributions from net realized gain | - | - | (1.05) | (.10) | (.18) | - |
Redemption fees added to paid in capital D | - L | - L | - L | - L | .01 | .01 |
Net asset value, end of period | $ 12.04 | $ 10.89 | $ 13.29 | $ 16.15 | $ 12.93 | $ 12.98 |
Total Return B, C | 10.56% | (18.06)% | (11.98)% | 25.84% | 1.01% | 29.80% |
Ratios to Average Net Assets E, K |
|
|
|
|
| |
Expenses before reductions | 1.13% A | 1.08% | 1.11% | 1.10% | 1.13% | 1.16% A |
Expenses net of fee waivers, if any | 1.13% A | 1.08% | 1.11% | 1.10% | 1.13% | 1.16% A |
Expenses net of all reductions | 1.12% A | 1.08% | 1.10% | 1.09% | 1.08% | 1.08% A |
Net investment income (loss) | (.35)% A, G | (.39)% | (.45)% | (.50)% H | (.52)% I | (.49)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 1,144,530 | $ 1,085,184 | $ 1,217,520 | $ 1,149,809 | $ 402,353 | $ 205,652 |
Portfolio turnover rate F | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.61)%. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.54)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.58)%. J For the period November 3, 2004 (commencement of operations) to July 31, 2005. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended | Years ended |
(Unaudited) | 2009 I | |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 10.90 | $ 10.03 |
Income from Investment Operations |
|
|
Net investment income (loss) D | - G, K | (.01) |
Net realized and unrealized gain (loss) | 1.17 | .88 H |
Total from investment operations | 1.17 | .87 |
Redemption fee added to paid in capital D, K | - | - |
Net asset value, end of period | $ 12.07 | $ 10.90 |
Total Return B, C | 10.73% | 8.67% |
Ratios to Average Net Assets E, J |
|
|
Expenses before reductions | .83% A | .74% A |
Expenses net of fee waivers, if any | .83% A | .74% A |
Expenses net of all reductions | .81% A | .73% A |
Net investment income (loss) | (.05)% A, G | (.54)% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 42,754 | $ 159 |
Portfolio turnover rate F | 108% A | 150% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.31)%. H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 J | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.91 | $ 13.30 | $ 16.15 | $ 12.92 | $ 12.97 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | (.02) G | (.03) | (.06) | (.07) H | (.07) I | (.04) |
Net realized and unrealized gain (loss) | 1.17 | (2.36) | (1.74) | 3.41 | .19 | 3.00 |
Total from investment operations | 1.15 | (2.39) | (1.80) | 3.34 | .12 | 2.96 |
Distributions from net realized gain | - | - | (1.05) | (.11) | (.18) | - |
Redemption fees added to paid in capital D | - L | - L | - L | - L | .01 | .01 |
Net asset value, end of period | $ 12.06 | $ 10.91 | $ 13.30 | $ 16.15 | $ 12.92 | $ 12.97 |
Total Return B, C | 10.54% | (17.97)% | (11.93)% | 25.99% | .97% | 29.70% |
Ratios to Average Net Assets E, K |
|
|
|
|
| |
Expenses before reductions | 1.08% A | 1.05% | 1.04% | 1.05% | 1.10% | 1.20% A |
Expenses net of fee waivers, if any | 1.08% A | 1.05% | 1.04% | 1.05% | 1.10% | 1.18% A |
Expenses net of all reductions | 1.06% A | 1.04% | 1.03% | 1.05% | 1.05% | 1.10% A |
Net investment income (loss) | (.29)% A, G | (.36)% | (.38)% | (.46)% H | (.49)% I | (.51)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 19,210 | $ 19,204 | $ 22,444 | $ 18,671 | $ 14,233 | $ 1,906 |
Portfolio turnover rate F | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.56)%. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.50)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.55)%. J For the period November 3, 2004 (commencement of operations) to July 31, 2005. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
1. Organization.
Fidelity Small Cap Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, Small Cap Growth, Class F and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 157,248,032 |
|
Gross unrealized depreciation | (65,671,189) |
|
Net unrealized appreciation (depreciation) | $ 91,576,843 |
|
|
|
|
Tax cost | $ 1,274,480,562 |
|
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All
Semiannual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees - continued
redemption fees, including any estimated redemption fees paid by FMR, 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 $643,292,838 and $692,876,646, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class of the Fund, Small Cap Growth, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .77% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution | Service | Paid to | Retained |
Class A | -% | .25% | $ 55,419 | $ 1,955 |
Class T | .25% | .25% | 57,870 | - |
Class B | .75% | .25% | 23,116 | 17,337 |
Class C | .75% | .25% | 81,823 | 16,035 |
|
|
| $ 218,228 | $ 35,327 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 14,451 |
Class T | 3,032 |
Class B* | 2,716 |
Class C* | 661 |
| $ 20,860 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of each class, except for Class F. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Class A | $ 74,570 | .34 |
Class T | 39,990 | .35 |
Class B | 7,941 | .34 |
Class C | 28,157 | .34 |
Small Cap Growth | 1,745,899 | .30 |
Institutional Class | 23,909 | .25 |
| $ 1,920,466 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $10,819 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,453 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $109,613.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | 1.40% | $ 4,040 |
Class T | 1.65% | 3,237 |
Class B | 2.15% | 654 |
Class C | 2.15% | 2,325 |
|
| $ 10,256 |
* Expense limitation in effect at period end.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $116,328 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $11.
Semiannual Report
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 876,829 | 1,768,538 | $ 10,246,640 | $ 16,919,128 |
Shares redeemed | (941,525) | (1,239,291) | (10,924,770) | (11,138,983) |
Net increase (decrease) | (64,696) | 529,247 | $ (678,130) | $ 5,780,145 |
Class T |
|
|
|
|
Shares sold | 255,929 | 1,485,602 | $ 2,983,172 | $ 12,842,623 |
Shares redeemed | (365,247) | (1,132,759) | (4,294,949) | (9,596,209) |
Net increase (decrease) | (109,318) | 352,843 | $ (1,311,777) | $ 3,246,414 |
Class B |
|
|
|
|
Shares sold | 61,930 | 116,072 | $ 708,187 | $ 1,042,949 |
Shares redeemed | (44,439) | (145,097) | (504,946) | (1,355,668) |
Net increase (decrease) | 17,491 | (29,025) | $ 203,241 | $ (312,719) |
Class C |
|
|
|
|
Shares sold | 248,890 | 604,934 | $ 2,842,168 | $ 5,793,290 |
Shares redeemed | (189,884) | (479,386) | (2,227,980) | (4,290,700) |
Net increase (decrease) | 59,006 | 125,548 | $ 614,188 | $ 1,502,590 |
Small Cap Growth |
|
|
|
|
Shares sold | 11,154,403 | 30,718,046 | $ 132,014,131 | $ 287,281,815 |
Shares redeemed | (15,746,553) | (22,726,319) | (185,597,494) | (209,407,815) |
Net increase (decrease) | (4,592,150) | 7,991,727 | $ (53,583,363) | $ 77,874,000 |
Class F |
|
|
|
|
Shares sold | 3,612,384 | 14,590 | $ 43,584,992 | $ 145,457 |
Shares redeemed | (84,190) | (12) | (1,022,050) | (113) |
Net increase (decrease) | 3,528,194 | 14,578 | $ 42,562,942 | $ 145,344 |
Institutional Class |
|
|
|
|
Shares sold | 475,265 | 802,152 | $ 5,668,140 | $ 7,245,594 |
Shares redeemed | (643,442) | (728,847) | (7,542,153) | (6,247,810) |
Net increase (decrease) | (168,177) | 73,305 | $ (1,874,013) | $ 997,784 |
A Share transactions for Class F are for the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Other - continued
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, Fidelity Freedom 2020 Fund and Fidelity Freedom 2030 Fund were the owners of record of approximately 12% and 10% of the total outstanding shares of the Fund. The Fidelity Freedom Funds were the owners of record, in the aggregate, of approximately 51% of the total outstanding shares of the Fund.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research
(U.K.) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisors
FIL Investment Advisors (U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operating Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) 1-800-544-5555
Automated line for quickest service
SCP-USAN-0310 1.803699.105
Fidelity®
Small Cap Growth
Fund
Class F
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the fund's most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,104.70 | $ 7.43 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,103.40 | $ 8.75 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,100.30 | $ 11.38 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,100.50 | $ 11.38 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Small Cap Growth | 1.13% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,105.60 | $ 6.00 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.51 | $ 5.75 |
Class F | .83% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,107.30 | $ 4.41 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.02 | $ 4.23 |
Institutional Class | 1.08% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,105.40 | $ 5.73 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.76 | $ 5.50 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Riverbed Technology, Inc. | 1.4 | 0.5 |
j2 Global Communications, Inc. | 1.2 | 1.5 |
Plantronics, Inc. | 1.2 | 1.0 |
EXCO Resources, Inc. | 1.2 | 1.8 |
Microsemi Corp. | 1.2 | 0.0 |
Avis Budget Group, Inc. | 1.1 | 0.0 |
Monster Worldwide, Inc. | 1.1 | 0.8 |
Wright Express Corp. | 1.1 | 0.8 |
Brookdale Senior Living, Inc. | 1.0 | 1.1 |
Comstock Resources, Inc. | 1.0 | 0.8 |
| 11.5 | |
Top Five Market Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Health Care | 23.3 | 20.7 |
Information Technology | 23.0 | 24.0 |
Industrials | 18.7 | 15.5 |
Consumer Discretionary | 14.9 | 15.9 |
Energy | 5.5 | 6.1 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks 93.5% |
| ![]() | Stocks 95.7% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 15.1% |
| ** Foreign investments | 11.2% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.5% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 14.9% | |||
Auto Components - 1.8% | |||
BorgWarner, Inc. | 360,000 | $ 12,632,400 | |
ElringKlinger AG | 194,187 | 4,316,300 | |
Modine Manufacturing Co. (a) | 609,000 | 5,791,590 | |
| 22,740,290 | ||
Distributors - 0.5% | |||
Delticom AG | 176,000 | 7,063,252 | |
Diversified Consumer Services - 1.5% | |||
Regis Corp. | 604,400 | 9,628,092 | |
Steiner Leisure Ltd. (a) | 248,000 | 9,880,320 | |
| 19,508,412 | ||
Hotels, Restaurants & Leisure - 3.0% | |||
Bally Technologies, Inc. (a) | 187,600 | 7,442,092 | |
BJ's Restaurants, Inc. (a)(c) | 320,000 | 6,764,800 | |
Life Time Fitness, Inc. (a)(c) | 358,000 | 8,574,100 | |
Town Sports International Holdings, Inc. (a) | 33,442 | 78,923 | |
WMS Industries, Inc. (a) | 194,750 | 7,221,330 | |
Wyndham Worldwide Corp. | 419,000 | 8,794,810 | |
| 38,876,055 | ||
Household Durables - 2.0% | |||
Dorel Industries, Inc. Class B (sub. vtg.) | 309,550 | 8,835,188 | |
Hooker Furniture Corp. | 517,476 | 6,577,120 | |
Tempur-Pedic International, Inc. (a) | 444,000 | 11,051,160 | |
| 26,463,468 | ||
Multiline Retail - 0.6% | |||
Dollarama, Inc. | 385,000 | 7,290,985 | |
Specialty Retail - 2.9% | |||
Casual Male Retail Group, Inc. (a) | 2,348,113 | 6,574,716 | |
Citi Trends, Inc. (a) | 345,000 | 10,739,850 | |
Jos. A. Bank Clothiers, Inc. (a)(c) | 145,000 | 6,076,950 | |
Sally Beauty Holdings, Inc. (a) | 836,000 | 6,972,240 | |
Signet Jewelers Ltd. (a) | 250,000 | 6,840,000 | |
| 37,203,756 | ||
Textiles, Apparel & Luxury Goods - 2.6% | |||
Fossil, Inc. (a) | 305,000 | 9,958,250 | |
G-III Apparel Group Ltd. (a) | 430,300 | 7,491,523 | |
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - continued | |||
Textiles, Apparel & Luxury Goods - continued | |||
Iconix Brand Group, Inc. (a) | 994,500 | $ 12,550,590 | |
Ted Baker PLC | 450,000 | 3,544,540 | |
| 33,544,903 | ||
TOTAL CONSUMER DISCRETIONARY | 192,691,121 | ||
CONSUMER STAPLES - 1.6% | |||
Food Products - 1.6% | |||
Calavo Growers, Inc. (c) | 534,046 | 8,950,611 | |
Smithfield Foods, Inc. (a)(c) | 750,000 | 11,295,000 | |
| 20,245,611 | ||
ENERGY - 5.5% | |||
Energy Equipment & Services - 1.2% | |||
Northern Offshore Ltd. (a) | 3,345,000 | 5,785,541 | |
Parker Drilling Co. (a) | 2,055,000 | 9,884,550 | |
| 15,670,091 | ||
Oil, Gas & Consumable Fuels - 4.3% | |||
Arena Resources, Inc. (a) | 210,000 | 8,051,400 | |
Cabot Oil & Gas Corp. | 175,600 | 6,720,212 | |
Comstock Resources, Inc. (a) | 336,198 | 13,108,360 | |
EXCO Resources, Inc. | 875,400 | 15,354,516 | |
Massey Energy Co. | 314,000 | 12,095,280 | |
| 55,329,768 | ||
TOTAL ENERGY | 70,999,859 | ||
FINANCIALS - 3.5% | |||
Capital Markets - 1.5% | |||
Fifth Street Finance Corp. | 565,000 | 6,186,750 | |
Janus Capital Group, Inc. | 497,800 | 6,078,138 | |
optionsXpress Holdings, Inc. | 455,000 | 6,529,250 | |
| 18,794,138 | ||
Commercial Banks - 1.0% | |||
CapitalSource, Inc. | 1,295,000 | 6,203,050 | |
Huntington Bancshares, Inc. | 1,371,100 | 6,567,569 | |
| 12,770,619 | ||
Real Estate Investment Trusts - 0.4% | |||
CBL & Associates Properties, Inc. | 538,000 | 5,380,000 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Thrifts & Mortgage Finance - 0.6% | |||
First Niagara Financial Group, Inc. | 575,000 | $ 7,894,750 | |
TOTAL FINANCIALS | 44,839,507 | ||
HEALTH CARE - 23.3% | |||
Biotechnology - 2.7% | |||
Dendreon Corp. (a)(c) | 328,200 | 9,091,140 | |
OREXIGEN Therapeutics, Inc. (a)(c) | 846,550 | 5,384,058 | |
PDL BioPharma, Inc. (c) | 1,200,000 | 7,680,000 | |
Theravance, Inc. (a)(c) | 444,000 | 4,870,680 | |
United Therapeutics Corp. (a) | 128,000 | 7,624,960 | |
| 34,650,838 | ||
Health Care Equipment & Supplies - 5.3% | |||
ev3, Inc. (a) | 755,000 | 11,007,900 | |
Integra LifeSciences Holdings Corp. (a) | 287,400 | 11,036,160 | |
Meridian Bioscience, Inc. (c) | 464,605 | 9,310,684 | |
Natus Medical, Inc. (a) | 613,000 | 8,318,410 | |
Orthofix International NV (a) | 200,000 | 6,026,000 | |
Sirona Dental Systems, Inc. (a) | 224,000 | 7,206,080 | |
STRATEC Biomedical Systems AG | 175,000 | 6,105,175 | |
Wright Medical Group, Inc. (a) | 522,000 | 9,333,360 | |
| 68,343,769 | ||
Health Care Providers & Services - 6.8% | |||
Brookdale Senior Living, Inc. (a) | 728,000 | 13,286,000 | |
Community Health Systems, Inc. (a) | 351,000 | 11,449,620 | |
Emergency Medical Services Corp. Class A (a) | 165,000 | 8,664,150 | |
Hanger Orthopedic Group, Inc. (a) | 606,900 | 9,868,194 | |
Health Management Associates, Inc. Class A (a) | 1,672,000 | 11,102,080 | |
Providence Service Corp. (a) | 393,800 | 5,056,392 | |
PSS World Medical, Inc. (a) | 564,499 | 11,583,519 | |
Psychiatric Solutions, Inc. (a) | 430,000 | 9,481,500 | |
Synergy Health PLC | 780,411 | 7,672,813 | |
| 88,164,268 | ||
Health Care Technology - 0.6% | |||
Computer Programs & Systems, Inc. | 230,000 | 8,654,900 | |
Life Sciences Tools & Services - 4.1% | |||
Bruker BioSciences Corp. (a) | 885,000 | 10,858,950 | |
ICON PLC sponsored ADR (a) | 520,000 | 12,916,800 | |
Illumina, Inc. (a) | 122,900 | 4,509,201 | |
PerkinElmer, Inc. | 435,000 | 8,760,900 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Life Sciences Tools & Services - continued | |||
QIAGEN NV (a) | 361,000 | $ 7,855,360 | |
Varian, Inc. (a)(c) | 165,000 | 8,507,400 | |
| 53,408,611 | ||
Pharmaceuticals - 3.8% | |||
Ardea Biosciences, Inc. (a)(c) | 472,000 | 6,910,080 | |
Biodel, Inc. (a) | 425,000 | 1,704,250 | |
Cadence Pharmaceuticals, Inc. (a)(c) | 659,000 | 6,563,640 | |
Hikma Pharmaceuticals PLC | 1,150,000 | 10,040,374 | |
Optimer Pharmaceuticals, Inc. (a)(c) | 513,000 | 6,320,160 | |
ViroPharma, Inc. (a) | 1,000,000 | 9,880,000 | |
XenoPort, Inc. (a) | 401,000 | 7,410,480 | |
| 48,828,984 | ||
TOTAL HEALTH CARE | 302,051,370 | ||
INDUSTRIALS - 18.7% | |||
Aerospace & Defense - 0.7% | |||
Teledyne Technologies, Inc. (a) | 237,000 | 8,830,620 | |
Airlines - 1.2% | |||
AirTran Holdings, Inc. (a)(c) | 1,930,000 | 9,302,600 | |
Hawaiian Holdings, Inc. (a) | 961,800 | 5,713,092 | |
| 15,015,692 | ||
Building Products - 0.7% | |||
Armstrong World Industries, Inc. (a) | 257,000 | 9,362,510 | |
Commercial Services & Supplies - 1.3% | |||
InnerWorkings, Inc. (a)(c) | 87,497 | 501,358 | |
The Geo Group, Inc. (a) | 503,000 | 9,305,500 | |
Waste Connections, Inc. (a) | 235,000 | 7,559,950 | |
| 17,366,808 | ||
Construction & Engineering - 1.5% | |||
Chicago Bridge & Iron Co. NV (NY Shares) (a) | 511,000 | 10,368,190 | |
Orion Marine Group, Inc. (a) | 490,000 | 9,275,700 | |
| 19,643,890 | ||
Electrical Equipment - 2.8% | |||
Acuity Brands, Inc. (c) | 340,100 | 12,168,778 | |
Regal-Beloit Corp. | 217,000 | 10,285,800 | |
Roth & Rau AG (a)(c) | 150,000 | 6,041,501 | |
SunPower Corp. Class B (a) | 407,400 | 7,565,418 | |
| 36,061,497 | ||
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Machinery - 3.3% | |||
Altra Holdings, Inc. (a) | 770,000 | $ 8,485,400 | |
Blount International, Inc. (a) | 1,100,000 | 12,254,000 | |
Commercial Vehicle Group, Inc. (a)(d) | 1,264,964 | 6,059,178 | |
Duoyuan Global Water, Inc. ADR | 232,600 | 6,629,100 | |
OSG Corp. (c) | 825,000 | 9,047,856 | |
| 42,475,534 | ||
Professional Services - 1.9% | |||
Kforce, Inc. (a) | 780,000 | 10,428,600 | |
Monster Worldwide, Inc. (a)(c) | 905,880 | 14,122,669 | |
| 24,551,269 | ||
Road & Rail - 2.2% | |||
Avis Budget Group, Inc. (a) | 1,333,000 | 14,423,060 | |
Contrans Group, Inc. Class A | 981,600 | 6,664,562 | |
Knight Transportation, Inc. | 387,300 | 7,010,130 | |
| 28,097,752 | ||
Trading Companies & Distributors - 2.3% | |||
Beacon Roofing Supply, Inc. (a) | 744,000 | 12,499,200 | |
Interline Brands, Inc. (a) | 550,000 | 9,240,000 | |
Rush Enterprises, Inc. Class A (a) | 773,254 | 8,784,165 | |
| 30,523,365 | ||
Transportation Infrastructure - 0.8% | |||
Aegean Marine Petroleum Network, Inc. | 317,200 | 9,868,092 | |
TOTAL INDUSTRIALS | 241,797,029 | ||
INFORMATION TECHNOLOGY - 23.0% | |||
Communications Equipment - 5.5% | |||
Adtran, Inc. | 510,000 | 10,812,000 | |
CommScope, Inc. (a) | 275,200 | 7,488,192 | |
Plantronics, Inc. | 595,000 | 15,719,900 | |
Polycom, Inc. (a) | 360,000 | 8,074,800 | |
Riverbed Technology, Inc. (a) | 785,000 | 17,599,701 | |
ViaSat, Inc. (a) | 410,700 | 11,224,431 | |
| 70,919,024 | ||
Computers & Peripherals - 2.4% | |||
Super Micro Computer, Inc. (a) | 1,050,000 | 12,988,500 | |
Synaptics, Inc. (a)(c) | 303,000 | 7,668,930 | |
Wincor Nixdorf AG (c) | 157,400 | 10,618,282 | |
| 31,275,712 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Components - 1.1% | |||
Insight Enterprises, Inc. (a) | 535,000 | $ 6,157,850 | |
SYNNEX Corp. (a) | 290,000 | 7,676,300 | |
| 13,834,150 | ||
Internet Software & Services - 2.8% | |||
Art Technology Group, Inc. (a) | 1,620,652 | 7,260,521 | |
j2 Global Communications, Inc. (a) | 777,500 | 15,969,850 | |
Perficient, Inc. (a) | 432,154 | 4,196,215 | |
TelecityGroup PLC (a) | 1,466,600 | 9,152,191 | |
| 36,578,777 | ||
IT Services - 3.5% | |||
CACI International, Inc. Class A (a) | 179,400 | 8,605,818 | |
Datacash Group PLC | 2,486,200 | 7,925,384 | |
Online Resources Corp. (a)(d) | 1,522,060 | 7,351,550 | |
WNS Holdings Ltd. sponsored ADR (a) | 462,300 | 7,105,551 | |
Wright Express Corp. (a) | 472,000 | 13,857,920 | |
| 44,846,223 | ||
Semiconductors & Semiconductor Equipment - 3.4% | |||
Hittite Microwave Corp. (a) | 243,821 | 9,065,265 | |
Microsemi Corp. (a) | 997,000 | 14,895,180 | |
Teradyne, Inc. (a)(c) | 1,125,000 | 10,507,500 | |
Verigy Ltd. (a) | 865,000 | 9,376,600 | |
| 43,844,545 | ||
Software - 4.3% | |||
Blackbaud, Inc. | 361,059 | 8,051,616 | |
Informatica Corp. (a) | 381,000 | 9,025,890 | |
PROS Holdings, Inc. (a) | 496,135 | 3,944,273 | |
Radiant Systems, Inc. (a) | 820,000 | 9,471,000 | |
Solera Holdings, Inc. | 232,000 | 7,681,520 | |
Taleo Corp. Class A (a) | 431,039 | 8,754,402 | |
TeleCommunication Systems, Inc. Class A (a) | 1,070,000 | 9,373,200 | |
| 56,301,901 | ||
TOTAL INFORMATION TECHNOLOGY | 297,600,332 | ||
MATERIALS - 2.0% | |||
Chemicals - 0.8% | |||
Solutia, Inc. (a) | 717,000 | 9,858,750 | |
Containers & Packaging - 0.5% | |||
Myers Industries, Inc. | 677,500 | 6,192,350 | |
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Metals & Mining - 0.7% | |||
Commercial Metals Co. | 680,000 | $ 9,343,200 | |
TOTAL MATERIALS | 25,394,300 | ||
TELECOMMUNICATION SERVICES - 0.6% | |||
Diversified Telecommunication Services - 0.6% | |||
Premiere Global Services, Inc. (a) | 1,037,000 | 8,378,960 | |
UTILITIES - 0.4% | |||
Independent Power Producers & Energy Traders - 0.4% | |||
Terna Energy SA | 654,345 | 5,281,043 | |
TOTAL COMMON STOCKS (Cost $1,110,817,815) | 1,209,279,132 | ||
Money Market Funds - 12.1% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.17% (e) | 84,582,828 | 84,582,828 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(e) | 72,195,445 | 72,195,445 | |
TOTAL MONEY MARKET FUNDS (Cost $156,778,273) | 156,778,273 | ||
TOTAL INVESTMENT PORTFOLIO - 105.6% (Cost $1,267,596,088) | 1,366,057,405 | ||
NET OTHER ASSETS - (5.6)% | (72,310,540) | ||
NET ASSETS - 100% | $ 1,293,746,865 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated company |
(e) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
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 | $ 73,996 |
Fidelity Securities Lending Cash Central Fund | 109,613 |
Total | $ 183,609 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
Commercial Vehicle Group, Inc. | $ - | $ 6,978,148 | $ - | $ - | $ 6,059,178 |
Online Resources Corp. | 7,502,350 | 2,970,420 | 537,693 | - | 7,351,550 |
Town Sports International Holdings, Inc. | 4,060,850 | 759,596 | 3,156,729 | - | - |
Total | $ 11,563,200 | $ 10,708,164 | $ 3,694,422 | $ - | $ 13,410,728 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 192,691,121 | $ 177,767,029 | $ 14,924,092 | $ - |
Consumer Staples | 20,245,611 | 20,245,611 | - | - |
Energy | 70,999,859 | 65,214,318 | 5,785,541 | - |
Financials | 44,839,507 | 44,839,507 | - | - |
Health Care | 302,051,370 | 278,233,008 | 23,818,362 | - |
Industrials | 241,797,029 | 235,755,528 | 6,041,501 | - |
Information Technology | 297,600,332 | 269,904,475 | 27,695,857 | - |
Materials | 25,394,300 | 25,394,300 | - | - |
Telecommunication Services | 8,378,960 | 8,378,960 | - | - |
Utilities | 5,281,043 | - | 5,281,043 | - |
Money Market Funds | 156,778,273 | 156,778,273 | - | - |
Total Investments in Securities: | $ 1,366,057,405 | $ 1,282,511,009 | $ 83,546,396 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 84.9% |
United Kingdom | 3.0% |
Germany | 2.6% |
Canada | 1.8% |
Netherlands | 1.4% |
Ireland | 1.0% |
Others (individually less than 1%) | 5.3% |
| 100.0% |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $225,666,789 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $200,880,622 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $68,084,615) - See accompanying schedule: Unaffiliated issuers (cost $1,094,844,850) | $ 1,195,868,404 |
|
Fidelity Central Funds (cost $156,778,273) | 156,778,273 |
|
Other affiliated issuers (cost $15,972,965) | 13,410,728 |
|
Total Investments (cost $1,267,596,088) |
| $ 1,366,057,405 |
Receivable for investments sold | 18,354,204 | |
Receivable for fund shares sold | 2,081,611 | |
Dividends receivable | 211,183 | |
Distributions receivable from Fidelity Central Funds | 65,456 | |
Prepaid expenses | 4,772 | |
Receivable from investment adviser for expense reductions | 1,342 | |
Other receivables | 62,782 | |
Total assets | 1,386,838,755 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 18,968,668 | |
Payable for fund shares redeemed | 628,582 | |
Accrued management fee | 873,654 | |
Distribution fees payable | 38,761 | |
Other affiliated payables | 355,664 | |
Other payables and accrued expenses | 31,116 | |
Collateral on securities loaned, at value | 72,195,445 | |
Total liabilities | 93,091,890 | |
|
|
|
Net Assets | $ 1,293,746,865 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,503,833,560 | |
Accumulated net investment loss | (2,416,380) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (306,122,443) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 98,452,128 | |
Net Assets | $ 1,293,746,865 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 11.92 | |
|
|
|
Maximum offering price per share (100/94.25 of $11.92) | $ 12.65 | |
Class T: | $ 11.85 | |
|
|
|
Maximum offering price per share (100/96.50 of $11.85) | $ 12.28 | |
Class B: | $ 11.63 | |
|
|
|
Class C: | $ 11.61 | |
|
|
|
|
|
|
Small Cap Growth: | $ 12.04 | |
|
|
|
Class F: | $ 12.07 | |
|
|
|
Institutional Class: | $ 12.06 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 3,038,581 |
Special dividends |
| 1,670,000 |
Interest |
| 66 |
Income from Fidelity Central Funds |
| 183,609 |
Total income |
| 4,892,256 |
|
|
|
Expenses | ||
Management fee | $ 4,521,965 | |
Performance adjustment | 391,638 | |
Transfer agent fees | 1,920,466 | |
Distribution fees | 218,228 | |
Accounting and security lending fees | 237,439 | |
Custodian fees and expenses | 25,292 | |
Independent trustees' compensation | 3,736 | |
Registration fees | 72,280 | |
Audit | 29,339 | |
Legal | 4,307 | |
Miscellaneous | 10,541 | |
Total expenses before reductions | 7,435,231 | |
Expense reductions | (126,595) | 7,308,636 |
Net investment income (loss) | (2,416,380) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 138,282,411 | |
Other affiliated issuers | (2,158,131) |
|
Foreign currency transactions | (25,884) | |
Capital gains distributions from Fidelity Central Funds | 2,501 | |
Total net realized gain (loss) |
| 136,100,897 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (10,689,555) | |
Assets and liabilities in foreign currencies | (9,741) | |
Total change in net unrealized appreciation (depreciation) |
| (10,699,296) |
Net gain (loss) | 125,401,601 | |
Net increase (decrease) in net assets resulting from operations | $ 122,985,221 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (2,416,380) | $ (4,212,561) |
Net realized gain (loss) | 136,100,897 | (335,295,985) |
Change in net unrealized appreciation (depreciation) | (10,699,296) | 109,380,680 |
Net increase (decrease) in net assets resulting | 122,985,221 | (230,127,866) |
Share transactions - net increase (decrease) | (14,066,912) | 89,233,558 |
Redemption fees | 99,319 | 255,734 |
Total increase (decrease) in net assets | 109,017,628 | (140,638,574) |
|
|
|
Net Assets | ||
Beginning of period | 1,184,729,237 | 1,325,367,811 |
End of period (including accumulated net investment loss of $2,416,380 and $0, respectively) | $ 1,293,746,865 | $ 1,184,729,237 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 K | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.79 | $ 13.20 | $ 16.06 | $ 12.88 | $ 12.95 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.04) H | (.06) | (.11) | (.12) I | (.10) J | (.07) |
Net realized and unrealized gain (loss) | 1.17 | (2.35) | (1.73) | 3.39 | .18 | 3.01 |
Total from investment operations | 1.13 | (2.41) | (1.84) | 3.27 | .08 | 2.94 |
Distributions from net realized gain | - | - | (1.02) | (.09) | (.16) | - |
Redemption fees added to paid in capital E | - M | - M | - M | - M | .01 | .01 |
Net asset value, end of period | $ 11.92 | $ 10.79 | $ 13.20 | $ 16.06 | $ 12.88 | $ 12.95 |
Total Return B, C, D | 10.47% | (18.26)% | (12.26)% | 25.52% | .70% | 29.50% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 1.42% A | 1.33% | 1.40% | 1.44% | 1.53% | 1.55% A |
Expenses net of fee waivers, if any | 1.40% A | 1.33% | 1.40% | 1.40% | 1.40% | 1.45% A |
Expenses net of all reductions | 1.38% A | 1.33% | 1.39% | 1.39% | 1.35% | 1.36% A |
Net investment income (loss) | (.61)% A, H | (.64)% | (.74)% | (.80)% I | (.79)% J | (.78)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 43,630 | $ 40,211 | $ 42,187 | $ 33,588 | $ 18,104 | $ 4,719 |
Portfolio turnover rate G | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.88)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.84)%. J Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.85)%. K For the period November 3, 2004 (commencement of operations) to July 31, 2005. L Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. M Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 K | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.74 | $ 13.17 | $ 16.01 | $ 12.86 | $ 12.93 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.05) H | (.09) | (.15) | (.16) I | (.14) J | (.09) |
Net realized and unrealized gain (loss) | 1.16 | (2.34) | (1.73) | 3.38 | .19 | 3.01 |
Total from investment operations | 1.11 | (2.43) | (1.88) | 3.22 | .05 | 2.92 |
Distributions from net realized gain | - | - | (.96) | (.07) | (.13) | - |
Redemption fees added to paid in capital E | - M | - M | - M | - M | .01 | .01 |
Net asset value, end of period | $ 11.85 | $ 10.74 | $ 13.17 | $ 16.01 | $ 12.86 | $ 12.93 |
Total Return B, C, D | 10.34% | (18.45)% | (12.50)% | 25.18% | .48% | 29.30% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 1.68% A | 1.60% | 1.65% | 1.67% | 1.73% | 1.79% A |
Expenses net of fee waivers, if any | 1.65% A | 1.60% | 1.65% | 1.65% | 1.65% | 1.70% A |
Expenses net of all reductions | 1.63% A | 1.59% | 1.65% | 1.65% | 1.60% | 1.61% A |
Net investment income (loss) | (.86)% A, H | (.91)% | (.99)% | (1.05)% I | (1.04)% J | (1.03)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 22,452 | $ 21,533 | $ 21,754 | $ 26,419 | $ 19,205 | $ 5,240 |
Portfolio turnover rate G | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.13)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.09)%. J Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.10)%. K For the period November 3, 2004 (commencement of operations) to July 31, 2005. L Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. M Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 K | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.57 | $ 13.03 | $ 15.85 | $ 12.78 | $ 12.87 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.08) H | (.13) | (.22) | (.23) I | (.20) J | (.13) |
Net realized and unrealized gain (loss) | 1.14 | (2.33) | (1.71) | 3.36 | .19 | 2.99 |
Total from investment operations | 1.06 | (2.46) | (1.93) | 3.13 | (.01) | 2.86 |
Distributions from net realized gain | - | - | (.89) | (.06) | (.09) | - |
Redemption fees added to paid in capital E | - M | - M | - M | - M | .01 | .01 |
Net asset value, end of period | $ 11.63 | $ 10.57 | $ 13.03 | $ 15.85 | $ 12.78 | $ 12.87 |
Total Return B, C, D | 10.03% | (18.88)% | (12.92)% | 24.57% | (.03)% | 28.70% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 2.18% A | 2.08% | 2.15% | 2.20% | 2.28% | 2.33% A |
Expenses net of fee waivers, if any | 2.15% A | 2.08% | 2.15% | 2.15% | 2.15% | 2.20% A |
Expenses net of all reductions | 2.13% A | 2.08% | 2.15% | 2.15% | 2.10% | 2.11% A |
Net investment income (loss) | (1.36)% A, H | (1.39)% | (1.49)% | (1.55)% I | (1.54)% J | (1.53)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 4,792 | $ 4,171 | $ 5,517 | $ 6,242 | $ 5,191 | $ 2,055 |
Portfolio turnover rate G | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.63)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.59)%. J Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.60)%. K For the period Novem-ber 3, 2004 (commencement of operations) to July 31, 2005. L Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. M Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 K | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.55 | $ 13.00 | $ 15.84 | $ 12.77 | $ 12.88 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.08) H | (.13) | (.22) | (.23) I | (.20) J | (.13) |
Net realized and unrealized gain (loss) | 1.14 | (2.32) | (1.71) | 3.36 | .18 | 3.00 |
Total from investment operations | 1.06 | (2.45) | (1.93) | 3.13 | (.02) | 2.87 |
Distributions from net realized gain | - | - | (.91) | (.06) | (.10) | - |
Redemption fees added to paid in capital E | - M | - M | - M | - M | .01 | .01 |
Net asset value, end of period | $ 11.61 | $ 10.55 | $ 13.00 | $ 15.84 | $ 12.77 | $ 12.88 |
Total Return B, C, D | 10.05% | (18.85)% | (12.94)% | 24.59% | (.08)% | 28.80% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 2.18% A | 2.08% | 2.15% | 2.20% | 2.25% | 2.24% A |
Expenses net of fee waivers, if any | 2.15% A | 2.08% | 2.15% | 2.15% | 2.15% | 2.17% A |
Expenses net of all reductions | 2.13% A | 2.07% | 2.14% | 2.14% | 2.10% | 2.09% A |
Net investment income (loss) | (1.36)% A, H | (1.39)% | (1.49)% | (1.55)% I | (1.54)% J | (1.50)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 16,380 | $ 14,267 | $ 15,946 | $ 22,348 | $ 14,682 | $ 8,372 |
Portfolio turnover rate G | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.63)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.59)%. J Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.60)%. K For the period Novem-ber 3, 2004 (commencement of operations) to July 31, 2005. L Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. M Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Growth
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 J | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.89 | $ 13.29 | $ 16.15 | $ 12.93 | $ 12.98 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | (.02) G | (.04) | (.07) | (.08) H | (.07) I | (.04) |
Net realized and unrealized gain (loss) | 1.17 | (2.36) | (1.74) | 3.40 | .19 | 3.01 |
Total from investment operations | 1.15 | (2.40) | (1.81) | 3.32 | .12 | 2.97 |
Distributions from net realized gain | - | - | (1.05) | (.10) | (.18) | - |
Redemption fees added to paid in capital D | - L | - L | - L | - L | .01 | .01 |
Net asset value, end of period | $ 12.04 | $ 10.89 | $ 13.29 | $ 16.15 | $ 12.93 | $ 12.98 |
Total Return B, C | 10.56% | (18.06)% | (11.98)% | 25.84% | 1.01% | 29.80% |
Ratios to Average Net Assets E, K |
|
|
|
|
| |
Expenses before reductions | 1.13% A | 1.08% | 1.11% | 1.10% | 1.13% | 1.16% A |
Expenses net of fee waivers, if any | 1.13% A | 1.08% | 1.11% | 1.10% | 1.13% | 1.16% A |
Expenses net of all reductions | 1.12% A | 1.08% | 1.10% | 1.09% | 1.08% | 1.08% A |
Net investment income (loss) | (.35)% A, G | (.39)% | (.45)% | (.50)% H | (.52)% I | (.49)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 1,144,530 | $ 1,085,184 | $ 1,217,520 | $ 1,149,809 | $ 402,353 | $ 205,652 |
Portfolio turnover rate F | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.61)%. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.54)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.58)%. J For the period November 3, 2004 (commencement of operations) to July 31, 2005. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended | Years ended |
(Unaudited) | 2009 I | |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 10.90 | $ 10.03 |
Income from Investment Operations |
|
|
Net investment income (loss) D | - G, K | (.01) |
Net realized and unrealized gain (loss) | 1.17 | .88 H |
Total from investment operations | 1.17 | .87 |
Redemption fee added to paid in capital D, K | - | - |
Net asset value, end of period | $ 12.07 | $ 10.90 |
Total Return B, C | 10.73% | 8.67% |
Ratios to Average Net Assets E, J |
|
|
Expenses before reductions | .83% A | .74% A |
Expenses net of fee waivers, if any | .83% A | .74% A |
Expenses net of all reductions | .81% A | .73% A |
Net investment income (loss) | (.05)% A, G | (.54)% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 42,754 | $ 159 |
Portfolio turnover rate F | 108% A | 150% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.31)%. H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 J | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.91 | $ 13.30 | $ 16.15 | $ 12.92 | $ 12.97 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | (.02) G | (.03) | (.06) | (.07) H | (.07) I | (.04) |
Net realized and unrealized gain (loss) | 1.17 | (2.36) | (1.74) | 3.41 | .19 | 3.00 |
Total from investment operations | 1.15 | (2.39) | (1.80) | 3.34 | .12 | 2.96 |
Distributions from net realized gain | - | - | (1.05) | (.11) | (.18) | - |
Redemption fees added to paid in capital D | - L | - L | - L | - L | .01 | .01 |
Net asset value, end of period | $ 12.06 | $ 10.91 | $ 13.30 | $ 16.15 | $ 12.92 | $ 12.97 |
Total Return B, C | 10.54% | (17.97)% | (11.93)% | 25.99% | .97% | 29.70% |
Ratios to Average Net Assets E, K |
|
|
|
|
| |
Expenses before reductions | 1.08% A | 1.05% | 1.04% | 1.05% | 1.10% | 1.20% A |
Expenses net of fee waivers, if any | 1.08% A | 1.05% | 1.04% | 1.05% | 1.10% | 1.18% A |
Expenses net of all reductions | 1.06% A | 1.04% | 1.03% | 1.05% | 1.05% | 1.10% A |
Net investment income (loss) | (.29)% A, G | (.36)% | (.38)% | (.46)% H | (.49)% I | (.51)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 19,210 | $ 19,204 | $ 22,444 | $ 18,671 | $ 14,233 | $ 1,906 |
Portfolio turnover rate F | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.56)%. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.50)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.55)%. J For the period November 3, 2004 (commencement of operations) to July 31, 2005. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
1. Organization.
Fidelity Small Cap Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, Small Cap Growth, Class F and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 157,248,032 |
|
Gross unrealized depreciation | (65,671,189) |
|
Net unrealized appreciation (depreciation) | $ 91,576,843 |
|
|
|
|
Tax cost | $ 1,274,480,562 |
|
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All
Semiannual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees - continued
redemption fees, including any estimated redemption fees paid by FMR, 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 $643,292,838 and $692,876,646, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class of the Fund, Small Cap Growth, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .77% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution | Service | Paid to | Retained |
Class A | -% | .25% | $ 55,419 | $ 1,955 |
Class T | .25% | .25% | 57,870 | - |
Class B | .75% | .25% | 23,116 | 17,337 |
Class C | .75% | .25% | 81,823 | 16,035 |
|
|
| $ 218,228 | $ 35,327 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 14,451 |
Class T | 3,032 |
Class B* | 2,716 |
Class C* | 661 |
| $ 20,860 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of each class, except for Class F. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Class A | $ 74,570 | .34 |
Class T | 39,990 | .35 |
Class B | 7,941 | .34 |
Class C | 28,157 | .34 |
Small Cap Growth | 1,745,899 | .30 |
Institutional Class | 23,909 | .25 |
| $ 1,920,466 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $10,819 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,453 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $109,613.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | 1.40% | $ 4,040 |
Class T | 1.65% | 3,237 |
Class B | 2.15% | 654 |
Class C | 2.15% | 2,325 |
|
| $ 10,256 |
* Expense limitation in effect at period end.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $116,328 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $11.
Semiannual Report
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 876,829 | 1,768,538 | $ 10,246,640 | $ 16,919,128 |
Shares redeemed | (941,525) | (1,239,291) | (10,924,770) | (11,138,983) |
Net increase (decrease) | (64,696) | 529,247 | $ (678,130) | $ 5,780,145 |
Class T |
|
|
|
|
Shares sold | 255,929 | 1,485,602 | $ 2,983,172 | $ 12,842,623 |
Shares redeemed | (365,247) | (1,132,759) | (4,294,949) | (9,596,209) |
Net increase (decrease) | (109,318) | 352,843 | $ (1,311,777) | $ 3,246,414 |
Class B |
|
|
|
|
Shares sold | 61,930 | 116,072 | $ 708,187 | $ 1,042,949 |
Shares redeemed | (44,439) | (145,097) | (504,946) | (1,355,668) |
Net increase (decrease) | 17,491 | (29,025) | $ 203,241 | $ (312,719) |
Class C |
|
|
|
|
Shares sold | 248,890 | 604,934 | $ 2,842,168 | $ 5,793,290 |
Shares redeemed | (189,884) | (479,386) | (2,227,980) | (4,290,700) |
Net increase (decrease) | 59,006 | 125,548 | $ 614,188 | $ 1,502,590 |
Small Cap Growth |
|
|
|
|
Shares sold | 11,154,403 | 30,718,046 | $ 132,014,131 | $ 287,281,815 |
Shares redeemed | (15,746,553) | (22,726,319) | (185,597,494) | (209,407,815) |
Net increase (decrease) | (4,592,150) | 7,991,727 | $ (53,583,363) | $ 77,874,000 |
Class F |
|
|
|
|
Shares sold | 3,612,384 | 14,590 | $ 43,584,992 | $ 145,457 |
Shares redeemed | (84,190) | (12) | (1,022,050) | (113) |
Net increase (decrease) | 3,528,194 | 14,578 | $ 42,562,942 | $ 145,344 |
Institutional Class |
|
|
|
|
Shares sold | 475,265 | 802,152 | $ 5,668,140 | $ 7,245,594 |
Shares redeemed | (643,442) | (728,847) | (7,542,153) | (6,247,810) |
Net increase (decrease) | (168,177) | 73,305 | $ (1,874,013) | $ 997,784 |
A Share transactions for Class F are for the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Other - continued
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, Fidelity Freedom 2020 Fund and Fidelity Freedom 2030 Fund were the owners of record of approximately 12% and 10% of the total outstanding shares of the Fund. The Fidelity Freedom Funds were the owners of record, in the aggregate, of approximately 51% of the total outstanding shares of the Fund.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.
By Phone
Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Workplace
Investing
1-800-835-5092
By PC
Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.401k.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research
(U.K.) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisors
FIL Investment Advisors (U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operating Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
SCP-F-SANN-0310 1.891909.100
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor
Small Cap Growth
Fund - Class A, Class T,
Class B and Class C
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Class A, Class T, Class B,
and Class C are classes
of Fidelity® Small Cap
Growth Fund
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,104.70 | $ 7.43 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,103.40 | $ 8.75 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,100.30 | $ 11.38 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,100.50 | $ 11.38 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Small Cap Growth | 1.13% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,105.60 | $ 6.00 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.51 | $ 5.75 |
Class F | .83% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,107.30 | $ 4.41 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.02 | $ 4.23 |
Institutional Class | 1.08% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,105.40 | $ 5.73 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.76 | $ 5.50 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Riverbed Technology, Inc. | 1.4 | 0.5 |
j2 Global Communications, Inc. | 1.2 | 1.5 |
Plantronics, Inc. | 1.2 | 1.0 |
EXCO Resources, Inc. | 1.2 | 1.8 |
Microsemi Corp. | 1.2 | 0.0 |
Avis Budget Group, Inc. | 1.1 | 0.0 |
Monster Worldwide, Inc. | 1.1 | 0.8 |
Wright Express Corp. | 1.1 | 0.8 |
Brookdale Senior Living, Inc. | 1.0 | 1.1 |
Comstock Resources, Inc. | 1.0 | 0.8 |
| 11.5 | |
Top Five Market Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Health Care | 23.3 | 20.7 |
Information Technology | 23.0 | 24.0 |
Industrials | 18.7 | 15.5 |
Consumer Discretionary | 14.9 | 15.9 |
Energy | 5.5 | 6.1 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks 93.5% |
| ![]() | Stocks 95.7% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 15.1% |
| ** Foreign investments | 11.2% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.5% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 14.9% | |||
Auto Components - 1.8% | |||
BorgWarner, Inc. | 360,000 | $ 12,632,400 | |
ElringKlinger AG | 194,187 | 4,316,300 | |
Modine Manufacturing Co. (a) | 609,000 | 5,791,590 | |
| 22,740,290 | ||
Distributors - 0.5% | |||
Delticom AG | 176,000 | 7,063,252 | |
Diversified Consumer Services - 1.5% | |||
Regis Corp. | 604,400 | 9,628,092 | |
Steiner Leisure Ltd. (a) | 248,000 | 9,880,320 | |
| 19,508,412 | ||
Hotels, Restaurants & Leisure - 3.0% | |||
Bally Technologies, Inc. (a) | 187,600 | 7,442,092 | |
BJ's Restaurants, Inc. (a)(c) | 320,000 | 6,764,800 | |
Life Time Fitness, Inc. (a)(c) | 358,000 | 8,574,100 | |
Town Sports International Holdings, Inc. (a) | 33,442 | 78,923 | |
WMS Industries, Inc. (a) | 194,750 | 7,221,330 | |
Wyndham Worldwide Corp. | 419,000 | 8,794,810 | |
| 38,876,055 | ||
Household Durables - 2.0% | |||
Dorel Industries, Inc. Class B (sub. vtg.) | 309,550 | 8,835,188 | |
Hooker Furniture Corp. | 517,476 | 6,577,120 | |
Tempur-Pedic International, Inc. (a) | 444,000 | 11,051,160 | |
| 26,463,468 | ||
Multiline Retail - 0.6% | |||
Dollarama, Inc. | 385,000 | 7,290,985 | |
Specialty Retail - 2.9% | |||
Casual Male Retail Group, Inc. (a) | 2,348,113 | 6,574,716 | |
Citi Trends, Inc. (a) | 345,000 | 10,739,850 | |
Jos. A. Bank Clothiers, Inc. (a)(c) | 145,000 | 6,076,950 | |
Sally Beauty Holdings, Inc. (a) | 836,000 | 6,972,240 | |
Signet Jewelers Ltd. (a) | 250,000 | 6,840,000 | |
| 37,203,756 | ||
Textiles, Apparel & Luxury Goods - 2.6% | |||
Fossil, Inc. (a) | 305,000 | 9,958,250 | |
G-III Apparel Group Ltd. (a) | 430,300 | 7,491,523 | |
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - continued | |||
Textiles, Apparel & Luxury Goods - continued | |||
Iconix Brand Group, Inc. (a) | 994,500 | $ 12,550,590 | |
Ted Baker PLC | 450,000 | 3,544,540 | |
| 33,544,903 | ||
TOTAL CONSUMER DISCRETIONARY | 192,691,121 | ||
CONSUMER STAPLES - 1.6% | |||
Food Products - 1.6% | |||
Calavo Growers, Inc. (c) | 534,046 | 8,950,611 | |
Smithfield Foods, Inc. (a)(c) | 750,000 | 11,295,000 | |
| 20,245,611 | ||
ENERGY - 5.5% | |||
Energy Equipment & Services - 1.2% | |||
Northern Offshore Ltd. (a) | 3,345,000 | 5,785,541 | |
Parker Drilling Co. (a) | 2,055,000 | 9,884,550 | |
| 15,670,091 | ||
Oil, Gas & Consumable Fuels - 4.3% | |||
Arena Resources, Inc. (a) | 210,000 | 8,051,400 | |
Cabot Oil & Gas Corp. | 175,600 | 6,720,212 | |
Comstock Resources, Inc. (a) | 336,198 | 13,108,360 | |
EXCO Resources, Inc. | 875,400 | 15,354,516 | |
Massey Energy Co. | 314,000 | 12,095,280 | |
| 55,329,768 | ||
TOTAL ENERGY | 70,999,859 | ||
FINANCIALS - 3.5% | |||
Capital Markets - 1.5% | |||
Fifth Street Finance Corp. | 565,000 | 6,186,750 | |
Janus Capital Group, Inc. | 497,800 | 6,078,138 | |
optionsXpress Holdings, Inc. | 455,000 | 6,529,250 | |
| 18,794,138 | ||
Commercial Banks - 1.0% | |||
CapitalSource, Inc. | 1,295,000 | 6,203,050 | |
Huntington Bancshares, Inc. | 1,371,100 | 6,567,569 | |
| 12,770,619 | ||
Real Estate Investment Trusts - 0.4% | |||
CBL & Associates Properties, Inc. | 538,000 | 5,380,000 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Thrifts & Mortgage Finance - 0.6% | |||
First Niagara Financial Group, Inc. | 575,000 | $ 7,894,750 | |
TOTAL FINANCIALS | 44,839,507 | ||
HEALTH CARE - 23.3% | |||
Biotechnology - 2.7% | |||
Dendreon Corp. (a)(c) | 328,200 | 9,091,140 | |
OREXIGEN Therapeutics, Inc. (a)(c) | 846,550 | 5,384,058 | |
PDL BioPharma, Inc. (c) | 1,200,000 | 7,680,000 | |
Theravance, Inc. (a)(c) | 444,000 | 4,870,680 | |
United Therapeutics Corp. (a) | 128,000 | 7,624,960 | |
| 34,650,838 | ||
Health Care Equipment & Supplies - 5.3% | |||
ev3, Inc. (a) | 755,000 | 11,007,900 | |
Integra LifeSciences Holdings Corp. (a) | 287,400 | 11,036,160 | |
Meridian Bioscience, Inc. (c) | 464,605 | 9,310,684 | |
Natus Medical, Inc. (a) | 613,000 | 8,318,410 | |
Orthofix International NV (a) | 200,000 | 6,026,000 | |
Sirona Dental Systems, Inc. (a) | 224,000 | 7,206,080 | |
STRATEC Biomedical Systems AG | 175,000 | 6,105,175 | |
Wright Medical Group, Inc. (a) | 522,000 | 9,333,360 | |
| 68,343,769 | ||
Health Care Providers & Services - 6.8% | |||
Brookdale Senior Living, Inc. (a) | 728,000 | 13,286,000 | |
Community Health Systems, Inc. (a) | 351,000 | 11,449,620 | |
Emergency Medical Services Corp. Class A (a) | 165,000 | 8,664,150 | |
Hanger Orthopedic Group, Inc. (a) | 606,900 | 9,868,194 | |
Health Management Associates, Inc. Class A (a) | 1,672,000 | 11,102,080 | |
Providence Service Corp. (a) | 393,800 | 5,056,392 | |
PSS World Medical, Inc. (a) | 564,499 | 11,583,519 | |
Psychiatric Solutions, Inc. (a) | 430,000 | 9,481,500 | |
Synergy Health PLC | 780,411 | 7,672,813 | |
| 88,164,268 | ||
Health Care Technology - 0.6% | |||
Computer Programs & Systems, Inc. | 230,000 | 8,654,900 | |
Life Sciences Tools & Services - 4.1% | |||
Bruker BioSciences Corp. (a) | 885,000 | 10,858,950 | |
ICON PLC sponsored ADR (a) | 520,000 | 12,916,800 | |
Illumina, Inc. (a) | 122,900 | 4,509,201 | |
PerkinElmer, Inc. | 435,000 | 8,760,900 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Life Sciences Tools & Services - continued | |||
QIAGEN NV (a) | 361,000 | $ 7,855,360 | |
Varian, Inc. (a)(c) | 165,000 | 8,507,400 | |
| 53,408,611 | ||
Pharmaceuticals - 3.8% | |||
Ardea Biosciences, Inc. (a)(c) | 472,000 | 6,910,080 | |
Biodel, Inc. (a) | 425,000 | 1,704,250 | |
Cadence Pharmaceuticals, Inc. (a)(c) | 659,000 | 6,563,640 | |
Hikma Pharmaceuticals PLC | 1,150,000 | 10,040,374 | |
Optimer Pharmaceuticals, Inc. (a)(c) | 513,000 | 6,320,160 | |
ViroPharma, Inc. (a) | 1,000,000 | 9,880,000 | |
XenoPort, Inc. (a) | 401,000 | 7,410,480 | |
| 48,828,984 | ||
TOTAL HEALTH CARE | 302,051,370 | ||
INDUSTRIALS - 18.7% | |||
Aerospace & Defense - 0.7% | |||
Teledyne Technologies, Inc. (a) | 237,000 | 8,830,620 | |
Airlines - 1.2% | |||
AirTran Holdings, Inc. (a)(c) | 1,930,000 | 9,302,600 | |
Hawaiian Holdings, Inc. (a) | 961,800 | 5,713,092 | |
| 15,015,692 | ||
Building Products - 0.7% | |||
Armstrong World Industries, Inc. (a) | 257,000 | 9,362,510 | |
Commercial Services & Supplies - 1.3% | |||
InnerWorkings, Inc. (a)(c) | 87,497 | 501,358 | |
The Geo Group, Inc. (a) | 503,000 | 9,305,500 | |
Waste Connections, Inc. (a) | 235,000 | 7,559,950 | |
| 17,366,808 | ||
Construction & Engineering - 1.5% | |||
Chicago Bridge & Iron Co. NV (NY Shares) (a) | 511,000 | 10,368,190 | |
Orion Marine Group, Inc. (a) | 490,000 | 9,275,700 | |
| 19,643,890 | ||
Electrical Equipment - 2.8% | |||
Acuity Brands, Inc. (c) | 340,100 | 12,168,778 | |
Regal-Beloit Corp. | 217,000 | 10,285,800 | |
Roth & Rau AG (a)(c) | 150,000 | 6,041,501 | |
SunPower Corp. Class B (a) | 407,400 | 7,565,418 | |
| 36,061,497 | ||
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Machinery - 3.3% | |||
Altra Holdings, Inc. (a) | 770,000 | $ 8,485,400 | |
Blount International, Inc. (a) | 1,100,000 | 12,254,000 | |
Commercial Vehicle Group, Inc. (a)(d) | 1,264,964 | 6,059,178 | |
Duoyuan Global Water, Inc. ADR | 232,600 | 6,629,100 | |
OSG Corp. (c) | 825,000 | 9,047,856 | |
| 42,475,534 | ||
Professional Services - 1.9% | |||
Kforce, Inc. (a) | 780,000 | 10,428,600 | |
Monster Worldwide, Inc. (a)(c) | 905,880 | 14,122,669 | |
| 24,551,269 | ||
Road & Rail - 2.2% | |||
Avis Budget Group, Inc. (a) | 1,333,000 | 14,423,060 | |
Contrans Group, Inc. Class A | 981,600 | 6,664,562 | |
Knight Transportation, Inc. | 387,300 | 7,010,130 | |
| 28,097,752 | ||
Trading Companies & Distributors - 2.3% | |||
Beacon Roofing Supply, Inc. (a) | 744,000 | 12,499,200 | |
Interline Brands, Inc. (a) | 550,000 | 9,240,000 | |
Rush Enterprises, Inc. Class A (a) | 773,254 | 8,784,165 | |
| 30,523,365 | ||
Transportation Infrastructure - 0.8% | |||
Aegean Marine Petroleum Network, Inc. | 317,200 | 9,868,092 | |
TOTAL INDUSTRIALS | 241,797,029 | ||
INFORMATION TECHNOLOGY - 23.0% | |||
Communications Equipment - 5.5% | |||
Adtran, Inc. | 510,000 | 10,812,000 | |
CommScope, Inc. (a) | 275,200 | 7,488,192 | |
Plantronics, Inc. | 595,000 | 15,719,900 | |
Polycom, Inc. (a) | 360,000 | 8,074,800 | |
Riverbed Technology, Inc. (a) | 785,000 | 17,599,701 | |
ViaSat, Inc. (a) | 410,700 | 11,224,431 | |
| 70,919,024 | ||
Computers & Peripherals - 2.4% | |||
Super Micro Computer, Inc. (a) | 1,050,000 | 12,988,500 | |
Synaptics, Inc. (a)(c) | 303,000 | 7,668,930 | |
Wincor Nixdorf AG (c) | 157,400 | 10,618,282 | |
| 31,275,712 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Components - 1.1% | |||
Insight Enterprises, Inc. (a) | 535,000 | $ 6,157,850 | |
SYNNEX Corp. (a) | 290,000 | 7,676,300 | |
| 13,834,150 | ||
Internet Software & Services - 2.8% | |||
Art Technology Group, Inc. (a) | 1,620,652 | 7,260,521 | |
j2 Global Communications, Inc. (a) | 777,500 | 15,969,850 | |
Perficient, Inc. (a) | 432,154 | 4,196,215 | |
TelecityGroup PLC (a) | 1,466,600 | 9,152,191 | |
| 36,578,777 | ||
IT Services - 3.5% | |||
CACI International, Inc. Class A (a) | 179,400 | 8,605,818 | |
Datacash Group PLC | 2,486,200 | 7,925,384 | |
Online Resources Corp. (a)(d) | 1,522,060 | 7,351,550 | |
WNS Holdings Ltd. sponsored ADR (a) | 462,300 | 7,105,551 | |
Wright Express Corp. (a) | 472,000 | 13,857,920 | |
| 44,846,223 | ||
Semiconductors & Semiconductor Equipment - 3.4% | |||
Hittite Microwave Corp. (a) | 243,821 | 9,065,265 | |
Microsemi Corp. (a) | 997,000 | 14,895,180 | |
Teradyne, Inc. (a)(c) | 1,125,000 | 10,507,500 | |
Verigy Ltd. (a) | 865,000 | 9,376,600 | |
| 43,844,545 | ||
Software - 4.3% | |||
Blackbaud, Inc. | 361,059 | 8,051,616 | |
Informatica Corp. (a) | 381,000 | 9,025,890 | |
PROS Holdings, Inc. (a) | 496,135 | 3,944,273 | |
Radiant Systems, Inc. (a) | 820,000 | 9,471,000 | |
Solera Holdings, Inc. | 232,000 | 7,681,520 | |
Taleo Corp. Class A (a) | 431,039 | 8,754,402 | |
TeleCommunication Systems, Inc. Class A (a) | 1,070,000 | 9,373,200 | |
| 56,301,901 | ||
TOTAL INFORMATION TECHNOLOGY | 297,600,332 | ||
MATERIALS - 2.0% | |||
Chemicals - 0.8% | |||
Solutia, Inc. (a) | 717,000 | 9,858,750 | |
Containers & Packaging - 0.5% | |||
Myers Industries, Inc. | 677,500 | 6,192,350 | |
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Metals & Mining - 0.7% | |||
Commercial Metals Co. | 680,000 | $ 9,343,200 | |
TOTAL MATERIALS | 25,394,300 | ||
TELECOMMUNICATION SERVICES - 0.6% | |||
Diversified Telecommunication Services - 0.6% | |||
Premiere Global Services, Inc. (a) | 1,037,000 | 8,378,960 | |
UTILITIES - 0.4% | |||
Independent Power Producers & Energy Traders - 0.4% | |||
Terna Energy SA | 654,345 | 5,281,043 | |
TOTAL COMMON STOCKS (Cost $1,110,817,815) | 1,209,279,132 | ||
Money Market Funds - 12.1% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.17% (e) | 84,582,828 | 84,582,828 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(e) | 72,195,445 | 72,195,445 | |
TOTAL MONEY MARKET FUNDS (Cost $156,778,273) | 156,778,273 | ||
TOTAL INVESTMENT PORTFOLIO - 105.6% (Cost $1,267,596,088) | 1,366,057,405 | ||
NET OTHER ASSETS - (5.6)% | (72,310,540) | ||
NET ASSETS - 100% | $ 1,293,746,865 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated company |
(e) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
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 | $ 73,996 |
Fidelity Securities Lending Cash Central Fund | 109,613 |
Total | $ 183,609 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
Commercial Vehicle Group, Inc. | $ - | $ 6,978,148 | $ - | $ - | $ 6,059,178 |
Online Resources Corp. | 7,502,350 | 2,970,420 | 537,693 | - | 7,351,550 |
Town Sports International Holdings, Inc. | 4,060,850 | 759,596 | 3,156,729 | - | - |
Total | $ 11,563,200 | $ 10,708,164 | $ 3,694,422 | $ - | $ 13,410,728 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 192,691,121 | $ 177,767,029 | $ 14,924,092 | $ - |
Consumer Staples | 20,245,611 | 20,245,611 | - | - |
Energy | 70,999,859 | 65,214,318 | 5,785,541 | - |
Financials | 44,839,507 | 44,839,507 | - | - |
Health Care | 302,051,370 | 278,233,008 | 23,818,362 | - |
Industrials | 241,797,029 | 235,755,528 | 6,041,501 | - |
Information Technology | 297,600,332 | 269,904,475 | 27,695,857 | - |
Materials | 25,394,300 | 25,394,300 | - | - |
Telecommunication Services | 8,378,960 | 8,378,960 | - | - |
Utilities | 5,281,043 | - | 5,281,043 | - |
Money Market Funds | 156,778,273 | 156,778,273 | - | - |
Total Investments in Securities: | $ 1,366,057,405 | $ 1,282,511,009 | $ 83,546,396 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 84.9% |
United Kingdom | 3.0% |
Germany | 2.6% |
Canada | 1.8% |
Netherlands | 1.4% |
Ireland | 1.0% |
Others (individually less than 1%) | 5.3% |
| 100.0% |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $225,666,789 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $200,880,622 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $68,084,615) - See accompanying schedule: Unaffiliated issuers (cost $1,094,844,850) | $ 1,195,868,404 |
|
Fidelity Central Funds (cost $156,778,273) | 156,778,273 |
|
Other affiliated issuers (cost $15,972,965) | 13,410,728 |
|
Total Investments (cost $1,267,596,088) |
| $ 1,366,057,405 |
Receivable for investments sold | 18,354,204 | |
Receivable for fund shares sold | 2,081,611 | |
Dividends receivable | 211,183 | |
Distributions receivable from Fidelity Central Funds | 65,456 | |
Prepaid expenses | 4,772 | |
Receivable from investment adviser for expense reductions | 1,342 | |
Other receivables | 62,782 | |
Total assets | 1,386,838,755 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 18,968,668 | |
Payable for fund shares redeemed | 628,582 | |
Accrued management fee | 873,654 | |
Distribution fees payable | 38,761 | |
Other affiliated payables | 355,664 | |
Other payables and accrued expenses | 31,116 | |
Collateral on securities loaned, at value | 72,195,445 | |
Total liabilities | 93,091,890 | |
|
|
|
Net Assets | $ 1,293,746,865 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,503,833,560 | |
Accumulated net investment loss | (2,416,380) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (306,122,443) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 98,452,128 | |
Net Assets | $ 1,293,746,865 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 11.92 | |
|
|
|
Maximum offering price per share (100/94.25 of $11.92) | $ 12.65 | |
Class T: | $ 11.85 | |
|
|
|
Maximum offering price per share (100/96.50 of $11.85) | $ 12.28 | |
Class B: | $ 11.63 | |
|
|
|
Class C: | $ 11.61 | |
|
|
|
|
|
|
Small Cap Growth: | $ 12.04 | |
|
|
|
Class F: | $ 12.07 | |
|
|
|
Institutional Class: | $ 12.06 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 3,038,581 |
Special dividends |
| 1,670,000 |
Interest |
| 66 |
Income from Fidelity Central Funds |
| 183,609 |
Total income |
| 4,892,256 |
|
|
|
Expenses | ||
Management fee | $ 4,521,965 | |
Performance adjustment | 391,638 | |
Transfer agent fees | 1,920,466 | |
Distribution fees | 218,228 | |
Accounting and security lending fees | 237,439 | |
Custodian fees and expenses | 25,292 | |
Independent trustees' compensation | 3,736 | |
Registration fees | 72,280 | |
Audit | 29,339 | |
Legal | 4,307 | |
Miscellaneous | 10,541 | |
Total expenses before reductions | 7,435,231 | |
Expense reductions | (126,595) | 7,308,636 |
Net investment income (loss) | (2,416,380) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 138,282,411 | |
Other affiliated issuers | (2,158,131) |
|
Foreign currency transactions | (25,884) | |
Capital gains distributions from Fidelity Central Funds | 2,501 | |
Total net realized gain (loss) |
| 136,100,897 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (10,689,555) | |
Assets and liabilities in foreign currencies | (9,741) | |
Total change in net unrealized appreciation (depreciation) |
| (10,699,296) |
Net gain (loss) | 125,401,601 | |
Net increase (decrease) in net assets resulting from operations | $ 122,985,221 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (2,416,380) | $ (4,212,561) |
Net realized gain (loss) | 136,100,897 | (335,295,985) |
Change in net unrealized appreciation (depreciation) | (10,699,296) | 109,380,680 |
Net increase (decrease) in net assets resulting | 122,985,221 | (230,127,866) |
Share transactions - net increase (decrease) | (14,066,912) | 89,233,558 |
Redemption fees | 99,319 | 255,734 |
Total increase (decrease) in net assets | 109,017,628 | (140,638,574) |
|
|
|
Net Assets | ||
Beginning of period | 1,184,729,237 | 1,325,367,811 |
End of period (including accumulated net investment loss of $2,416,380 and $0, respectively) | $ 1,293,746,865 | $ 1,184,729,237 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 K | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.79 | $ 13.20 | $ 16.06 | $ 12.88 | $ 12.95 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.04) H | (.06) | (.11) | (.12) I | (.10) J | (.07) |
Net realized and unrealized gain (loss) | 1.17 | (2.35) | (1.73) | 3.39 | .18 | 3.01 |
Total from investment operations | 1.13 | (2.41) | (1.84) | 3.27 | .08 | 2.94 |
Distributions from net realized gain | - | - | (1.02) | (.09) | (.16) | - |
Redemption fees added to paid in capital E | - M | - M | - M | - M | .01 | .01 |
Net asset value, end of period | $ 11.92 | $ 10.79 | $ 13.20 | $ 16.06 | $ 12.88 | $ 12.95 |
Total Return B, C, D | 10.47% | (18.26)% | (12.26)% | 25.52% | .70% | 29.50% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 1.42% A | 1.33% | 1.40% | 1.44% | 1.53% | 1.55% A |
Expenses net of fee waivers, if any | 1.40% A | 1.33% | 1.40% | 1.40% | 1.40% | 1.45% A |
Expenses net of all reductions | 1.38% A | 1.33% | 1.39% | 1.39% | 1.35% | 1.36% A |
Net investment income (loss) | (.61)% A, H | (.64)% | (.74)% | (.80)% I | (.79)% J | (.78)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 43,630 | $ 40,211 | $ 42,187 | $ 33,588 | $ 18,104 | $ 4,719 |
Portfolio turnover rate G | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.88)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.84)%. J Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.85)%. K For the period November 3, 2004 (commencement of operations) to July 31, 2005. L Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. M Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 K | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.74 | $ 13.17 | $ 16.01 | $ 12.86 | $ 12.93 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.05) H | (.09) | (.15) | (.16) I | (.14) J | (.09) |
Net realized and unrealized gain (loss) | 1.16 | (2.34) | (1.73) | 3.38 | .19 | 3.01 |
Total from investment operations | 1.11 | (2.43) | (1.88) | 3.22 | .05 | 2.92 |
Distributions from net realized gain | - | - | (.96) | (.07) | (.13) | - |
Redemption fees added to paid in capital E | - M | - M | - M | - M | .01 | .01 |
Net asset value, end of period | $ 11.85 | $ 10.74 | $ 13.17 | $ 16.01 | $ 12.86 | $ 12.93 |
Total Return B, C, D | 10.34% | (18.45)% | (12.50)% | 25.18% | .48% | 29.30% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 1.68% A | 1.60% | 1.65% | 1.67% | 1.73% | 1.79% A |
Expenses net of fee waivers, if any | 1.65% A | 1.60% | 1.65% | 1.65% | 1.65% | 1.70% A |
Expenses net of all reductions | 1.63% A | 1.59% | 1.65% | 1.65% | 1.60% | 1.61% A |
Net investment income (loss) | (.86)% A, H | (.91)% | (.99)% | (1.05)% I | (1.04)% J | (1.03)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 22,452 | $ 21,533 | $ 21,754 | $ 26,419 | $ 19,205 | $ 5,240 |
Portfolio turnover rate G | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.13)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.09)%. J Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.10)%. K For the period November 3, 2004 (commencement of operations) to July 31, 2005. L Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. M Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 K | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.57 | $ 13.03 | $ 15.85 | $ 12.78 | $ 12.87 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.08) H | (.13) | (.22) | (.23) I | (.20) J | (.13) |
Net realized and unrealized gain (loss) | 1.14 | (2.33) | (1.71) | 3.36 | .19 | 2.99 |
Total from investment operations | 1.06 | (2.46) | (1.93) | 3.13 | (.01) | 2.86 |
Distributions from net realized gain | - | - | (.89) | (.06) | (.09) | - |
Redemption fees added to paid in capital E | - M | - M | - M | - M | .01 | .01 |
Net asset value, end of period | $ 11.63 | $ 10.57 | $ 13.03 | $ 15.85 | $ 12.78 | $ 12.87 |
Total Return B, C, D | 10.03% | (18.88)% | (12.92)% | 24.57% | (.03)% | 28.70% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 2.18% A | 2.08% | 2.15% | 2.20% | 2.28% | 2.33% A |
Expenses net of fee waivers, if any | 2.15% A | 2.08% | 2.15% | 2.15% | 2.15% | 2.20% A |
Expenses net of all reductions | 2.13% A | 2.08% | 2.15% | 2.15% | 2.10% | 2.11% A |
Net investment income (loss) | (1.36)% A, H | (1.39)% | (1.49)% | (1.55)% I | (1.54)% J | (1.53)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 4,792 | $ 4,171 | $ 5,517 | $ 6,242 | $ 5,191 | $ 2,055 |
Portfolio turnover rate G | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.63)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.59)%. J Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.60)%. K For the period Novem-ber 3, 2004 (commencement of operations) to July 31, 2005. L Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. M Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 K | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.55 | $ 13.00 | $ 15.84 | $ 12.77 | $ 12.88 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.08) H | (.13) | (.22) | (.23) I | (.20) J | (.13) |
Net realized and unrealized gain (loss) | 1.14 | (2.32) | (1.71) | 3.36 | .18 | 3.00 |
Total from investment operations | 1.06 | (2.45) | (1.93) | 3.13 | (.02) | 2.87 |
Distributions from net realized gain | - | - | (.91) | (.06) | (.10) | - |
Redemption fees added to paid in capital E | - M | - M | - M | - M | .01 | .01 |
Net asset value, end of period | $ 11.61 | $ 10.55 | $ 13.00 | $ 15.84 | $ 12.77 | $ 12.88 |
Total Return B, C, D | 10.05% | (18.85)% | (12.94)% | 24.59% | (.08)% | 28.80% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 2.18% A | 2.08% | 2.15% | 2.20% | 2.25% | 2.24% A |
Expenses net of fee waivers, if any | 2.15% A | 2.08% | 2.15% | 2.15% | 2.15% | 2.17% A |
Expenses net of all reductions | 2.13% A | 2.07% | 2.14% | 2.14% | 2.10% | 2.09% A |
Net investment income (loss) | (1.36)% A, H | (1.39)% | (1.49)% | (1.55)% I | (1.54)% J | (1.50)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 16,380 | $ 14,267 | $ 15,946 | $ 22,348 | $ 14,682 | $ 8,372 |
Portfolio turnover rate G | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.63)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.59)%. J Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.60)%. K For the period Novem-ber 3, 2004 (commencement of operations) to July 31, 2005. L Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. M Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Growth
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 J | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.89 | $ 13.29 | $ 16.15 | $ 12.93 | $ 12.98 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | (.02) G | (.04) | (.07) | (.08) H | (.07) I | (.04) |
Net realized and unrealized gain (loss) | 1.17 | (2.36) | (1.74) | 3.40 | .19 | 3.01 |
Total from investment operations | 1.15 | (2.40) | (1.81) | 3.32 | .12 | 2.97 |
Distributions from net realized gain | - | - | (1.05) | (.10) | (.18) | - |
Redemption fees added to paid in capital D | - L | - L | - L | - L | .01 | .01 |
Net asset value, end of period | $ 12.04 | $ 10.89 | $ 13.29 | $ 16.15 | $ 12.93 | $ 12.98 |
Total Return B, C | 10.56% | (18.06)% | (11.98)% | 25.84% | 1.01% | 29.80% |
Ratios to Average Net Assets E, K |
|
|
|
|
| |
Expenses before reductions | 1.13% A | 1.08% | 1.11% | 1.10% | 1.13% | 1.16% A |
Expenses net of fee waivers, if any | 1.13% A | 1.08% | 1.11% | 1.10% | 1.13% | 1.16% A |
Expenses net of all reductions | 1.12% A | 1.08% | 1.10% | 1.09% | 1.08% | 1.08% A |
Net investment income (loss) | (.35)% A, G | (.39)% | (.45)% | (.50)% H | (.52)% I | (.49)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 1,144,530 | $ 1,085,184 | $ 1,217,520 | $ 1,149,809 | $ 402,353 | $ 205,652 |
Portfolio turnover rate F | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.61)%. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.54)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.58)%. J For the period November 3, 2004 (commencement of operations) to July 31, 2005. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended | Years ended |
(Unaudited) | 2009 I | |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 10.90 | $ 10.03 |
Income from Investment Operations |
|
|
Net investment income (loss) D | - G, K | (.01) |
Net realized and unrealized gain (loss) | 1.17 | .88 H |
Total from investment operations | 1.17 | .87 |
Redemption fee added to paid in capital D, K | - | - |
Net asset value, end of period | $ 12.07 | $ 10.90 |
Total Return B, C | 10.73% | 8.67% |
Ratios to Average Net Assets E, J |
|
|
Expenses before reductions | .83% A | .74% A |
Expenses net of fee waivers, if any | .83% A | .74% A |
Expenses net of all reductions | .81% A | .73% A |
Net investment income (loss) | (.05)% A, G | (.54)% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 42,754 | $ 159 |
Portfolio turnover rate F | 108% A | 150% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.31)%. H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 J | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.91 | $ 13.30 | $ 16.15 | $ 12.92 | $ 12.97 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | (.02) G | (.03) | (.06) | (.07) H | (.07) I | (.04) |
Net realized and unrealized gain (loss) | 1.17 | (2.36) | (1.74) | 3.41 | .19 | 3.00 |
Total from investment operations | 1.15 | (2.39) | (1.80) | 3.34 | .12 | 2.96 |
Distributions from net realized gain | - | - | (1.05) | (.11) | (.18) | - |
Redemption fees added to paid in capital D | - L | - L | - L | - L | .01 | .01 |
Net asset value, end of period | $ 12.06 | $ 10.91 | $ 13.30 | $ 16.15 | $ 12.92 | $ 12.97 |
Total Return B, C | 10.54% | (17.97)% | (11.93)% | 25.99% | .97% | 29.70% |
Ratios to Average Net Assets E, K |
|
|
|
|
| |
Expenses before reductions | 1.08% A | 1.05% | 1.04% | 1.05% | 1.10% | 1.20% A |
Expenses net of fee waivers, if any | 1.08% A | 1.05% | 1.04% | 1.05% | 1.10% | 1.18% A |
Expenses net of all reductions | 1.06% A | 1.04% | 1.03% | 1.05% | 1.05% | 1.10% A |
Net investment income (loss) | (.29)% A, G | (.36)% | (.38)% | (.46)% H | (.49)% I | (.51)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 19,210 | $ 19,204 | $ 22,444 | $ 18,671 | $ 14,233 | $ 1,906 |
Portfolio turnover rate F | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.56)%. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.50)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.55)%. J For the period November 3, 2004 (commencement of operations) to July 31, 2005. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
1. Organization.
Fidelity Small Cap Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, Small Cap Growth, Class F and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 157,248,032 |
|
Gross unrealized depreciation | (65,671,189) |
|
Net unrealized appreciation (depreciation) | $ 91,576,843 |
|
|
|
|
Tax cost | $ 1,274,480,562 |
|
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All
Semiannual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees - continued
redemption fees, including any estimated redemption fees paid by FMR, 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 $643,292,838 and $692,876,646, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class of the Fund, Small Cap Growth, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .77% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution | Service | Paid to | Retained |
Class A | -% | .25% | $ 55,419 | $ 1,955 |
Class T | .25% | .25% | 57,870 | - |
Class B | .75% | .25% | 23,116 | 17,337 |
Class C | .75% | .25% | 81,823 | 16,035 |
|
|
| $ 218,228 | $ 35,327 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 14,451 |
Class T | 3,032 |
Class B* | 2,716 |
Class C* | 661 |
| $ 20,860 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of each class, except for Class F. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Class A | $ 74,570 | .34 |
Class T | 39,990 | .35 |
Class B | 7,941 | .34 |
Class C | 28,157 | .34 |
Small Cap Growth | 1,745,899 | .30 |
Institutional Class | 23,909 | .25 |
| $ 1,920,466 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $10,819 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,453 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $109,613.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | 1.40% | $ 4,040 |
Class T | 1.65% | 3,237 |
Class B | 2.15% | 654 |
Class C | 2.15% | 2,325 |
|
| $ 10,256 |
* Expense limitation in effect at period end.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $116,328 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $11.
Semiannual Report
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 876,829 | 1,768,538 | $ 10,246,640 | $ 16,919,128 |
Shares redeemed | (941,525) | (1,239,291) | (10,924,770) | (11,138,983) |
Net increase (decrease) | (64,696) | 529,247 | $ (678,130) | $ 5,780,145 |
Class T |
|
|
|
|
Shares sold | 255,929 | 1,485,602 | $ 2,983,172 | $ 12,842,623 |
Shares redeemed | (365,247) | (1,132,759) | (4,294,949) | (9,596,209) |
Net increase (decrease) | (109,318) | 352,843 | $ (1,311,777) | $ 3,246,414 |
Class B |
|
|
|
|
Shares sold | 61,930 | 116,072 | $ 708,187 | $ 1,042,949 |
Shares redeemed | (44,439) | (145,097) | (504,946) | (1,355,668) |
Net increase (decrease) | 17,491 | (29,025) | $ 203,241 | $ (312,719) |
Class C |
|
|
|
|
Shares sold | 248,890 | 604,934 | $ 2,842,168 | $ 5,793,290 |
Shares redeemed | (189,884) | (479,386) | (2,227,980) | (4,290,700) |
Net increase (decrease) | 59,006 | 125,548 | $ 614,188 | $ 1,502,590 |
Small Cap Growth |
|
|
|
|
Shares sold | 11,154,403 | 30,718,046 | $ 132,014,131 | $ 287,281,815 |
Shares redeemed | (15,746,553) | (22,726,319) | (185,597,494) | (209,407,815) |
Net increase (decrease) | (4,592,150) | 7,991,727 | $ (53,583,363) | $ 77,874,000 |
Class F |
|
|
|
|
Shares sold | 3,612,384 | 14,590 | $ 43,584,992 | $ 145,457 |
Shares redeemed | (84,190) | (12) | (1,022,050) | (113) |
Net increase (decrease) | 3,528,194 | 14,578 | $ 42,562,942 | $ 145,344 |
Institutional Class |
|
|
|
|
Shares sold | 475,265 | 802,152 | $ 5,668,140 | $ 7,245,594 |
Shares redeemed | (643,442) | (728,847) | (7,542,153) | (6,247,810) |
Net increase (decrease) | (168,177) | 73,305 | $ (1,874,013) | $ 997,784 |
A Share transactions for Class F are for the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Other - continued
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, Fidelity Freedom 2020 Fund and Fidelity Freedom 2030 Fund were the owners of record of approximately 12% and 10% of the total outstanding shares of the Fund. The Fidelity Freedom Funds were the owners of record, in the aggregate, of approximately 51% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
FIL Investments (Japan) Limited
FIL Investment Advisors
FIL Investment Advisors (U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
ASCP-USAN-0310 1.803716.106
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor
Small Cap Growth
Fund - Institutional Class
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Institutional Class
is a class of Fidelity®
Small Cap Growth
Fund
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,104.70 | $ 7.43 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,103.40 | $ 8.75 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,100.30 | $ 11.38 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,100.50 | $ 11.38 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Small Cap Growth | 1.13% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,105.60 | $ 6.00 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.51 | $ 5.75 |
Class F | .83% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,107.30 | $ 4.41 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.02 | $ 4.23 |
Institutional Class | 1.08% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,105.40 | $ 5.73 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.76 | $ 5.50 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Riverbed Technology, Inc. | 1.4 | 0.5 |
j2 Global Communications, Inc. | 1.2 | 1.5 |
Plantronics, Inc. | 1.2 | 1.0 |
EXCO Resources, Inc. | 1.2 | 1.8 |
Microsemi Corp. | 1.2 | 0.0 |
Avis Budget Group, Inc. | 1.1 | 0.0 |
Monster Worldwide, Inc. | 1.1 | 0.8 |
Wright Express Corp. | 1.1 | 0.8 |
Brookdale Senior Living, Inc. | 1.0 | 1.1 |
Comstock Resources, Inc. | 1.0 | 0.8 |
| 11.5 | |
Top Five Market Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Health Care | 23.3 | 20.7 |
Information Technology | 23.0 | 24.0 |
Industrials | 18.7 | 15.5 |
Consumer Discretionary | 14.9 | 15.9 |
Energy | 5.5 | 6.1 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks 93.5% |
| ![]() | Stocks 95.7% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 15.1% |
| ** Foreign investments | 11.2% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.5% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 14.9% | |||
Auto Components - 1.8% | |||
BorgWarner, Inc. | 360,000 | $ 12,632,400 | |
ElringKlinger AG | 194,187 | 4,316,300 | |
Modine Manufacturing Co. (a) | 609,000 | 5,791,590 | |
| 22,740,290 | ||
Distributors - 0.5% | |||
Delticom AG | 176,000 | 7,063,252 | |
Diversified Consumer Services - 1.5% | |||
Regis Corp. | 604,400 | 9,628,092 | |
Steiner Leisure Ltd. (a) | 248,000 | 9,880,320 | |
| 19,508,412 | ||
Hotels, Restaurants & Leisure - 3.0% | |||
Bally Technologies, Inc. (a) | 187,600 | 7,442,092 | |
BJ's Restaurants, Inc. (a)(c) | 320,000 | 6,764,800 | |
Life Time Fitness, Inc. (a)(c) | 358,000 | 8,574,100 | |
Town Sports International Holdings, Inc. (a) | 33,442 | 78,923 | |
WMS Industries, Inc. (a) | 194,750 | 7,221,330 | |
Wyndham Worldwide Corp. | 419,000 | 8,794,810 | |
| 38,876,055 | ||
Household Durables - 2.0% | |||
Dorel Industries, Inc. Class B (sub. vtg.) | 309,550 | 8,835,188 | |
Hooker Furniture Corp. | 517,476 | 6,577,120 | |
Tempur-Pedic International, Inc. (a) | 444,000 | 11,051,160 | |
| 26,463,468 | ||
Multiline Retail - 0.6% | |||
Dollarama, Inc. | 385,000 | 7,290,985 | |
Specialty Retail - 2.9% | |||
Casual Male Retail Group, Inc. (a) | 2,348,113 | 6,574,716 | |
Citi Trends, Inc. (a) | 345,000 | 10,739,850 | |
Jos. A. Bank Clothiers, Inc. (a)(c) | 145,000 | 6,076,950 | |
Sally Beauty Holdings, Inc. (a) | 836,000 | 6,972,240 | |
Signet Jewelers Ltd. (a) | 250,000 | 6,840,000 | |
| 37,203,756 | ||
Textiles, Apparel & Luxury Goods - 2.6% | |||
Fossil, Inc. (a) | 305,000 | 9,958,250 | |
G-III Apparel Group Ltd. (a) | 430,300 | 7,491,523 | |
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - continued | |||
Textiles, Apparel & Luxury Goods - continued | |||
Iconix Brand Group, Inc. (a) | 994,500 | $ 12,550,590 | |
Ted Baker PLC | 450,000 | 3,544,540 | |
| 33,544,903 | ||
TOTAL CONSUMER DISCRETIONARY | 192,691,121 | ||
CONSUMER STAPLES - 1.6% | |||
Food Products - 1.6% | |||
Calavo Growers, Inc. (c) | 534,046 | 8,950,611 | |
Smithfield Foods, Inc. (a)(c) | 750,000 | 11,295,000 | |
| 20,245,611 | ||
ENERGY - 5.5% | |||
Energy Equipment & Services - 1.2% | |||
Northern Offshore Ltd. (a) | 3,345,000 | 5,785,541 | |
Parker Drilling Co. (a) | 2,055,000 | 9,884,550 | |
| 15,670,091 | ||
Oil, Gas & Consumable Fuels - 4.3% | |||
Arena Resources, Inc. (a) | 210,000 | 8,051,400 | |
Cabot Oil & Gas Corp. | 175,600 | 6,720,212 | |
Comstock Resources, Inc. (a) | 336,198 | 13,108,360 | |
EXCO Resources, Inc. | 875,400 | 15,354,516 | |
Massey Energy Co. | 314,000 | 12,095,280 | |
| 55,329,768 | ||
TOTAL ENERGY | 70,999,859 | ||
FINANCIALS - 3.5% | |||
Capital Markets - 1.5% | |||
Fifth Street Finance Corp. | 565,000 | 6,186,750 | |
Janus Capital Group, Inc. | 497,800 | 6,078,138 | |
optionsXpress Holdings, Inc. | 455,000 | 6,529,250 | |
| 18,794,138 | ||
Commercial Banks - 1.0% | |||
CapitalSource, Inc. | 1,295,000 | 6,203,050 | |
Huntington Bancshares, Inc. | 1,371,100 | 6,567,569 | |
| 12,770,619 | ||
Real Estate Investment Trusts - 0.4% | |||
CBL & Associates Properties, Inc. | 538,000 | 5,380,000 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Thrifts & Mortgage Finance - 0.6% | |||
First Niagara Financial Group, Inc. | 575,000 | $ 7,894,750 | |
TOTAL FINANCIALS | 44,839,507 | ||
HEALTH CARE - 23.3% | |||
Biotechnology - 2.7% | |||
Dendreon Corp. (a)(c) | 328,200 | 9,091,140 | |
OREXIGEN Therapeutics, Inc. (a)(c) | 846,550 | 5,384,058 | |
PDL BioPharma, Inc. (c) | 1,200,000 | 7,680,000 | |
Theravance, Inc. (a)(c) | 444,000 | 4,870,680 | |
United Therapeutics Corp. (a) | 128,000 | 7,624,960 | |
| 34,650,838 | ||
Health Care Equipment & Supplies - 5.3% | |||
ev3, Inc. (a) | 755,000 | 11,007,900 | |
Integra LifeSciences Holdings Corp. (a) | 287,400 | 11,036,160 | |
Meridian Bioscience, Inc. (c) | 464,605 | 9,310,684 | |
Natus Medical, Inc. (a) | 613,000 | 8,318,410 | |
Orthofix International NV (a) | 200,000 | 6,026,000 | |
Sirona Dental Systems, Inc. (a) | 224,000 | 7,206,080 | |
STRATEC Biomedical Systems AG | 175,000 | 6,105,175 | |
Wright Medical Group, Inc. (a) | 522,000 | 9,333,360 | |
| 68,343,769 | ||
Health Care Providers & Services - 6.8% | |||
Brookdale Senior Living, Inc. (a) | 728,000 | 13,286,000 | |
Community Health Systems, Inc. (a) | 351,000 | 11,449,620 | |
Emergency Medical Services Corp. Class A (a) | 165,000 | 8,664,150 | |
Hanger Orthopedic Group, Inc. (a) | 606,900 | 9,868,194 | |
Health Management Associates, Inc. Class A (a) | 1,672,000 | 11,102,080 | |
Providence Service Corp. (a) | 393,800 | 5,056,392 | |
PSS World Medical, Inc. (a) | 564,499 | 11,583,519 | |
Psychiatric Solutions, Inc. (a) | 430,000 | 9,481,500 | |
Synergy Health PLC | 780,411 | 7,672,813 | |
| 88,164,268 | ||
Health Care Technology - 0.6% | |||
Computer Programs & Systems, Inc. | 230,000 | 8,654,900 | |
Life Sciences Tools & Services - 4.1% | |||
Bruker BioSciences Corp. (a) | 885,000 | 10,858,950 | |
ICON PLC sponsored ADR (a) | 520,000 | 12,916,800 | |
Illumina, Inc. (a) | 122,900 | 4,509,201 | |
PerkinElmer, Inc. | 435,000 | 8,760,900 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Life Sciences Tools & Services - continued | |||
QIAGEN NV (a) | 361,000 | $ 7,855,360 | |
Varian, Inc. (a)(c) | 165,000 | 8,507,400 | |
| 53,408,611 | ||
Pharmaceuticals - 3.8% | |||
Ardea Biosciences, Inc. (a)(c) | 472,000 | 6,910,080 | |
Biodel, Inc. (a) | 425,000 | 1,704,250 | |
Cadence Pharmaceuticals, Inc. (a)(c) | 659,000 | 6,563,640 | |
Hikma Pharmaceuticals PLC | 1,150,000 | 10,040,374 | |
Optimer Pharmaceuticals, Inc. (a)(c) | 513,000 | 6,320,160 | |
ViroPharma, Inc. (a) | 1,000,000 | 9,880,000 | |
XenoPort, Inc. (a) | 401,000 | 7,410,480 | |
| 48,828,984 | ||
TOTAL HEALTH CARE | 302,051,370 | ||
INDUSTRIALS - 18.7% | |||
Aerospace & Defense - 0.7% | |||
Teledyne Technologies, Inc. (a) | 237,000 | 8,830,620 | |
Airlines - 1.2% | |||
AirTran Holdings, Inc. (a)(c) | 1,930,000 | 9,302,600 | |
Hawaiian Holdings, Inc. (a) | 961,800 | 5,713,092 | |
| 15,015,692 | ||
Building Products - 0.7% | |||
Armstrong World Industries, Inc. (a) | 257,000 | 9,362,510 | |
Commercial Services & Supplies - 1.3% | |||
InnerWorkings, Inc. (a)(c) | 87,497 | 501,358 | |
The Geo Group, Inc. (a) | 503,000 | 9,305,500 | |
Waste Connections, Inc. (a) | 235,000 | 7,559,950 | |
| 17,366,808 | ||
Construction & Engineering - 1.5% | |||
Chicago Bridge & Iron Co. NV (NY Shares) (a) | 511,000 | 10,368,190 | |
Orion Marine Group, Inc. (a) | 490,000 | 9,275,700 | |
| 19,643,890 | ||
Electrical Equipment - 2.8% | |||
Acuity Brands, Inc. (c) | 340,100 | 12,168,778 | |
Regal-Beloit Corp. | 217,000 | 10,285,800 | |
Roth & Rau AG (a)(c) | 150,000 | 6,041,501 | |
SunPower Corp. Class B (a) | 407,400 | 7,565,418 | |
| 36,061,497 | ||
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Machinery - 3.3% | |||
Altra Holdings, Inc. (a) | 770,000 | $ 8,485,400 | |
Blount International, Inc. (a) | 1,100,000 | 12,254,000 | |
Commercial Vehicle Group, Inc. (a)(d) | 1,264,964 | 6,059,178 | |
Duoyuan Global Water, Inc. ADR | 232,600 | 6,629,100 | |
OSG Corp. (c) | 825,000 | 9,047,856 | |
| 42,475,534 | ||
Professional Services - 1.9% | |||
Kforce, Inc. (a) | 780,000 | 10,428,600 | |
Monster Worldwide, Inc. (a)(c) | 905,880 | 14,122,669 | |
| 24,551,269 | ||
Road & Rail - 2.2% | |||
Avis Budget Group, Inc. (a) | 1,333,000 | 14,423,060 | |
Contrans Group, Inc. Class A | 981,600 | 6,664,562 | |
Knight Transportation, Inc. | 387,300 | 7,010,130 | |
| 28,097,752 | ||
Trading Companies & Distributors - 2.3% | |||
Beacon Roofing Supply, Inc. (a) | 744,000 | 12,499,200 | |
Interline Brands, Inc. (a) | 550,000 | 9,240,000 | |
Rush Enterprises, Inc. Class A (a) | 773,254 | 8,784,165 | |
| 30,523,365 | ||
Transportation Infrastructure - 0.8% | |||
Aegean Marine Petroleum Network, Inc. | 317,200 | 9,868,092 | |
TOTAL INDUSTRIALS | 241,797,029 | ||
INFORMATION TECHNOLOGY - 23.0% | |||
Communications Equipment - 5.5% | |||
Adtran, Inc. | 510,000 | 10,812,000 | |
CommScope, Inc. (a) | 275,200 | 7,488,192 | |
Plantronics, Inc. | 595,000 | 15,719,900 | |
Polycom, Inc. (a) | 360,000 | 8,074,800 | |
Riverbed Technology, Inc. (a) | 785,000 | 17,599,701 | |
ViaSat, Inc. (a) | 410,700 | 11,224,431 | |
| 70,919,024 | ||
Computers & Peripherals - 2.4% | |||
Super Micro Computer, Inc. (a) | 1,050,000 | 12,988,500 | |
Synaptics, Inc. (a)(c) | 303,000 | 7,668,930 | |
Wincor Nixdorf AG (c) | 157,400 | 10,618,282 | |
| 31,275,712 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Components - 1.1% | |||
Insight Enterprises, Inc. (a) | 535,000 | $ 6,157,850 | |
SYNNEX Corp. (a) | 290,000 | 7,676,300 | |
| 13,834,150 | ||
Internet Software & Services - 2.8% | |||
Art Technology Group, Inc. (a) | 1,620,652 | 7,260,521 | |
j2 Global Communications, Inc. (a) | 777,500 | 15,969,850 | |
Perficient, Inc. (a) | 432,154 | 4,196,215 | |
TelecityGroup PLC (a) | 1,466,600 | 9,152,191 | |
| 36,578,777 | ||
IT Services - 3.5% | |||
CACI International, Inc. Class A (a) | 179,400 | 8,605,818 | |
Datacash Group PLC | 2,486,200 | 7,925,384 | |
Online Resources Corp. (a)(d) | 1,522,060 | 7,351,550 | |
WNS Holdings Ltd. sponsored ADR (a) | 462,300 | 7,105,551 | |
Wright Express Corp. (a) | 472,000 | 13,857,920 | |
| 44,846,223 | ||
Semiconductors & Semiconductor Equipment - 3.4% | |||
Hittite Microwave Corp. (a) | 243,821 | 9,065,265 | |
Microsemi Corp. (a) | 997,000 | 14,895,180 | |
Teradyne, Inc. (a)(c) | 1,125,000 | 10,507,500 | |
Verigy Ltd. (a) | 865,000 | 9,376,600 | |
| 43,844,545 | ||
Software - 4.3% | |||
Blackbaud, Inc. | 361,059 | 8,051,616 | |
Informatica Corp. (a) | 381,000 | 9,025,890 | |
PROS Holdings, Inc. (a) | 496,135 | 3,944,273 | |
Radiant Systems, Inc. (a) | 820,000 | 9,471,000 | |
Solera Holdings, Inc. | 232,000 | 7,681,520 | |
Taleo Corp. Class A (a) | 431,039 | 8,754,402 | |
TeleCommunication Systems, Inc. Class A (a) | 1,070,000 | 9,373,200 | |
| 56,301,901 | ||
TOTAL INFORMATION TECHNOLOGY | 297,600,332 | ||
MATERIALS - 2.0% | |||
Chemicals - 0.8% | |||
Solutia, Inc. (a) | 717,000 | 9,858,750 | |
Containers & Packaging - 0.5% | |||
Myers Industries, Inc. | 677,500 | 6,192,350 | |
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Metals & Mining - 0.7% | |||
Commercial Metals Co. | 680,000 | $ 9,343,200 | |
TOTAL MATERIALS | 25,394,300 | ||
TELECOMMUNICATION SERVICES - 0.6% | |||
Diversified Telecommunication Services - 0.6% | |||
Premiere Global Services, Inc. (a) | 1,037,000 | 8,378,960 | |
UTILITIES - 0.4% | |||
Independent Power Producers & Energy Traders - 0.4% | |||
Terna Energy SA | 654,345 | 5,281,043 | |
TOTAL COMMON STOCKS (Cost $1,110,817,815) | 1,209,279,132 | ||
Money Market Funds - 12.1% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.17% (e) | 84,582,828 | 84,582,828 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(e) | 72,195,445 | 72,195,445 | |
TOTAL MONEY MARKET FUNDS (Cost $156,778,273) | 156,778,273 | ||
TOTAL INVESTMENT PORTFOLIO - 105.6% (Cost $1,267,596,088) | 1,366,057,405 | ||
NET OTHER ASSETS - (5.6)% | (72,310,540) | ||
NET ASSETS - 100% | $ 1,293,746,865 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated company |
(e) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
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 | $ 73,996 |
Fidelity Securities Lending Cash Central Fund | 109,613 |
Total | $ 183,609 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
Commercial Vehicle Group, Inc. | $ - | $ 6,978,148 | $ - | $ - | $ 6,059,178 |
Online Resources Corp. | 7,502,350 | 2,970,420 | 537,693 | - | 7,351,550 |
Town Sports International Holdings, Inc. | 4,060,850 | 759,596 | 3,156,729 | - | - |
Total | $ 11,563,200 | $ 10,708,164 | $ 3,694,422 | $ - | $ 13,410,728 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 192,691,121 | $ 177,767,029 | $ 14,924,092 | $ - |
Consumer Staples | 20,245,611 | 20,245,611 | - | - |
Energy | 70,999,859 | 65,214,318 | 5,785,541 | - |
Financials | 44,839,507 | 44,839,507 | - | - |
Health Care | 302,051,370 | 278,233,008 | 23,818,362 | - |
Industrials | 241,797,029 | 235,755,528 | 6,041,501 | - |
Information Technology | 297,600,332 | 269,904,475 | 27,695,857 | - |
Materials | 25,394,300 | 25,394,300 | - | - |
Telecommunication Services | 8,378,960 | 8,378,960 | - | - |
Utilities | 5,281,043 | - | 5,281,043 | - |
Money Market Funds | 156,778,273 | 156,778,273 | - | - |
Total Investments in Securities: | $ 1,366,057,405 | $ 1,282,511,009 | $ 83,546,396 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 84.9% |
United Kingdom | 3.0% |
Germany | 2.6% |
Canada | 1.8% |
Netherlands | 1.4% |
Ireland | 1.0% |
Others (individually less than 1%) | 5.3% |
| 100.0% |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $225,666,789 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $200,880,622 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $68,084,615) - See accompanying schedule: Unaffiliated issuers (cost $1,094,844,850) | $ 1,195,868,404 |
|
Fidelity Central Funds (cost $156,778,273) | 156,778,273 |
|
Other affiliated issuers (cost $15,972,965) | 13,410,728 |
|
Total Investments (cost $1,267,596,088) |
| $ 1,366,057,405 |
Receivable for investments sold | 18,354,204 | |
Receivable for fund shares sold | 2,081,611 | |
Dividends receivable | 211,183 | |
Distributions receivable from Fidelity Central Funds | 65,456 | |
Prepaid expenses | 4,772 | |
Receivable from investment adviser for expense reductions | 1,342 | |
Other receivables | 62,782 | |
Total assets | 1,386,838,755 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 18,968,668 | |
Payable for fund shares redeemed | 628,582 | |
Accrued management fee | 873,654 | |
Distribution fees payable | 38,761 | |
Other affiliated payables | 355,664 | |
Other payables and accrued expenses | 31,116 | |
Collateral on securities loaned, at value | 72,195,445 | |
Total liabilities | 93,091,890 | |
|
|
|
Net Assets | $ 1,293,746,865 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,503,833,560 | |
Accumulated net investment loss | (2,416,380) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (306,122,443) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 98,452,128 | |
Net Assets | $ 1,293,746,865 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 11.92 | |
|
|
|
Maximum offering price per share (100/94.25 of $11.92) | $ 12.65 | |
Class T: | $ 11.85 | |
|
|
|
Maximum offering price per share (100/96.50 of $11.85) | $ 12.28 | |
Class B: | $ 11.63 | |
|
|
|
Class C: | $ 11.61 | |
|
|
|
|
|
|
Small Cap Growth: | $ 12.04 | |
|
|
|
Class F: | $ 12.07 | |
|
|
|
Institutional Class: | $ 12.06 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 3,038,581 |
Special dividends |
| 1,670,000 |
Interest |
| 66 |
Income from Fidelity Central Funds |
| 183,609 |
Total income |
| 4,892,256 |
|
|
|
Expenses | ||
Management fee | $ 4,521,965 | |
Performance adjustment | 391,638 | |
Transfer agent fees | 1,920,466 | |
Distribution fees | 218,228 | |
Accounting and security lending fees | 237,439 | |
Custodian fees and expenses | 25,292 | |
Independent trustees' compensation | 3,736 | |
Registration fees | 72,280 | |
Audit | 29,339 | |
Legal | 4,307 | |
Miscellaneous | 10,541 | |
Total expenses before reductions | 7,435,231 | |
Expense reductions | (126,595) | 7,308,636 |
Net investment income (loss) | (2,416,380) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 138,282,411 | |
Other affiliated issuers | (2,158,131) |
|
Foreign currency transactions | (25,884) | |
Capital gains distributions from Fidelity Central Funds | 2,501 | |
Total net realized gain (loss) |
| 136,100,897 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (10,689,555) | |
Assets and liabilities in foreign currencies | (9,741) | |
Total change in net unrealized appreciation (depreciation) |
| (10,699,296) |
Net gain (loss) | 125,401,601 | |
Net increase (decrease) in net assets resulting from operations | $ 122,985,221 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (2,416,380) | $ (4,212,561) |
Net realized gain (loss) | 136,100,897 | (335,295,985) |
Change in net unrealized appreciation (depreciation) | (10,699,296) | 109,380,680 |
Net increase (decrease) in net assets resulting | 122,985,221 | (230,127,866) |
Share transactions - net increase (decrease) | (14,066,912) | 89,233,558 |
Redemption fees | 99,319 | 255,734 |
Total increase (decrease) in net assets | 109,017,628 | (140,638,574) |
|
|
|
Net Assets | ||
Beginning of period | 1,184,729,237 | 1,325,367,811 |
End of period (including accumulated net investment loss of $2,416,380 and $0, respectively) | $ 1,293,746,865 | $ 1,184,729,237 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 K | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.79 | $ 13.20 | $ 16.06 | $ 12.88 | $ 12.95 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.04) H | (.06) | (.11) | (.12) I | (.10) J | (.07) |
Net realized and unrealized gain (loss) | 1.17 | (2.35) | (1.73) | 3.39 | .18 | 3.01 |
Total from investment operations | 1.13 | (2.41) | (1.84) | 3.27 | .08 | 2.94 |
Distributions from net realized gain | - | - | (1.02) | (.09) | (.16) | - |
Redemption fees added to paid in capital E | - M | - M | - M | - M | .01 | .01 |
Net asset value, end of period | $ 11.92 | $ 10.79 | $ 13.20 | $ 16.06 | $ 12.88 | $ 12.95 |
Total Return B, C, D | 10.47% | (18.26)% | (12.26)% | 25.52% | .70% | 29.50% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 1.42% A | 1.33% | 1.40% | 1.44% | 1.53% | 1.55% A |
Expenses net of fee waivers, if any | 1.40% A | 1.33% | 1.40% | 1.40% | 1.40% | 1.45% A |
Expenses net of all reductions | 1.38% A | 1.33% | 1.39% | 1.39% | 1.35% | 1.36% A |
Net investment income (loss) | (.61)% A, H | (.64)% | (.74)% | (.80)% I | (.79)% J | (.78)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 43,630 | $ 40,211 | $ 42,187 | $ 33,588 | $ 18,104 | $ 4,719 |
Portfolio turnover rate G | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.88)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.84)%. J Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.85)%. K For the period November 3, 2004 (commencement of operations) to July 31, 2005. L Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. M Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 K | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.74 | $ 13.17 | $ 16.01 | $ 12.86 | $ 12.93 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.05) H | (.09) | (.15) | (.16) I | (.14) J | (.09) |
Net realized and unrealized gain (loss) | 1.16 | (2.34) | (1.73) | 3.38 | .19 | 3.01 |
Total from investment operations | 1.11 | (2.43) | (1.88) | 3.22 | .05 | 2.92 |
Distributions from net realized gain | - | - | (.96) | (.07) | (.13) | - |
Redemption fees added to paid in capital E | - M | - M | - M | - M | .01 | .01 |
Net asset value, end of period | $ 11.85 | $ 10.74 | $ 13.17 | $ 16.01 | $ 12.86 | $ 12.93 |
Total Return B, C, D | 10.34% | (18.45)% | (12.50)% | 25.18% | .48% | 29.30% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 1.68% A | 1.60% | 1.65% | 1.67% | 1.73% | 1.79% A |
Expenses net of fee waivers, if any | 1.65% A | 1.60% | 1.65% | 1.65% | 1.65% | 1.70% A |
Expenses net of all reductions | 1.63% A | 1.59% | 1.65% | 1.65% | 1.60% | 1.61% A |
Net investment income (loss) | (.86)% A, H | (.91)% | (.99)% | (1.05)% I | (1.04)% J | (1.03)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 22,452 | $ 21,533 | $ 21,754 | $ 26,419 | $ 19,205 | $ 5,240 |
Portfolio turnover rate G | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.13)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.09)%. J Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.10)%. K For the period November 3, 2004 (commencement of operations) to July 31, 2005. L Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. M Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 K | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.57 | $ 13.03 | $ 15.85 | $ 12.78 | $ 12.87 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.08) H | (.13) | (.22) | (.23) I | (.20) J | (.13) |
Net realized and unrealized gain (loss) | 1.14 | (2.33) | (1.71) | 3.36 | .19 | 2.99 |
Total from investment operations | 1.06 | (2.46) | (1.93) | 3.13 | (.01) | 2.86 |
Distributions from net realized gain | - | - | (.89) | (.06) | (.09) | - |
Redemption fees added to paid in capital E | - M | - M | - M | - M | .01 | .01 |
Net asset value, end of period | $ 11.63 | $ 10.57 | $ 13.03 | $ 15.85 | $ 12.78 | $ 12.87 |
Total Return B, C, D | 10.03% | (18.88)% | (12.92)% | 24.57% | (.03)% | 28.70% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 2.18% A | 2.08% | 2.15% | 2.20% | 2.28% | 2.33% A |
Expenses net of fee waivers, if any | 2.15% A | 2.08% | 2.15% | 2.15% | 2.15% | 2.20% A |
Expenses net of all reductions | 2.13% A | 2.08% | 2.15% | 2.15% | 2.10% | 2.11% A |
Net investment income (loss) | (1.36)% A, H | (1.39)% | (1.49)% | (1.55)% I | (1.54)% J | (1.53)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 4,792 | $ 4,171 | $ 5,517 | $ 6,242 | $ 5,191 | $ 2,055 |
Portfolio turnover rate G | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.63)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.59)%. J Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.60)%. K For the period Novem-ber 3, 2004 (commencement of operations) to July 31, 2005. L Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. M Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 K | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.55 | $ 13.00 | $ 15.84 | $ 12.77 | $ 12.88 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.08) H | (.13) | (.22) | (.23) I | (.20) J | (.13) |
Net realized and unrealized gain (loss) | 1.14 | (2.32) | (1.71) | 3.36 | .18 | 3.00 |
Total from investment operations | 1.06 | (2.45) | (1.93) | 3.13 | (.02) | 2.87 |
Distributions from net realized gain | - | - | (.91) | (.06) | (.10) | - |
Redemption fees added to paid in capital E | - M | - M | - M | - M | .01 | .01 |
Net asset value, end of period | $ 11.61 | $ 10.55 | $ 13.00 | $ 15.84 | $ 12.77 | $ 12.88 |
Total Return B, C, D | 10.05% | (18.85)% | (12.94)% | 24.59% | (.08)% | 28.80% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 2.18% A | 2.08% | 2.15% | 2.20% | 2.25% | 2.24% A |
Expenses net of fee waivers, if any | 2.15% A | 2.08% | 2.15% | 2.15% | 2.15% | 2.17% A |
Expenses net of all reductions | 2.13% A | 2.07% | 2.14% | 2.14% | 2.10% | 2.09% A |
Net investment income (loss) | (1.36)% A, H | (1.39)% | (1.49)% | (1.55)% I | (1.54)% J | (1.50)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 16,380 | $ 14,267 | $ 15,946 | $ 22,348 | $ 14,682 | $ 8,372 |
Portfolio turnover rate G | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.63)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.59)%. J Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.60)%. K For the period Novem-ber 3, 2004 (commencement of operations) to July 31, 2005. L Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. M Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Growth
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 J | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.89 | $ 13.29 | $ 16.15 | $ 12.93 | $ 12.98 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | (.02) G | (.04) | (.07) | (.08) H | (.07) I | (.04) |
Net realized and unrealized gain (loss) | 1.17 | (2.36) | (1.74) | 3.40 | .19 | 3.01 |
Total from investment operations | 1.15 | (2.40) | (1.81) | 3.32 | .12 | 2.97 |
Distributions from net realized gain | - | - | (1.05) | (.10) | (.18) | - |
Redemption fees added to paid in capital D | - L | - L | - L | - L | .01 | .01 |
Net asset value, end of period | $ 12.04 | $ 10.89 | $ 13.29 | $ 16.15 | $ 12.93 | $ 12.98 |
Total Return B, C | 10.56% | (18.06)% | (11.98)% | 25.84% | 1.01% | 29.80% |
Ratios to Average Net Assets E, K |
|
|
|
|
| |
Expenses before reductions | 1.13% A | 1.08% | 1.11% | 1.10% | 1.13% | 1.16% A |
Expenses net of fee waivers, if any | 1.13% A | 1.08% | 1.11% | 1.10% | 1.13% | 1.16% A |
Expenses net of all reductions | 1.12% A | 1.08% | 1.10% | 1.09% | 1.08% | 1.08% A |
Net investment income (loss) | (.35)% A, G | (.39)% | (.45)% | (.50)% H | (.52)% I | (.49)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 1,144,530 | $ 1,085,184 | $ 1,217,520 | $ 1,149,809 | $ 402,353 | $ 205,652 |
Portfolio turnover rate F | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.61)%. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.54)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.58)%. J For the period November 3, 2004 (commencement of operations) to July 31, 2005. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended | Years ended |
(Unaudited) | 2009 I | |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 10.90 | $ 10.03 |
Income from Investment Operations |
|
|
Net investment income (loss) D | - G, K | (.01) |
Net realized and unrealized gain (loss) | 1.17 | .88 H |
Total from investment operations | 1.17 | .87 |
Redemption fee added to paid in capital D, K | - | - |
Net asset value, end of period | $ 12.07 | $ 10.90 |
Total Return B, C | 10.73% | 8.67% |
Ratios to Average Net Assets E, J |
|
|
Expenses before reductions | .83% A | .74% A |
Expenses net of fee waivers, if any | .83% A | .74% A |
Expenses net of all reductions | .81% A | .73% A |
Net investment income (loss) | (.05)% A, G | (.54)% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 42,754 | $ 159 |
Portfolio turnover rate F | 108% A | 150% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.31)%. H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 J | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.91 | $ 13.30 | $ 16.15 | $ 12.92 | $ 12.97 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | (.02) G | (.03) | (.06) | (.07) H | (.07) I | (.04) |
Net realized and unrealized gain (loss) | 1.17 | (2.36) | (1.74) | 3.41 | .19 | 3.00 |
Total from investment operations | 1.15 | (2.39) | (1.80) | 3.34 | .12 | 2.96 |
Distributions from net realized gain | - | - | (1.05) | (.11) | (.18) | - |
Redemption fees added to paid in capital D | - L | - L | - L | - L | .01 | .01 |
Net asset value, end of period | $ 12.06 | $ 10.91 | $ 13.30 | $ 16.15 | $ 12.92 | $ 12.97 |
Total Return B, C | 10.54% | (17.97)% | (11.93)% | 25.99% | .97% | 29.70% |
Ratios to Average Net Assets E, K |
|
|
|
|
| |
Expenses before reductions | 1.08% A | 1.05% | 1.04% | 1.05% | 1.10% | 1.20% A |
Expenses net of fee waivers, if any | 1.08% A | 1.05% | 1.04% | 1.05% | 1.10% | 1.18% A |
Expenses net of all reductions | 1.06% A | 1.04% | 1.03% | 1.05% | 1.05% | 1.10% A |
Net investment income (loss) | (.29)% A, G | (.36)% | (.38)% | (.46)% H | (.49)% I | (.51)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 19,210 | $ 19,204 | $ 22,444 | $ 18,671 | $ 14,233 | $ 1,906 |
Portfolio turnover rate F | 108% A | 150% | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.56)%. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.50)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.55)%. J For the period November 3, 2004 (commencement of operations) to July 31, 2005. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
1. Organization.
Fidelity Small Cap Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, Small Cap Growth, Class F and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 157,248,032 |
|
Gross unrealized depreciation | (65,671,189) |
|
Net unrealized appreciation (depreciation) | $ 91,576,843 |
|
|
|
|
Tax cost | $ 1,274,480,562 |
|
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All
Semiannual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees - continued
redemption fees, including any estimated redemption fees paid by FMR, 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 $643,292,838 and $692,876,646, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class of the Fund, Small Cap Growth, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .77% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution | Service | Paid to | Retained |
Class A | -% | .25% | $ 55,419 | $ 1,955 |
Class T | .25% | .25% | 57,870 | - |
Class B | .75% | .25% | 23,116 | 17,337 |
Class C | .75% | .25% | 81,823 | 16,035 |
|
|
| $ 218,228 | $ 35,327 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 14,451 |
Class T | 3,032 |
Class B* | 2,716 |
Class C* | 661 |
| $ 20,860 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of each class, except for Class F. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Class A | $ 74,570 | .34 |
Class T | 39,990 | .35 |
Class B | 7,941 | .34 |
Class C | 28,157 | .34 |
Small Cap Growth | 1,745,899 | .30 |
Institutional Class | 23,909 | .25 |
| $ 1,920,466 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $10,819 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,453 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $109,613.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | 1.40% | $ 4,040 |
Class T | 1.65% | 3,237 |
Class B | 2.15% | 654 |
Class C | 2.15% | 2,325 |
|
| $ 10,256 |
* Expense limitation in effect at period end.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $116,328 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $11.
Semiannual Report
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 876,829 | 1,768,538 | $ 10,246,640 | $ 16,919,128 |
Shares redeemed | (941,525) | (1,239,291) | (10,924,770) | (11,138,983) |
Net increase (decrease) | (64,696) | 529,247 | $ (678,130) | $ 5,780,145 |
Class T |
|
|
|
|
Shares sold | 255,929 | 1,485,602 | $ 2,983,172 | $ 12,842,623 |
Shares redeemed | (365,247) | (1,132,759) | (4,294,949) | (9,596,209) |
Net increase (decrease) | (109,318) | 352,843 | $ (1,311,777) | $ 3,246,414 |
Class B |
|
|
|
|
Shares sold | 61,930 | 116,072 | $ 708,187 | $ 1,042,949 |
Shares redeemed | (44,439) | (145,097) | (504,946) | (1,355,668) |
Net increase (decrease) | 17,491 | (29,025) | $ 203,241 | $ (312,719) |
Class C |
|
|
|
|
Shares sold | 248,890 | 604,934 | $ 2,842,168 | $ 5,793,290 |
Shares redeemed | (189,884) | (479,386) | (2,227,980) | (4,290,700) |
Net increase (decrease) | 59,006 | 125,548 | $ 614,188 | $ 1,502,590 |
Small Cap Growth |
|
|
|
|
Shares sold | 11,154,403 | 30,718,046 | $ 132,014,131 | $ 287,281,815 |
Shares redeemed | (15,746,553) | (22,726,319) | (185,597,494) | (209,407,815) |
Net increase (decrease) | (4,592,150) | 7,991,727 | $ (53,583,363) | $ 77,874,000 |
Class F |
|
|
|
|
Shares sold | 3,612,384 | 14,590 | $ 43,584,992 | $ 145,457 |
Shares redeemed | (84,190) | (12) | (1,022,050) | (113) |
Net increase (decrease) | 3,528,194 | 14,578 | $ 42,562,942 | $ 145,344 |
Institutional Class |
|
|
|
|
Shares sold | 475,265 | 802,152 | $ 5,668,140 | $ 7,245,594 |
Shares redeemed | (643,442) | (728,847) | (7,542,153) | (6,247,810) |
Net increase (decrease) | (168,177) | 73,305 | $ (1,874,013) | $ 997,784 |
A Share transactions for Class F are for the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Other - continued
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, Fidelity Freedom 2020 Fund and Fidelity Freedom 2030 Fund were the owners of record of approximately 12% and 10% of the total outstanding shares of the Fund. The Fidelity Freedom Funds were the owners of record, in the aggregate, of approximately 51% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
FIL Investments (Japan) Limited
FIL Investment Advisors
FIL Investment Advisors (U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
ASCPI-USAN-0310 1.803724.106
Fidelity®
Small Cap Value
Fund
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,131.40 | $ 7.52 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,129.80 | $ 8.86 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,126.80 | $ 11.53 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,126.70 | $ 11.52 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Small Cap Value | 1.21% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,131.80 | $ 6.50 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.11 | $ 6.16 |
Class F | .91% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,133.60 | $ 4.89 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.62 | $ 4.63 |
Institutional Class | 1.14% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,132.00 | $ 6.13 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.46 | $ 5.80 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Astoria Financial Corp. | 3.4 | 2.8 |
RTI International Metals, Inc. | 3.3 | 0.0 |
Carpenter Technology Corp. | 3.0 | 3.0 |
WESCO International, Inc. | 3.0 | 2.9 |
United Stationers, Inc. | 2.9 | 3.0 |
Alexandria Real Estate Equities, Inc. | 2.8 | 2.6 |
Platinum Underwriters Holdings Ltd. | 2.8 | 0.0 |
Washington Federal, Inc. | 2.7 | 1.7 |
Superior Energy Services, Inc. | 2.7 | 2.0 |
HNI Corp. | 2.6 | 3.0 |
| 29.2 | |
Top Five Market Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Financials | 35.7 | 33.4 |
Industrials | 13.5 | 15.9 |
Consumer Discretionary | 11.3 | 12.6 |
Information Technology | 9.9 | 11.6 |
Materials | 7.0 | 4.8 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks 99.5% |
| ![]() | Stocks 98.8% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 9.6% |
| ** Foreign investments | 8.1% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.3% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 10.6% | |||
Diversified Consumer Services - 2.7% | |||
Matthews International Corp. Class A | 590,187 | $ 19,977,830 | |
Regis Corp. (c) | 1,745,882 | 27,811,900 | |
| 47,789,730 | ||
Household Durables - 5.2% | |||
M.D.C. Holdings, Inc. | 960,300 | 32,266,080 | |
Meritage Homes Corp. (a) | 1,509,960 | 33,808,004 | |
Ryland Group, Inc. | 1,262,448 | 28,102,092 | |
| 94,176,176 | ||
Specialty Retail - 1.8% | |||
Asbury Automotive Group, Inc. (a) | 1,455,159 | 16,108,610 | |
Tsutsumi Jewelry Co. Ltd. | 791,400 | 15,096,829 | |
| 31,205,439 | ||
Textiles, Apparel & Luxury Goods - 0.9% | |||
Iconix Brand Group, Inc. (a) | 1,330,087 | 16,785,698 | |
TOTAL CONSUMER DISCRETIONARY | 189,957,043 | ||
CONSUMER STAPLES - 5.2% | |||
Food & Staples Retailing - 5.2% | |||
BJ's Wholesale Club, Inc. (a) | 1,290,000 | 43,589,100 | |
Casey's General Stores, Inc. | 1,235,183 | 37,895,414 | |
Ingles Markets, Inc. Class A | 838,531 | 11,873,599 | |
| 93,358,113 | ||
ENERGY - 4.4% | |||
Energy Equipment & Services - 2.7% | |||
Superior Energy Services, Inc. (a) | 2,091,700 | 48,046,349 | |
Oil, Gas & Consumable Fuels - 1.7% | |||
Mariner Energy, Inc. (a) | 2,166,954 | 31,312,485 | |
TOTAL ENERGY | 79,358,834 | ||
FINANCIALS - 34.2% | |||
Capital Markets - 3.5% | |||
optionsXpress Holdings, Inc. | 1,955,000 | 28,054,250 | |
Sparx Group Co. Ltd. (a) | 1,940 | 253,595 | |
TradeStation Group, Inc. (a) | 2,062,291 | 14,580,397 | |
Waddell & Reed Financial, Inc. Class A | 640,000 | 20,051,200 | |
| 62,939,442 | ||
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Commercial Banks - 10.7% | |||
Associated Banc-Corp. (c) | 2,692,383 | $ 34,247,112 | |
CapitalSource, Inc. | 6,395,000 | 30,632,050 | |
City National Corp. (c) | 784,900 | 38,766,211 | |
PacWest Bancorp (c) | 1,625,000 | 33,718,750 | |
TCF Financial Corp. (c) | 2,705,500 | 39,608,520 | |
Western Liberty Bancorp (a)(d) | 2,400,000 | 15,072,000 | |
| 192,044,643 | ||
Insurance - 6.5% | |||
Aspen Insurance Holdings Ltd. | 870,200 | 23,173,426 | |
Max Capital Group Ltd. | 1,957,411 | 44,080,896 | |
Platinum Underwriters Holdings Ltd. | 1,396,975 | 50,654,314 | |
| 117,908,636 | ||
Real Estate Investment Trusts - 4.9% | |||
Alexandria Real Estate Equities, Inc. (c) | 848,300 | 50,668,959 | |
Highwoods Properties, Inc. (SBI) | 670,330 | 20,250,669 | |
National Retail Properties, Inc. | 840,000 | 16,968,000 | |
| 87,887,628 | ||
Real Estate Management & Development - 2.5% | |||
Jones Lang LaSalle, Inc. | 791,000 | 45,094,910 | |
Thrifts & Mortgage Finance - 6.1% | |||
Astoria Financial Corp. | 4,618,152 | 60,959,607 | |
Washington Federal, Inc. | 2,616,175 | 48,791,664 | |
| 109,751,271 | ||
TOTAL FINANCIALS | 615,626,530 | ||
HEALTH CARE - 6.7% | |||
Health Care Providers & Services - 6.7% | |||
Chemed Corp. | 510,200 | 23,724,300 | |
MEDNAX, Inc. (a) | 591,500 | 33,632,690 | |
Providence Service Corp. (a)(d) | 1,016,495 | 13,051,796 | |
Team Health Holdings, Inc. | 1,300,000 | 19,175,000 | |
VCA Antech, Inc. (a) | 1,240,000 | 31,483,600 | |
| 121,067,386 | ||
INDUSTRIALS - 13.5% | |||
Commercial Services & Supplies - 6.0% | |||
ACCO Brands Corp. (a) | 1,250,923 | 9,632,107 | |
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Commercial Services & Supplies - continued | |||
HNI Corp. (c) | 1,899,671 | $ 47,529,768 | |
United Stationers, Inc. (a) | 939,000 | 51,231,840 | |
| 108,393,715 | ||
Machinery - 2.5% | |||
Blount International, Inc. (a) | 1,854,723 | 20,661,614 | |
Graco, Inc. | 865,000 | 23,086,850 | |
| 43,748,464 | ||
Trading Companies & Distributors - 5.0% | |||
H&E Equipment Services, Inc. (a)(d) | 3,489,408 | 37,022,619 | |
WESCO International, Inc. (a) | 1,925,000 | 53,361,000 | |
| 90,383,619 | ||
TOTAL INDUSTRIALS | 242,525,798 | ||
INFORMATION TECHNOLOGY - 9.9% | |||
Communications Equipment - 2.4% | |||
Polycom, Inc. (a) | 970,000 | 21,757,100 | |
ViaSat, Inc. (a) | 809,472 | 22,122,870 | |
| 43,879,970 | ||
Electronic Equipment & Components - 3.3% | |||
Ingram Micro, Inc. Class A (a) | 1,503,100 | 25,402,390 | |
Macnica, Inc. | 677,400 | 11,233,718 | |
Ryoyo Electro Corp. | 1,272,700 | 10,813,790 | |
SYNNEX Corp. (a) | 409,898 | 10,850,000 | |
| 58,299,898 | ||
Internet Software & Services - 2.4% | |||
DealerTrack Holdings, Inc. (a) | 1,749,434 | 31,437,329 | |
j2 Global Communications, Inc. (a) | 603,149 | 12,388,680 | |
| 43,826,009 | ||
Semiconductors & Semiconductor Equipment - 0.9% | |||
Miraial Co. Ltd. (d) | 570,200 | 15,317,768 | |
Software - 0.9% | |||
MICROS Systems, Inc. (a) | 580,000 | 16,576,400 | |
TOTAL INFORMATION TECHNOLOGY | 177,900,045 | ||
MATERIALS - 7.0% | |||
Chemicals - 0.7% | |||
Spartech Corp. | 1,361,202 | 13,734,528 | |
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Metals & Mining - 6.3% | |||
Carpenter Technology Corp. | 2,009,380 | $ 53,851,384 | |
RTI International Metals, Inc. (a)(d) | 2,392,597 | 59,216,776 | |
| 113,068,160 | ||
TOTAL MATERIALS | 126,802,688 | ||
TELECOMMUNICATION SERVICES - 1.0% | |||
Diversified Telecommunication Services - 1.0% | |||
Cogent Communications Group, Inc. (a) | 1,665,000 | 18,181,800 | |
UTILITIES - 4.8% | |||
Electric Utilities - 2.0% | |||
Westar Energy, Inc. | 1,710,000 | 36,474,300 | |
Gas Utilities - 1.3% | |||
Southwest Gas Corp. | 830,989 | 22,993,466 | |
Independent Power Producers & Energy Traders - 1.5% | |||
RRI Energy, Inc. (a) | 5,600,000 | 27,720,000 | |
TOTAL UTILITIES | 87,187,766 | ||
TOTAL COMMON STOCKS (Cost $1,594,125,230) | 1,751,966,003 | ||
Nonconvertible Preferred Stocks - 2.2% | |||
|
|
|
|
CONSUMER DISCRETIONARY - 0.7% | |||
Household Durables - 0.7% | |||
M/I Homes, Inc. Series A, 9.75% (a) | 730,800 | 11,510,100 | |
FINANCIALS - 1.5% | |||
Real Estate Investment Trusts - 1.5% | |||
Developers Diversified Realty Corp.: | |||
(depositary shares) Series H, 7.375% | 818,790 | 16,334,861 | |
Series I, 7.50% | 542,010 | 10,867,301 | |
| 27,202,162 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $25,252,713) | 38,712,262 | ||
Money Market Funds - 8.2% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.17% (e) | 15,158,848 | $ 15,158,848 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(e) | 132,323,494 | 132,323,494 | |
TOTAL MONEY MARKET FUNDS (Cost $147,482,342) | 147,482,342 | ||
TOTAL INVESTMENT PORTFOLIO - 107.7% (Cost $1,766,860,285) | 1,938,160,607 | ||
NET OTHER ASSETS - (7.7)% | (137,753,096) | ||
NET ASSETS - 100% | $ 1,800,407,511 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated company |
(e) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
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 | $ 21,352 |
Fidelity Securities Lending Cash Central Fund | 197,720 |
Total | $ 219,072 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliates | Value, | Purchases | Sales | Dividend | Value, |
Carpenter Technology Corp. | $ 48,582,409 | $ - | $ 14,222,750 | $ 1,279,465 | $ - |
H&E Equipment Services, Inc. | 17,823,149 | 19,092,190 | - | - | 37,022,619 |
HNI Corp. | 48,476,178 | 4,669,921 | 12,525,138 | 939,645 | - |
Miraial Co. Ltd. | 11,951,237 | - | - | 177,482 | 15,317,768 |
Providence Service Corp. | 5,488,479 | 7,744,742 | - | - | 13,051,796 |
RTI International Metals, Inc. | - | 61,889,471 | 4,810,113 | - | 59,216,776 |
Spartech Corp. | 19,788,775 | 80,848 | 2,807,218 | - | - |
WESCO International, Inc. | 45,676,500 | 7,269,797 | 5,877,924 | - | - |
Western Liberty Bancorp | - | 3,630,400 | - | - | 15,072,000 |
Total | $ 197,786,727 | $ 104,377,369 | $ 40,243,143 | $ 2,396,592 | $ 139,680,959 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $19,890,497 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $151,920,436 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $127,885,454) - See accompanying schedule: Unaffiliated issuers (cost $1,484,926,892) | $ 1,650,997,306 |
|
Fidelity Central Funds (cost $147,482,342) | 147,482,342 |
|
Other affiliated issuers (cost $134,451,051) | 139,680,959 |
|
Total Investments (cost $1,766,860,285) |
| $ 1,938,160,607 |
Receivable for investments sold | 236,239 | |
Receivable for fund shares sold | 3,708,433 | |
Dividends receivable | 1,650,419 | |
Distributions receivable from Fidelity Central Funds | 16,535 | |
Prepaid expenses | 6,715 | |
Receivable from investment adviser for expense reductions | 13,238 | |
Other receivables | 20,459 | |
Total assets | 1,943,812,645 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 6,760,361 | |
Payable for fund shares redeemed | 2,445,680 | |
Accrued management fee | 1,317,855 | |
Distribution fees payable | 60,169 | |
Other affiliated payables | 466,365 | |
Other payables and accrued expenses | 31,210 | |
Collateral on securities loaned, at value | 132,323,494 | |
Total liabilities | 143,405,134 | |
|
|
|
Net Assets | $ 1,800,407,511 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,720,209,220 | |
Undistributed net investment income | 152,847 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (91,252,062) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 171,297,506 | |
Net Assets | $ 1,800,407,511 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 12.56 | |
|
|
|
Maximum offering price per share (100/94.25 of $12.56) | $ 13.33 | |
Class T: | $ 12.47 | |
|
|
|
Maximum offering price per share (100/96.50 of $12.47) | $ 12.92 | |
Class B: | $ 12.26 | |
|
|
|
Class C: | $ 12.27 | |
|
|
|
|
|
|
Small Cap Value: | $ 12.65 | |
|
|
|
Class F: | $ 12.65 | |
|
|
|
Institutional Class: | $ 12.66 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends (including $2,396,592 earned from other affiliated issuers) |
| $ 12,500,182 |
Interest |
| 18,036 |
Income from Fidelity Central Funds |
| 219,072 |
Total income |
| 12,737,290 |
|
|
|
Expenses | ||
Management fee | $ 6,386,783 | |
Performance adjustment | 1,325,098 | |
Transfer agent fees | 2,640,316 | |
Distribution fees | 327,688 | |
Accounting and security lending fees | 322,062 | |
Custodian fees and expenses | 22,075 | |
Independent trustees' compensation | 5,217 | |
Registration fees | 103,021 | |
Audit | 30,165 | |
Legal | 5,603 | |
Interest | 635 | |
Miscellaneous | 13,458 | |
Total expenses before reductions | 11,182,121 | |
Expense reductions | (98,216) | 11,083,905 |
Net investment income (loss) | 1,653,385 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 85,630,649 | |
Other affiliated issuers | 3,071,265 |
|
Foreign currency transactions | 19,631 | |
Capital gain distributions from Fidelity Central Funds | 9,755 | |
Total net realized gain (loss) |
| 88,731,300 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 119,319,234 | |
Assets and liabilities in foreign currencies | (3,940) | |
Total change in net unrealized appreciation (depreciation) |
| 119,315,294 |
Net gain (loss) | 208,046,594 | |
Net increase (decrease) in net assets resulting from operations | $ 209,699,979 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 1,653,385 | $ 11,185,799 |
Net realized gain (loss) | 88,731,300 | (175,985,663) |
Change in net unrealized appreciation (depreciation) | 119,315,294 | 144,791,983 |
Net increase (decrease) in net assets resulting | 209,699,979 | (20,007,881) |
Distributions to shareholders from net investment income | (6,560,120) | (8,301,273) |
Distributions to shareholders from net realized gain | - | (12,095,172) |
Total distributions | (6,560,120) | (20,396,445) |
Share transactions - net increase (decrease) | (14,302,253) | 392,456,300 |
Redemption fees | 278,381 | 448,503 |
Total increase (decrease) in net assets | 189,115,987 | 352,500,477 |
|
|
|
Net Assets | ||
Beginning of period | 1,611,291,524 | 1,258,791,047 |
End of period (including undistributed net investment income of $152,847 and undistributed net investment income of $5,059,582, respectively) | $ 1,800,407,511 | $ 1,611,291,524 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 H | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 11.13 | $ 11.82 | $ 14.34 | $ 13.17 | $ 12.80 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | - J | .08 | (.01) | (.06) | (.03) | (.04) |
Net realized and unrealized gain (loss) | 1.46 | (.60) | (1.98) | 1.90 | .74 | 2.84 |
Total from investment operations | 1.46 | (.52) | (1.99) | 1.84 | .71 | 2.80 |
Distributions from net investment income | (.03) | (.06) | - | - | - | (.01) |
Distributions from net realized gain | - | (.11) | (.53) | (.67) | (.35) | - |
Total distributions | (.03) | (.17) | (.53) | (.67) | (.35) | (.01) |
Redemption fees added to paid in capital E | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 12.56 | $ 11.13 | $ 11.82 | $ 14.34 | $ 13.17 | $ 12.80 |
Total Return B, C, D | 13.14% | (4.37)% | (14.35)% | 14.59% | 5.72% | 28.06% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.51% A | 1.45% | 1.43% | 1.45% | 1.51% | 1.46% A |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% | 1.40% | 1.40% | 1.44% A |
Expenses net of all reductions | 1.40% A | 1.40% | 1.40% | 1.40% | 1.36% | 1.38% A |
Net investment income (loss) | .02% A | .81% | (.05)% | (.44)% | (.24)% | (.46)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 71,120 | $ 55,029 | $ 52,446 | $ 61,357 | $ 39,931 | $ 9,390 |
Portfolio turnover rate G | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period November 3, 2004 (commencement of operations) to July 31, 2005. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 H | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 11.05 | $ 11.74 | $ 14.28 | $ 13.13 | $ 12.78 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.01) | .05 | (.04) | (.10) | (.07) | (.06) |
Net realized and unrealized gain (loss) | 1.44 | (.59) | (1.97) | 1.90 | .74 | 2.83 |
Total from investment operations | 1.43 | (.54) | (2.01) | 1.80 | .67 | 2.77 |
Distributions from net investment income | (.01) | (.04) | - | - | - | - |
Distributions from net realized gain | - | (.11) | (.53) | (.65) | (.33) | - |
Total distributions | (.01) | (.15) | (.53) | (.65) | (.33) | - |
Redemption fees added to paid in capital E | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 12.47 | $ 11.05 | $ 11.74 | $ 14.28 | $ 13.13 | $ 12.78 |
Total Return B, C, D | 12.98% | (4.57)% | (14.58)% | 14.34% | 5.47% | 27.80% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.76% A | 1.70% | 1.68% | 1.66% | 1.67% | 1.72% A |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.65% | 1.68% A |
Expenses net of all reductions | 1.65% A | 1.65% | 1.65% | 1.65% | 1.61% | 1.62% A |
Net investment income (loss) | (.23)% A | .56% | (.30)% | (.69)% | (.49)% | (.70)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 33,795 | $ 28,534 | $ 32,091 | $ 51,518 | $ 45,460 | $ 12,725 |
Portfolio turnover rate G | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period November 3, 2004 (commencement of operations) to July 31, 2005. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 H | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.88 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.73 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.04) | .01 | (.10) | (.17) | (.13) | (.10) |
Net realized and unrealized gain (loss) | 1.42 | (.59) | (1.96) | 1.90 | .74 | 2.82 |
Total from investment operations | 1.38 | (.58) | (2.06) | 1.73 | .61 | 2.72 |
Distributions from net investment income | - | (.03) | - | - | - | - |
Distributions from net realized gain | - | (.11) | (.53) | (.61) | (.28) | - |
Total distributions | - | (.14) | (.53) | (.61) | (.28) | - |
Redemption fees added to paid in capital E | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 12.26 | $ 10.88 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.73 |
Total Return B, C, D | 12.68% | (5.05)% | (15.04)% | 13.78% | 4.97% | 27.30% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 2.26% A | 2.20% | 2.18% | 2.20% | 2.26% | 2.24% A |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.19% A |
Expenses net of all reductions | 2.15% A | 2.15% | 2.15% | 2.15% | 2.11% | 2.13% A |
Net investment income (loss) | (.73)% A | .06% | (.80)% | (1.19)% | (.99)% | (1.21)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 8,246 | $ 7,153 | $ 7,886 | $ 12,075 | $ 10,214 | $ 3,931 |
Portfolio turnover rate G | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period November 3, 2004 (commencement of operations) to July 31, 2005. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 H | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.89 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.74 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.04) | .01 | (.10) | (.17) | (.13) | (.10) |
Net realized and unrealized gain (loss) | 1.42 | (.58) | (1.96) | 1.90 | .74 | 2.83 |
Total from investment operations | 1.38 | (.57) | (2.06) | 1.73 | .61 | 2.73 |
Distributions from net investment income | - | (.03) | - | - | - | - |
Distributions from net realized gain | - | (.11) | (.53) | (.61) | (.29) | - |
Total distributions | - | (.14) | (.53) | (.61) | (.29) | - |
Redemption fees added to paid in capital E | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 12.27 | $ 10.89 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.74 |
Total Return B, C, D | 12.67% | (4.98)% | (15.04)% | 13.77% | 4.92% | 27.40% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 2.26% A | 2.20% | 2.18% | 2.20% | 2.22% | 2.17% A |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.17% A |
Expenses net of all reductions | 2.14% A | 2.15% | 2.15% | 2.15% | 2.11% | 2.11% A |
Net investment income (loss) | (.73)% A | .06% | (.80)% | (1.19)% | (.99)% | (1.19)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 27,769 | $ 21,345 | $ 20,924 | $ 34,155 | $ 26,791 | $ 11,732 |
Portfolio turnover rate G | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period November 3, 2004 (commencement of operations) to July 31, 2005. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Value
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 11.22 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .01 | .10 | .03 | (.02) | .01 | (.01) |
Net realized and unrealized gain (loss) | 1.47 | (.60) | (1.99) | 1.91 | .74 | 2.84 |
Total from investment operations | 1.48 | (.50) | (1.96) | 1.89 | .75 | 2.83 |
Distributions from net investment income | (.05) | (.08) | - | - | (.01) | (.01) |
Distributions from net realized gain | - | (.11) | (.56) | (.68) | (.36) | - |
Total distributions | (.05) | (.19) | (.56) | (.68) | (.37) | (.01) |
Redemption fees added to paid in capital D | - I | - I | - I | - I | .01 | .01 |
Net asset value, end of period | $ 12.65 | $ 11.22 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 |
Total Return B, C | 13.18% | (4.15)% | (14.10)% | 14.96% | 6.07% | 28.36% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | 1.21% A | 1.20% | 1.14% | 1.11% | 1.09% | 1.05% A |
Expenses net of fee waivers, if any | 1.21% A | 1.20% | 1.14% | 1.11% | 1.09% | 1.05% A |
Expenses net of all reductions | 1.20% A | 1.20% | 1.13% | 1.11% | 1.06% | .99% A |
Net investment income (loss) | .21% A | 1.01% | .22% | (.15)% | .06% | (.08)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 1,580,773 | $ 1,488,736 | $ 1,136,860 | $ 1,233,808 | $ 957,720 | $ 582,689 |
Portfolio turnover rate F | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period November 3, 2004 (commencement of operations) to July 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended | Year ended July 31, |
(Unaudited) | 2009 H | |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 11.22 | $ 10.27 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .03 | .01 |
Net realized and unrealized gain (loss) | 1.47 | .94 G |
Total from investment operations | 1.50 | .95 |
Distributions from net investment income | (.07) | - |
Redemption fees added to paid in capital D, J | - | - |
Net asset value, end of period | $ 12.65 | $ 11.22 |
Total Return B, C | 13.36% | 9.25% |
Ratios to Average Net Assets E, I |
|
|
Expenses before reductions | .91% A | .86% A |
Expenses net of fee waivers, if any | .91% A | .86% A |
Expenses net of all reductions | .91% A | .86% A |
Net investment income (loss) | .51% A | .64% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 43,748 | $ 159 |
Portfolio turnover rate F | 65% A | 51% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. H For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 11.24 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .02 | .10 | .03 | (.02) | .01 | (.01) |
Net realized and unrealized gain (loss) | 1.46 | (.59) | (1.99) | 1.91 | .74 | 2.84 |
Total from investment operations | 1.48 | (.49) | (1.96) | 1.89 | .75 | 2.83 |
Distributions from net investment income | (.06) | (.07) | - | - | (.01) | (.01) |
Distributions from net realized gain | - | (.11) | (.56) | (.68) | (.36) | - |
Total distributions | (.06) | (.18) | (.56) | (.68) | (.37) | (.01) |
Redemption fees added to paid in capital D | - I | - I | - I | - I | .01 | .01 |
Net asset value, end of period | $ 12.66 | $ 11.24 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 |
Total Return B, C | 13.20% | (4.04)% | (14.10)% | 14.99% | 6.08% | 28.36% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | 1.14% A | 1.20% | 1.13% | 1.10% | 1.08% | 1.07% A |
Expenses net of fee waivers, if any | 1.14% A | 1.15% | 1.13% | 1.10% | 1.08% | 1.07% A |
Expenses net of all reductions | 1.14% A | 1.15% | 1.13% | 1.10% | 1.05% | 1.01% A |
Net investment income (loss) | .28% A | 1.06% | .22% | (.13)% | .08% | (.10)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 34,956 | $ 10,336 | $ 8,584 | $ 11,594 | $ 9,422 | $ 3,761 |
Portfolio turnover rate F | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period November 3, 2004 (commencement of operations) to July 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
1. Organization.
Fidelity Small Cap Value Fund (the Fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, Small Cap Value, Class F and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, market discount, partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 297,941,423 |
|
Gross unrealized depreciation | (130,466,321) |
|
Net unrealized appreciation (depreciation) | $ 167,475,102 |
|
|
|
|
Tax cost | $ 1,770,685,505 |
|
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $566,535,496 and $583,318,311, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class of the Fund, Small Cap Value as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .86% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution | Service | Paid to | Retained |
Class A | -% | .25% | $ 82,280 | $ 3,258 |
Class T | .25% | .25% | 80,386 | - |
Class B | .75% | .25% | 39,917 | 29,938 |
Class C | .75% | .25% | 125,105 | 28,796 |
|
|
| $ 327,688 | $ 61,992 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 16,612 |
Class T | 3,124 |
Class B* | 9,944 |
Class C* | 605 |
| $ 30,285 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of each class, except for Class F. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each applicable class were as follows:
| Amount | % of |
Class A | $ 112,083 | .34 |
Class T | 55,709 | .35 |
Class B | 13,679 | .34 |
Class C | 42,670 | .34 |
Small Cap Value | 2,386,084 | .29 |
Institutional Class | 30,091 | .23 |
| $ 2,640,316 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $11,830 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily | Weighted Average | Interest |
Borrower | $ 7,401,500 | .39% | $ 635 |
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $3,436 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $197,720.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | 1.40% | $ 34,879 |
Class T | 1.65% | 17,921 |
Class B | 2.15% | 4,312 |
Class C | 2.15% | 13,639 |
|
| $ 70,751 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $27,462 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $3.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 159,193 | $ 252,162 |
Class T | 36,903 | 111,704 |
Class B | - | 20,177 |
Class C | - | 45,207 |
Small Cap Value | 6,230,380 | 7,822,387 |
Class F | 28,266 | - |
Institutional Class | 105,378 | 49,636 |
Total | $ 6,560,120 | $ 8,301,273 |
Semiannual Report
9. Distributions to Shareholders - continued
Six months ended | Year ended | |
From net realized gain |
|
|
Class A | $ - | $ 496,925 |
Class T | - | 350,121 |
Class B | - | 77,046 |
Class C | - | 207,577 |
Small Cap Value | - | 10,883,170 |
Institutional Class | - | 80,333 |
Total | $ - | $ 12,095,172 |
A Distributions for Class F are for the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,675,860 | 2,028,986 | $ 20,287,531 | $ 19,478,233 |
Reinvestment of distributions | 12,276 | 64,970 | 146,358 | 694,477 |
Shares redeemed | (969,223) | (1,588,437) | (11,841,680) | (14,658,645) |
Net increase (decrease) | 718,913 | 505,519 | $ 8,592,209 | $ 5,514,065 |
Class T |
|
|
|
|
Shares sold | 538,429 | 1,489,054 | $ 6,425,686 | $ 15,806,614 |
Reinvestment of distributions | 3,030 | 40,641 | 35,906 | 449,360 |
Shares redeemed | (413,582) | (1,680,727) | (5,030,046) | (14,685,646) |
Net increase (decrease) | 127,877 | (151,032) | $ 1,431,546 | $ 1,570,328 |
Class B |
|
|
|
|
Shares sold | 102,176 | 305,827 | $ 1,205,333 | $ 3,051,319 |
Reinvestment of distributions | - | 7,759 | - | 85,943 |
Shares redeemed | (87,140) | (335,978) | (1,036,071) | (2,971,686) |
Net increase (decrease) | 15,036 | (22,392) | $ 169,262 | $ 165,576 |
Class C |
|
|
|
|
Shares sold | 507,548 | 832,906 | $ 6,054,371 | $ 7,981,000 |
Reinvestment of distributions | - | 19,410 | - | 217,621 |
Shares redeemed | (204,893) | (694,752) | (2,449,563) | (6,287,773) |
Net increase (decrease) | 302,655 | 157,564 | $ 3,604,808 | $ 1,910,848 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Small Cap Value |
|
|
|
|
Shares sold | 21,234,724 | 61,277,579 | $ 258,095,114 | $ 600,357,815 |
Reinvestment of distributions | 507,903 | 1,741,583 | 6,101,827 | 18,397,974 |
Shares redeemed | (29,529,999) | (25,782,005) | (357,109,003) | (237,589,067) |
Net increase (decrease) | (7,787,372) | 37,237,157 | $ (92,912,062) | $ 381,166,722 |
Class F |
|
|
|
|
Shares sold | 3,524,076 | 14,205 | $ 43,507,553 | $ 144,857 |
Reinvestment of distributions | 2,350 | - | 28,266 | - |
Shares redeemed | (83,353) | (18) | (1,041,511) | (181) |
Net increase (decrease) | 3,443,073 | 14,187 | $ 42,494,308 | $ 144,676 |
Institutional Class |
|
|
|
|
Shares sold | 2,081,830 | 479,087 | $ 25,294,424 | $ 4,626,811 |
Reinvestment of distributions | 7,512 | 8,812 | 90,344 | 93,632 |
Shares redeemed | (248,838) | (288,597) | (3,067,092) | (2,736,358) |
Net increase (decrease) | 1,840,504 | 199,302 | $ 22,317,676 | $ 1,984,085 |
A Share transactions for Class F are for the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
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, the Fidelity Freedom Funds were the owners of record, in the aggregate, of approximately 38% of the total outstanding shares of the Fund.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
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Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
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Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
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For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
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Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
Arizona
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Semiannual Report
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Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
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(U.K.) Inc.
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(Japan) Inc.
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FIL Investment Advisors
FIL Investment Advisors (U.K.) Ltd.
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Automated line for quickest service
SCV-USAN-0310 1.803708.105
Fidelity®
Small Cap Value
Fund
Class F
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,131.40 | $ 7.52 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,129.80 | $ 8.86 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,126.80 | $ 11.53 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,126.70 | $ 11.52 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Small Cap Value | 1.21% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,131.80 | $ 6.50 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.11 | $ 6.16 |
Class F | .91% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,133.60 | $ 4.89 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.62 | $ 4.63 |
Institutional Class | 1.14% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,132.00 | $ 6.13 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.46 | $ 5.80 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Astoria Financial Corp. | 3.4 | 2.8 |
RTI International Metals, Inc. | 3.3 | 0.0 |
Carpenter Technology Corp. | 3.0 | 3.0 |
WESCO International, Inc. | 3.0 | 2.9 |
United Stationers, Inc. | 2.9 | 3.0 |
Alexandria Real Estate Equities, Inc. | 2.8 | 2.6 |
Platinum Underwriters Holdings Ltd. | 2.8 | 0.0 |
Washington Federal, Inc. | 2.7 | 1.7 |
Superior Energy Services, Inc. | 2.7 | 2.0 |
HNI Corp. | 2.6 | 3.0 |
| 29.2 | |
Top Five Market Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Financials | 35.7 | 33.4 |
Industrials | 13.5 | 15.9 |
Consumer Discretionary | 11.3 | 12.6 |
Information Technology | 9.9 | 11.6 |
Materials | 7.0 | 4.8 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks 99.5% |
| ![]() | Stocks 98.8% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 9.6% |
| ** Foreign investments | 8.1% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.3% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 10.6% | |||
Diversified Consumer Services - 2.7% | |||
Matthews International Corp. Class A | 590,187 | $ 19,977,830 | |
Regis Corp. (c) | 1,745,882 | 27,811,900 | |
| 47,789,730 | ||
Household Durables - 5.2% | |||
M.D.C. Holdings, Inc. | 960,300 | 32,266,080 | |
Meritage Homes Corp. (a) | 1,509,960 | 33,808,004 | |
Ryland Group, Inc. | 1,262,448 | 28,102,092 | |
| 94,176,176 | ||
Specialty Retail - 1.8% | |||
Asbury Automotive Group, Inc. (a) | 1,455,159 | 16,108,610 | |
Tsutsumi Jewelry Co. Ltd. | 791,400 | 15,096,829 | |
| 31,205,439 | ||
Textiles, Apparel & Luxury Goods - 0.9% | |||
Iconix Brand Group, Inc. (a) | 1,330,087 | 16,785,698 | |
TOTAL CONSUMER DISCRETIONARY | 189,957,043 | ||
CONSUMER STAPLES - 5.2% | |||
Food & Staples Retailing - 5.2% | |||
BJ's Wholesale Club, Inc. (a) | 1,290,000 | 43,589,100 | |
Casey's General Stores, Inc. | 1,235,183 | 37,895,414 | |
Ingles Markets, Inc. Class A | 838,531 | 11,873,599 | |
| 93,358,113 | ||
ENERGY - 4.4% | |||
Energy Equipment & Services - 2.7% | |||
Superior Energy Services, Inc. (a) | 2,091,700 | 48,046,349 | |
Oil, Gas & Consumable Fuels - 1.7% | |||
Mariner Energy, Inc. (a) | 2,166,954 | 31,312,485 | |
TOTAL ENERGY | 79,358,834 | ||
FINANCIALS - 34.2% | |||
Capital Markets - 3.5% | |||
optionsXpress Holdings, Inc. | 1,955,000 | 28,054,250 | |
Sparx Group Co. Ltd. (a) | 1,940 | 253,595 | |
TradeStation Group, Inc. (a) | 2,062,291 | 14,580,397 | |
Waddell & Reed Financial, Inc. Class A | 640,000 | 20,051,200 | |
| 62,939,442 | ||
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Commercial Banks - 10.7% | |||
Associated Banc-Corp. (c) | 2,692,383 | $ 34,247,112 | |
CapitalSource, Inc. | 6,395,000 | 30,632,050 | |
City National Corp. (c) | 784,900 | 38,766,211 | |
PacWest Bancorp (c) | 1,625,000 | 33,718,750 | |
TCF Financial Corp. (c) | 2,705,500 | 39,608,520 | |
Western Liberty Bancorp (a)(d) | 2,400,000 | 15,072,000 | |
| 192,044,643 | ||
Insurance - 6.5% | |||
Aspen Insurance Holdings Ltd. | 870,200 | 23,173,426 | |
Max Capital Group Ltd. | 1,957,411 | 44,080,896 | |
Platinum Underwriters Holdings Ltd. | 1,396,975 | 50,654,314 | |
| 117,908,636 | ||
Real Estate Investment Trusts - 4.9% | |||
Alexandria Real Estate Equities, Inc. (c) | 848,300 | 50,668,959 | |
Highwoods Properties, Inc. (SBI) | 670,330 | 20,250,669 | |
National Retail Properties, Inc. | 840,000 | 16,968,000 | |
| 87,887,628 | ||
Real Estate Management & Development - 2.5% | |||
Jones Lang LaSalle, Inc. | 791,000 | 45,094,910 | |
Thrifts & Mortgage Finance - 6.1% | |||
Astoria Financial Corp. | 4,618,152 | 60,959,607 | |
Washington Federal, Inc. | 2,616,175 | 48,791,664 | |
| 109,751,271 | ||
TOTAL FINANCIALS | 615,626,530 | ||
HEALTH CARE - 6.7% | |||
Health Care Providers & Services - 6.7% | |||
Chemed Corp. | 510,200 | 23,724,300 | |
MEDNAX, Inc. (a) | 591,500 | 33,632,690 | |
Providence Service Corp. (a)(d) | 1,016,495 | 13,051,796 | |
Team Health Holdings, Inc. | 1,300,000 | 19,175,000 | |
VCA Antech, Inc. (a) | 1,240,000 | 31,483,600 | |
| 121,067,386 | ||
INDUSTRIALS - 13.5% | |||
Commercial Services & Supplies - 6.0% | |||
ACCO Brands Corp. (a) | 1,250,923 | 9,632,107 | |
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Commercial Services & Supplies - continued | |||
HNI Corp. (c) | 1,899,671 | $ 47,529,768 | |
United Stationers, Inc. (a) | 939,000 | 51,231,840 | |
| 108,393,715 | ||
Machinery - 2.5% | |||
Blount International, Inc. (a) | 1,854,723 | 20,661,614 | |
Graco, Inc. | 865,000 | 23,086,850 | |
| 43,748,464 | ||
Trading Companies & Distributors - 5.0% | |||
H&E Equipment Services, Inc. (a)(d) | 3,489,408 | 37,022,619 | |
WESCO International, Inc. (a) | 1,925,000 | 53,361,000 | |
| 90,383,619 | ||
TOTAL INDUSTRIALS | 242,525,798 | ||
INFORMATION TECHNOLOGY - 9.9% | |||
Communications Equipment - 2.4% | |||
Polycom, Inc. (a) | 970,000 | 21,757,100 | |
ViaSat, Inc. (a) | 809,472 | 22,122,870 | |
| 43,879,970 | ||
Electronic Equipment & Components - 3.3% | |||
Ingram Micro, Inc. Class A (a) | 1,503,100 | 25,402,390 | |
Macnica, Inc. | 677,400 | 11,233,718 | |
Ryoyo Electro Corp. | 1,272,700 | 10,813,790 | |
SYNNEX Corp. (a) | 409,898 | 10,850,000 | |
| 58,299,898 | ||
Internet Software & Services - 2.4% | |||
DealerTrack Holdings, Inc. (a) | 1,749,434 | 31,437,329 | |
j2 Global Communications, Inc. (a) | 603,149 | 12,388,680 | |
| 43,826,009 | ||
Semiconductors & Semiconductor Equipment - 0.9% | |||
Miraial Co. Ltd. (d) | 570,200 | 15,317,768 | |
Software - 0.9% | |||
MICROS Systems, Inc. (a) | 580,000 | 16,576,400 | |
TOTAL INFORMATION TECHNOLOGY | 177,900,045 | ||
MATERIALS - 7.0% | |||
Chemicals - 0.7% | |||
Spartech Corp. | 1,361,202 | 13,734,528 | |
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Metals & Mining - 6.3% | |||
Carpenter Technology Corp. | 2,009,380 | $ 53,851,384 | |
RTI International Metals, Inc. (a)(d) | 2,392,597 | 59,216,776 | |
| 113,068,160 | ||
TOTAL MATERIALS | 126,802,688 | ||
TELECOMMUNICATION SERVICES - 1.0% | |||
Diversified Telecommunication Services - 1.0% | |||
Cogent Communications Group, Inc. (a) | 1,665,000 | 18,181,800 | |
UTILITIES - 4.8% | |||
Electric Utilities - 2.0% | |||
Westar Energy, Inc. | 1,710,000 | 36,474,300 | |
Gas Utilities - 1.3% | |||
Southwest Gas Corp. | 830,989 | 22,993,466 | |
Independent Power Producers & Energy Traders - 1.5% | |||
RRI Energy, Inc. (a) | 5,600,000 | 27,720,000 | |
TOTAL UTILITIES | 87,187,766 | ||
TOTAL COMMON STOCKS (Cost $1,594,125,230) | 1,751,966,003 | ||
Nonconvertible Preferred Stocks - 2.2% | |||
|
|
|
|
CONSUMER DISCRETIONARY - 0.7% | |||
Household Durables - 0.7% | |||
M/I Homes, Inc. Series A, 9.75% (a) | 730,800 | 11,510,100 | |
FINANCIALS - 1.5% | |||
Real Estate Investment Trusts - 1.5% | |||
Developers Diversified Realty Corp.: | |||
(depositary shares) Series H, 7.375% | 818,790 | 16,334,861 | |
Series I, 7.50% | 542,010 | 10,867,301 | |
| 27,202,162 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $25,252,713) | 38,712,262 | ||
Money Market Funds - 8.2% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.17% (e) | 15,158,848 | $ 15,158,848 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(e) | 132,323,494 | 132,323,494 | |
TOTAL MONEY MARKET FUNDS (Cost $147,482,342) | 147,482,342 | ||
TOTAL INVESTMENT PORTFOLIO - 107.7% (Cost $1,766,860,285) | 1,938,160,607 | ||
NET OTHER ASSETS - (7.7)% | (137,753,096) | ||
NET ASSETS - 100% | $ 1,800,407,511 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated company |
(e) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
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 | $ 21,352 |
Fidelity Securities Lending Cash Central Fund | 197,720 |
Total | $ 219,072 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliates | Value, | Purchases | Sales | Dividend | Value, |
Carpenter Technology Corp. | $ 48,582,409 | $ - | $ 14,222,750 | $ 1,279,465 | $ - |
H&E Equipment Services, Inc. | 17,823,149 | 19,092,190 | - | - | 37,022,619 |
HNI Corp. | 48,476,178 | 4,669,921 | 12,525,138 | 939,645 | - |
Miraial Co. Ltd. | 11,951,237 | - | - | 177,482 | 15,317,768 |
Providence Service Corp. | 5,488,479 | 7,744,742 | - | - | 13,051,796 |
RTI International Metals, Inc. | - | 61,889,471 | 4,810,113 | - | 59,216,776 |
Spartech Corp. | 19,788,775 | 80,848 | 2,807,218 | - | - |
WESCO International, Inc. | 45,676,500 | 7,269,797 | 5,877,924 | - | - |
Western Liberty Bancorp | - | 3,630,400 | - | - | 15,072,000 |
Total | $ 197,786,727 | $ 104,377,369 | $ 40,243,143 | $ 2,396,592 | $ 139,680,959 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $19,890,497 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $151,920,436 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $127,885,454) - See accompanying schedule: Unaffiliated issuers (cost $1,484,926,892) | $ 1,650,997,306 |
|
Fidelity Central Funds (cost $147,482,342) | 147,482,342 |
|
Other affiliated issuers (cost $134,451,051) | 139,680,959 |
|
Total Investments (cost $1,766,860,285) |
| $ 1,938,160,607 |
Receivable for investments sold | 236,239 | |
Receivable for fund shares sold | 3,708,433 | |
Dividends receivable | 1,650,419 | |
Distributions receivable from Fidelity Central Funds | 16,535 | |
Prepaid expenses | 6,715 | |
Receivable from investment adviser for expense reductions | 13,238 | |
Other receivables | 20,459 | |
Total assets | 1,943,812,645 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 6,760,361 | |
Payable for fund shares redeemed | 2,445,680 | |
Accrued management fee | 1,317,855 | |
Distribution fees payable | 60,169 | |
Other affiliated payables | 466,365 | |
Other payables and accrued expenses | 31,210 | |
Collateral on securities loaned, at value | 132,323,494 | |
Total liabilities | 143,405,134 | |
|
|
|
Net Assets | $ 1,800,407,511 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,720,209,220 | |
Undistributed net investment income | 152,847 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (91,252,062) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 171,297,506 | |
Net Assets | $ 1,800,407,511 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 12.56 | |
|
|
|
Maximum offering price per share (100/94.25 of $12.56) | $ 13.33 | |
Class T: | $ 12.47 | |
|
|
|
Maximum offering price per share (100/96.50 of $12.47) | $ 12.92 | |
Class B: | $ 12.26 | |
|
|
|
Class C: | $ 12.27 | |
|
|
|
|
|
|
Small Cap Value: | $ 12.65 | |
|
|
|
Class F: | $ 12.65 | |
|
|
|
Institutional Class: | $ 12.66 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends (including $2,396,592 earned from other affiliated issuers) |
| $ 12,500,182 |
Interest |
| 18,036 |
Income from Fidelity Central Funds |
| 219,072 |
Total income |
| 12,737,290 |
|
|
|
Expenses | ||
Management fee | $ 6,386,783 | |
Performance adjustment | 1,325,098 | |
Transfer agent fees | 2,640,316 | |
Distribution fees | 327,688 | |
Accounting and security lending fees | 322,062 | |
Custodian fees and expenses | 22,075 | |
Independent trustees' compensation | 5,217 | |
Registration fees | 103,021 | |
Audit | 30,165 | |
Legal | 5,603 | |
Interest | 635 | |
Miscellaneous | 13,458 | |
Total expenses before reductions | 11,182,121 | |
Expense reductions | (98,216) | 11,083,905 |
Net investment income (loss) | 1,653,385 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 85,630,649 | |
Other affiliated issuers | 3,071,265 |
|
Foreign currency transactions | 19,631 | |
Capital gain distributions from Fidelity Central Funds | 9,755 | |
Total net realized gain (loss) |
| 88,731,300 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 119,319,234 | |
Assets and liabilities in foreign currencies | (3,940) | |
Total change in net unrealized appreciation (depreciation) |
| 119,315,294 |
Net gain (loss) | 208,046,594 | |
Net increase (decrease) in net assets resulting from operations | $ 209,699,979 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 1,653,385 | $ 11,185,799 |
Net realized gain (loss) | 88,731,300 | (175,985,663) |
Change in net unrealized appreciation (depreciation) | 119,315,294 | 144,791,983 |
Net increase (decrease) in net assets resulting | 209,699,979 | (20,007,881) |
Distributions to shareholders from net investment income | (6,560,120) | (8,301,273) |
Distributions to shareholders from net realized gain | - | (12,095,172) |
Total distributions | (6,560,120) | (20,396,445) |
Share transactions - net increase (decrease) | (14,302,253) | 392,456,300 |
Redemption fees | 278,381 | 448,503 |
Total increase (decrease) in net assets | 189,115,987 | 352,500,477 |
|
|
|
Net Assets | ||
Beginning of period | 1,611,291,524 | 1,258,791,047 |
End of period (including undistributed net investment income of $152,847 and undistributed net investment income of $5,059,582, respectively) | $ 1,800,407,511 | $ 1,611,291,524 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 H | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 11.13 | $ 11.82 | $ 14.34 | $ 13.17 | $ 12.80 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | - J | .08 | (.01) | (.06) | (.03) | (.04) |
Net realized and unrealized gain (loss) | 1.46 | (.60) | (1.98) | 1.90 | .74 | 2.84 |
Total from investment operations | 1.46 | (.52) | (1.99) | 1.84 | .71 | 2.80 |
Distributions from net investment income | (.03) | (.06) | - | - | - | (.01) |
Distributions from net realized gain | - | (.11) | (.53) | (.67) | (.35) | - |
Total distributions | (.03) | (.17) | (.53) | (.67) | (.35) | (.01) |
Redemption fees added to paid in capital E | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 12.56 | $ 11.13 | $ 11.82 | $ 14.34 | $ 13.17 | $ 12.80 |
Total Return B, C, D | 13.14% | (4.37)% | (14.35)% | 14.59% | 5.72% | 28.06% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.51% A | 1.45% | 1.43% | 1.45% | 1.51% | 1.46% A |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% | 1.40% | 1.40% | 1.44% A |
Expenses net of all reductions | 1.40% A | 1.40% | 1.40% | 1.40% | 1.36% | 1.38% A |
Net investment income (loss) | .02% A | .81% | (.05)% | (.44)% | (.24)% | (.46)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 71,120 | $ 55,029 | $ 52,446 | $ 61,357 | $ 39,931 | $ 9,390 |
Portfolio turnover rate G | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period November 3, 2004 (commencement of operations) to July 31, 2005. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 H | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 11.05 | $ 11.74 | $ 14.28 | $ 13.13 | $ 12.78 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.01) | .05 | (.04) | (.10) | (.07) | (.06) |
Net realized and unrealized gain (loss) | 1.44 | (.59) | (1.97) | 1.90 | .74 | 2.83 |
Total from investment operations | 1.43 | (.54) | (2.01) | 1.80 | .67 | 2.77 |
Distributions from net investment income | (.01) | (.04) | - | - | - | - |
Distributions from net realized gain | - | (.11) | (.53) | (.65) | (.33) | - |
Total distributions | (.01) | (.15) | (.53) | (.65) | (.33) | - |
Redemption fees added to paid in capital E | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 12.47 | $ 11.05 | $ 11.74 | $ 14.28 | $ 13.13 | $ 12.78 |
Total Return B, C, D | 12.98% | (4.57)% | (14.58)% | 14.34% | 5.47% | 27.80% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.76% A | 1.70% | 1.68% | 1.66% | 1.67% | 1.72% A |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.65% | 1.68% A |
Expenses net of all reductions | 1.65% A | 1.65% | 1.65% | 1.65% | 1.61% | 1.62% A |
Net investment income (loss) | (.23)% A | .56% | (.30)% | (.69)% | (.49)% | (.70)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 33,795 | $ 28,534 | $ 32,091 | $ 51,518 | $ 45,460 | $ 12,725 |
Portfolio turnover rate G | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period November 3, 2004 (commencement of operations) to July 31, 2005. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 H | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.88 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.73 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.04) | .01 | (.10) | (.17) | (.13) | (.10) |
Net realized and unrealized gain (loss) | 1.42 | (.59) | (1.96) | 1.90 | .74 | 2.82 |
Total from investment operations | 1.38 | (.58) | (2.06) | 1.73 | .61 | 2.72 |
Distributions from net investment income | - | (.03) | - | - | - | - |
Distributions from net realized gain | - | (.11) | (.53) | (.61) | (.28) | - |
Total distributions | - | (.14) | (.53) | (.61) | (.28) | - |
Redemption fees added to paid in capital E | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 12.26 | $ 10.88 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.73 |
Total Return B, C, D | 12.68% | (5.05)% | (15.04)% | 13.78% | 4.97% | 27.30% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 2.26% A | 2.20% | 2.18% | 2.20% | 2.26% | 2.24% A |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.19% A |
Expenses net of all reductions | 2.15% A | 2.15% | 2.15% | 2.15% | 2.11% | 2.13% A |
Net investment income (loss) | (.73)% A | .06% | (.80)% | (1.19)% | (.99)% | (1.21)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 8,246 | $ 7,153 | $ 7,886 | $ 12,075 | $ 10,214 | $ 3,931 |
Portfolio turnover rate G | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period November 3, 2004 (commencement of operations) to July 31, 2005. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 H | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.89 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.74 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.04) | .01 | (.10) | (.17) | (.13) | (.10) |
Net realized and unrealized gain (loss) | 1.42 | (.58) | (1.96) | 1.90 | .74 | 2.83 |
Total from investment operations | 1.38 | (.57) | (2.06) | 1.73 | .61 | 2.73 |
Distributions from net investment income | - | (.03) | - | - | - | - |
Distributions from net realized gain | - | (.11) | (.53) | (.61) | (.29) | - |
Total distributions | - | (.14) | (.53) | (.61) | (.29) | - |
Redemption fees added to paid in capital E | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 12.27 | $ 10.89 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.74 |
Total Return B, C, D | 12.67% | (4.98)% | (15.04)% | 13.77% | 4.92% | 27.40% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 2.26% A | 2.20% | 2.18% | 2.20% | 2.22% | 2.17% A |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.17% A |
Expenses net of all reductions | 2.14% A | 2.15% | 2.15% | 2.15% | 2.11% | 2.11% A |
Net investment income (loss) | (.73)% A | .06% | (.80)% | (1.19)% | (.99)% | (1.19)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 27,769 | $ 21,345 | $ 20,924 | $ 34,155 | $ 26,791 | $ 11,732 |
Portfolio turnover rate G | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period November 3, 2004 (commencement of operations) to July 31, 2005. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Value
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 11.22 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .01 | .10 | .03 | (.02) | .01 | (.01) |
Net realized and unrealized gain (loss) | 1.47 | (.60) | (1.99) | 1.91 | .74 | 2.84 |
Total from investment operations | 1.48 | (.50) | (1.96) | 1.89 | .75 | 2.83 |
Distributions from net investment income | (.05) | (.08) | - | - | (.01) | (.01) |
Distributions from net realized gain | - | (.11) | (.56) | (.68) | (.36) | - |
Total distributions | (.05) | (.19) | (.56) | (.68) | (.37) | (.01) |
Redemption fees added to paid in capital D | - I | - I | - I | - I | .01 | .01 |
Net asset value, end of period | $ 12.65 | $ 11.22 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 |
Total Return B, C | 13.18% | (4.15)% | (14.10)% | 14.96% | 6.07% | 28.36% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | 1.21% A | 1.20% | 1.14% | 1.11% | 1.09% | 1.05% A |
Expenses net of fee waivers, if any | 1.21% A | 1.20% | 1.14% | 1.11% | 1.09% | 1.05% A |
Expenses net of all reductions | 1.20% A | 1.20% | 1.13% | 1.11% | 1.06% | .99% A |
Net investment income (loss) | .21% A | 1.01% | .22% | (.15)% | .06% | (.08)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 1,580,773 | $ 1,488,736 | $ 1,136,860 | $ 1,233,808 | $ 957,720 | $ 582,689 |
Portfolio turnover rate F | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period November 3, 2004 (commencement of operations) to July 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended | Year ended July 31, |
(Unaudited) | 2009 H | |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 11.22 | $ 10.27 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .03 | .01 |
Net realized and unrealized gain (loss) | 1.47 | .94 G |
Total from investment operations | 1.50 | .95 |
Distributions from net investment income | (.07) | - |
Redemption fees added to paid in capital D, J | - | - |
Net asset value, end of period | $ 12.65 | $ 11.22 |
Total Return B, C | 13.36% | 9.25% |
Ratios to Average Net Assets E, I |
|
|
Expenses before reductions | .91% A | .86% A |
Expenses net of fee waivers, if any | .91% A | .86% A |
Expenses net of all reductions | .91% A | .86% A |
Net investment income (loss) | .51% A | .64% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 43,748 | $ 159 |
Portfolio turnover rate F | 65% A | 51% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. H For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 11.24 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .02 | .10 | .03 | (.02) | .01 | (.01) |
Net realized and unrealized gain (loss) | 1.46 | (.59) | (1.99) | 1.91 | .74 | 2.84 |
Total from investment operations | 1.48 | (.49) | (1.96) | 1.89 | .75 | 2.83 |
Distributions from net investment income | (.06) | (.07) | - | - | (.01) | (.01) |
Distributions from net realized gain | - | (.11) | (.56) | (.68) | (.36) | - |
Total distributions | (.06) | (.18) | (.56) | (.68) | (.37) | (.01) |
Redemption fees added to paid in capital D | - I | - I | - I | - I | .01 | .01 |
Net asset value, end of period | $ 12.66 | $ 11.24 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 |
Total Return B, C | 13.20% | (4.04)% | (14.10)% | 14.99% | 6.08% | 28.36% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | 1.14% A | 1.20% | 1.13% | 1.10% | 1.08% | 1.07% A |
Expenses net of fee waivers, if any | 1.14% A | 1.15% | 1.13% | 1.10% | 1.08% | 1.07% A |
Expenses net of all reductions | 1.14% A | 1.15% | 1.13% | 1.10% | 1.05% | 1.01% A |
Net investment income (loss) | .28% A | 1.06% | .22% | (.13)% | .08% | (.10)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 34,956 | $ 10,336 | $ 8,584 | $ 11,594 | $ 9,422 | $ 3,761 |
Portfolio turnover rate F | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period November 3, 2004 (commencement of operations) to July 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
1. Organization.
Fidelity Small Cap Value Fund (the Fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, Small Cap Value, Class F and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, market discount, partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 297,941,423 |
|
Gross unrealized depreciation | (130,466,321) |
|
Net unrealized appreciation (depreciation) | $ 167,475,102 |
|
|
|
|
Tax cost | $ 1,770,685,505 |
|
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $566,535,496 and $583,318,311, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class of the Fund, Small Cap Value as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .86% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution | Service | Paid to | Retained |
Class A | -% | .25% | $ 82,280 | $ 3,258 |
Class T | .25% | .25% | 80,386 | - |
Class B | .75% | .25% | 39,917 | 29,938 |
Class C | .75% | .25% | 125,105 | 28,796 |
|
|
| $ 327,688 | $ 61,992 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 16,612 |
Class T | 3,124 |
Class B* | 9,944 |
Class C* | 605 |
| $ 30,285 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of each class, except for Class F. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each applicable class were as follows:
| Amount | % of |
Class A | $ 112,083 | .34 |
Class T | 55,709 | .35 |
Class B | 13,679 | .34 |
Class C | 42,670 | .34 |
Small Cap Value | 2,386,084 | .29 |
Institutional Class | 30,091 | .23 |
| $ 2,640,316 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $11,830 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily | Weighted Average | Interest |
Borrower | $ 7,401,500 | .39% | $ 635 |
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $3,436 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $197,720.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | 1.40% | $ 34,879 |
Class T | 1.65% | 17,921 |
Class B | 2.15% | 4,312 |
Class C | 2.15% | 13,639 |
|
| $ 70,751 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $27,462 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $3.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 159,193 | $ 252,162 |
Class T | 36,903 | 111,704 |
Class B | - | 20,177 |
Class C | - | 45,207 |
Small Cap Value | 6,230,380 | 7,822,387 |
Class F | 28,266 | - |
Institutional Class | 105,378 | 49,636 |
Total | $ 6,560,120 | $ 8,301,273 |
Semiannual Report
9. Distributions to Shareholders - continued
Six months ended | Year ended | |
From net realized gain |
|
|
Class A | $ - | $ 496,925 |
Class T | - | 350,121 |
Class B | - | 77,046 |
Class C | - | 207,577 |
Small Cap Value | - | 10,883,170 |
Institutional Class | - | 80,333 |
Total | $ - | $ 12,095,172 |
A Distributions for Class F are for the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,675,860 | 2,028,986 | $ 20,287,531 | $ 19,478,233 |
Reinvestment of distributions | 12,276 | 64,970 | 146,358 | 694,477 |
Shares redeemed | (969,223) | (1,588,437) | (11,841,680) | (14,658,645) |
Net increase (decrease) | 718,913 | 505,519 | $ 8,592,209 | $ 5,514,065 |
Class T |
|
|
|
|
Shares sold | 538,429 | 1,489,054 | $ 6,425,686 | $ 15,806,614 |
Reinvestment of distributions | 3,030 | 40,641 | 35,906 | 449,360 |
Shares redeemed | (413,582) | (1,680,727) | (5,030,046) | (14,685,646) |
Net increase (decrease) | 127,877 | (151,032) | $ 1,431,546 | $ 1,570,328 |
Class B |
|
|
|
|
Shares sold | 102,176 | 305,827 | $ 1,205,333 | $ 3,051,319 |
Reinvestment of distributions | - | 7,759 | - | 85,943 |
Shares redeemed | (87,140) | (335,978) | (1,036,071) | (2,971,686) |
Net increase (decrease) | 15,036 | (22,392) | $ 169,262 | $ 165,576 |
Class C |
|
|
|
|
Shares sold | 507,548 | 832,906 | $ 6,054,371 | $ 7,981,000 |
Reinvestment of distributions | - | 19,410 | - | 217,621 |
Shares redeemed | (204,893) | (694,752) | (2,449,563) | (6,287,773) |
Net increase (decrease) | 302,655 | 157,564 | $ 3,604,808 | $ 1,910,848 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Small Cap Value |
|
|
|
|
Shares sold | 21,234,724 | 61,277,579 | $ 258,095,114 | $ 600,357,815 |
Reinvestment of distributions | 507,903 | 1,741,583 | 6,101,827 | 18,397,974 |
Shares redeemed | (29,529,999) | (25,782,005) | (357,109,003) | (237,589,067) |
Net increase (decrease) | (7,787,372) | 37,237,157 | $ (92,912,062) | $ 381,166,722 |
Class F |
|
|
|
|
Shares sold | 3,524,076 | 14,205 | $ 43,507,553 | $ 144,857 |
Reinvestment of distributions | 2,350 | - | 28,266 | - |
Shares redeemed | (83,353) | (18) | (1,041,511) | (181) |
Net increase (decrease) | 3,443,073 | 14,187 | $ 42,494,308 | $ 144,676 |
Institutional Class |
|
|
|
|
Shares sold | 2,081,830 | 479,087 | $ 25,294,424 | $ 4,626,811 |
Reinvestment of distributions | 7,512 | 8,812 | 90,344 | 93,632 |
Shares redeemed | (248,838) | (288,597) | (3,067,092) | (2,736,358) |
Net increase (decrease) | 1,840,504 | 199,302 | $ 22,317,676 | $ 1,984,085 |
A Share transactions for Class F are for the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
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, the Fidelity Freedom Funds were the owners of record, in the aggregate, of approximately 38% of the total outstanding shares of the Fund.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.
By Phone
Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Workplace
Investing
1-800-835-5092
By PC
Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.401k.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisors
FIL Investment Advisors (U.K.) Ltd.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
SCV-F-SANN-0310 1.891899.100
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor
Small Cap Value
Fund - Class A, Class T,
Class B and Class C
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Class A, Class T, Class B
and Class C are classes of
Fidelity® Small Cap Value Fund
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,131.40 | $ 7.52 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,129.80 | $ 8.86 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,126.80 | $ 11.53 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,126.70 | $ 11.52 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Small Cap Value | 1.21% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,131.80 | $ 6.50 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.11 | $ 6.16 |
Class F | .91% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,133.60 | $ 4.89 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.62 | $ 4.63 |
Institutional Class | 1.14% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,132.00 | $ 6.13 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.46 | $ 5.80 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Astoria Financial Corp. | 3.4 | 2.8 |
RTI International Metals, Inc. | 3.3 | 0.0 |
Carpenter Technology Corp. | 3.0 | 3.0 |
WESCO International, Inc. | 3.0 | 2.9 |
United Stationers, Inc. | 2.9 | 3.0 |
Alexandria Real Estate Equities, Inc. | 2.8 | 2.6 |
Platinum Underwriters Holdings Ltd. | 2.8 | 0.0 |
Washington Federal, Inc. | 2.7 | 1.7 |
Superior Energy Services, Inc. | 2.7 | 2.0 |
HNI Corp. | 2.6 | 3.0 |
| 29.2 | |
Top Five Market Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Financials | 35.7 | 33.4 |
Industrials | 13.5 | 15.9 |
Consumer Discretionary | 11.3 | 12.6 |
Information Technology | 9.9 | 11.6 |
Materials | 7.0 | 4.8 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks 99.5% |
| ![]() | Stocks 98.8% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 9.6% |
| ** Foreign investments | 8.1% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.3% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 10.6% | |||
Diversified Consumer Services - 2.7% | |||
Matthews International Corp. Class A | 590,187 | $ 19,977,830 | |
Regis Corp. (c) | 1,745,882 | 27,811,900 | |
| 47,789,730 | ||
Household Durables - 5.2% | |||
M.D.C. Holdings, Inc. | 960,300 | 32,266,080 | |
Meritage Homes Corp. (a) | 1,509,960 | 33,808,004 | |
Ryland Group, Inc. | 1,262,448 | 28,102,092 | |
| 94,176,176 | ||
Specialty Retail - 1.8% | |||
Asbury Automotive Group, Inc. (a) | 1,455,159 | 16,108,610 | |
Tsutsumi Jewelry Co. Ltd. | 791,400 | 15,096,829 | |
| 31,205,439 | ||
Textiles, Apparel & Luxury Goods - 0.9% | |||
Iconix Brand Group, Inc. (a) | 1,330,087 | 16,785,698 | |
TOTAL CONSUMER DISCRETIONARY | 189,957,043 | ||
CONSUMER STAPLES - 5.2% | |||
Food & Staples Retailing - 5.2% | |||
BJ's Wholesale Club, Inc. (a) | 1,290,000 | 43,589,100 | |
Casey's General Stores, Inc. | 1,235,183 | 37,895,414 | |
Ingles Markets, Inc. Class A | 838,531 | 11,873,599 | |
| 93,358,113 | ||
ENERGY - 4.4% | |||
Energy Equipment & Services - 2.7% | |||
Superior Energy Services, Inc. (a) | 2,091,700 | 48,046,349 | |
Oil, Gas & Consumable Fuels - 1.7% | |||
Mariner Energy, Inc. (a) | 2,166,954 | 31,312,485 | |
TOTAL ENERGY | 79,358,834 | ||
FINANCIALS - 34.2% | |||
Capital Markets - 3.5% | |||
optionsXpress Holdings, Inc. | 1,955,000 | 28,054,250 | |
Sparx Group Co. Ltd. (a) | 1,940 | 253,595 | |
TradeStation Group, Inc. (a) | 2,062,291 | 14,580,397 | |
Waddell & Reed Financial, Inc. Class A | 640,000 | 20,051,200 | |
| 62,939,442 | ||
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Commercial Banks - 10.7% | |||
Associated Banc-Corp. (c) | 2,692,383 | $ 34,247,112 | |
CapitalSource, Inc. | 6,395,000 | 30,632,050 | |
City National Corp. (c) | 784,900 | 38,766,211 | |
PacWest Bancorp (c) | 1,625,000 | 33,718,750 | |
TCF Financial Corp. (c) | 2,705,500 | 39,608,520 | |
Western Liberty Bancorp (a)(d) | 2,400,000 | 15,072,000 | |
| 192,044,643 | ||
Insurance - 6.5% | |||
Aspen Insurance Holdings Ltd. | 870,200 | 23,173,426 | |
Max Capital Group Ltd. | 1,957,411 | 44,080,896 | |
Platinum Underwriters Holdings Ltd. | 1,396,975 | 50,654,314 | |
| 117,908,636 | ||
Real Estate Investment Trusts - 4.9% | |||
Alexandria Real Estate Equities, Inc. (c) | 848,300 | 50,668,959 | |
Highwoods Properties, Inc. (SBI) | 670,330 | 20,250,669 | |
National Retail Properties, Inc. | 840,000 | 16,968,000 | |
| 87,887,628 | ||
Real Estate Management & Development - 2.5% | |||
Jones Lang LaSalle, Inc. | 791,000 | 45,094,910 | |
Thrifts & Mortgage Finance - 6.1% | |||
Astoria Financial Corp. | 4,618,152 | 60,959,607 | |
Washington Federal, Inc. | 2,616,175 | 48,791,664 | |
| 109,751,271 | ||
TOTAL FINANCIALS | 615,626,530 | ||
HEALTH CARE - 6.7% | |||
Health Care Providers & Services - 6.7% | |||
Chemed Corp. | 510,200 | 23,724,300 | |
MEDNAX, Inc. (a) | 591,500 | 33,632,690 | |
Providence Service Corp. (a)(d) | 1,016,495 | 13,051,796 | |
Team Health Holdings, Inc. | 1,300,000 | 19,175,000 | |
VCA Antech, Inc. (a) | 1,240,000 | 31,483,600 | |
| 121,067,386 | ||
INDUSTRIALS - 13.5% | |||
Commercial Services & Supplies - 6.0% | |||
ACCO Brands Corp. (a) | 1,250,923 | 9,632,107 | |
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Commercial Services & Supplies - continued | |||
HNI Corp. (c) | 1,899,671 | $ 47,529,768 | |
United Stationers, Inc. (a) | 939,000 | 51,231,840 | |
| 108,393,715 | ||
Machinery - 2.5% | |||
Blount International, Inc. (a) | 1,854,723 | 20,661,614 | |
Graco, Inc. | 865,000 | 23,086,850 | |
| 43,748,464 | ||
Trading Companies & Distributors - 5.0% | |||
H&E Equipment Services, Inc. (a)(d) | 3,489,408 | 37,022,619 | |
WESCO International, Inc. (a) | 1,925,000 | 53,361,000 | |
| 90,383,619 | ||
TOTAL INDUSTRIALS | 242,525,798 | ||
INFORMATION TECHNOLOGY - 9.9% | |||
Communications Equipment - 2.4% | |||
Polycom, Inc. (a) | 970,000 | 21,757,100 | |
ViaSat, Inc. (a) | 809,472 | 22,122,870 | |
| 43,879,970 | ||
Electronic Equipment & Components - 3.3% | |||
Ingram Micro, Inc. Class A (a) | 1,503,100 | 25,402,390 | |
Macnica, Inc. | 677,400 | 11,233,718 | |
Ryoyo Electro Corp. | 1,272,700 | 10,813,790 | |
SYNNEX Corp. (a) | 409,898 | 10,850,000 | |
| 58,299,898 | ||
Internet Software & Services - 2.4% | |||
DealerTrack Holdings, Inc. (a) | 1,749,434 | 31,437,329 | |
j2 Global Communications, Inc. (a) | 603,149 | 12,388,680 | |
| 43,826,009 | ||
Semiconductors & Semiconductor Equipment - 0.9% | |||
Miraial Co. Ltd. (d) | 570,200 | 15,317,768 | |
Software - 0.9% | |||
MICROS Systems, Inc. (a) | 580,000 | 16,576,400 | |
TOTAL INFORMATION TECHNOLOGY | 177,900,045 | ||
MATERIALS - 7.0% | |||
Chemicals - 0.7% | |||
Spartech Corp. | 1,361,202 | 13,734,528 | |
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Metals & Mining - 6.3% | |||
Carpenter Technology Corp. | 2,009,380 | $ 53,851,384 | |
RTI International Metals, Inc. (a)(d) | 2,392,597 | 59,216,776 | |
| 113,068,160 | ||
TOTAL MATERIALS | 126,802,688 | ||
TELECOMMUNICATION SERVICES - 1.0% | |||
Diversified Telecommunication Services - 1.0% | |||
Cogent Communications Group, Inc. (a) | 1,665,000 | 18,181,800 | |
UTILITIES - 4.8% | |||
Electric Utilities - 2.0% | |||
Westar Energy, Inc. | 1,710,000 | 36,474,300 | |
Gas Utilities - 1.3% | |||
Southwest Gas Corp. | 830,989 | 22,993,466 | |
Independent Power Producers & Energy Traders - 1.5% | |||
RRI Energy, Inc. (a) | 5,600,000 | 27,720,000 | |
TOTAL UTILITIES | 87,187,766 | ||
TOTAL COMMON STOCKS (Cost $1,594,125,230) | 1,751,966,003 | ||
Nonconvertible Preferred Stocks - 2.2% | |||
|
|
|
|
CONSUMER DISCRETIONARY - 0.7% | |||
Household Durables - 0.7% | |||
M/I Homes, Inc. Series A, 9.75% (a) | 730,800 | 11,510,100 | |
FINANCIALS - 1.5% | |||
Real Estate Investment Trusts - 1.5% | |||
Developers Diversified Realty Corp.: | |||
(depositary shares) Series H, 7.375% | 818,790 | 16,334,861 | |
Series I, 7.50% | 542,010 | 10,867,301 | |
| 27,202,162 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $25,252,713) | 38,712,262 | ||
Money Market Funds - 8.2% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.17% (e) | 15,158,848 | $ 15,158,848 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(e) | 132,323,494 | 132,323,494 | |
TOTAL MONEY MARKET FUNDS (Cost $147,482,342) | 147,482,342 | ||
TOTAL INVESTMENT PORTFOLIO - 107.7% (Cost $1,766,860,285) | 1,938,160,607 | ||
NET OTHER ASSETS - (7.7)% | (137,753,096) | ||
NET ASSETS - 100% | $ 1,800,407,511 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated company |
(e) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
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 | $ 21,352 |
Fidelity Securities Lending Cash Central Fund | 197,720 |
Total | $ 219,072 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliates | Value, | Purchases | Sales | Dividend | Value, |
Carpenter Technology Corp. | $ 48,582,409 | $ - | $ 14,222,750 | $ 1,279,465 | $ - |
H&E Equipment Services, Inc. | 17,823,149 | 19,092,190 | - | - | 37,022,619 |
HNI Corp. | 48,476,178 | 4,669,921 | 12,525,138 | 939,645 | - |
Miraial Co. Ltd. | 11,951,237 | - | - | 177,482 | 15,317,768 |
Providence Service Corp. | 5,488,479 | 7,744,742 | - | - | 13,051,796 |
RTI International Metals, Inc. | - | 61,889,471 | 4,810,113 | - | 59,216,776 |
Spartech Corp. | 19,788,775 | 80,848 | 2,807,218 | - | - |
WESCO International, Inc. | 45,676,500 | 7,269,797 | 5,877,924 | - | - |
Western Liberty Bancorp | - | 3,630,400 | - | - | 15,072,000 |
Total | $ 197,786,727 | $ 104,377,369 | $ 40,243,143 | $ 2,396,592 | $ 139,680,959 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $19,890,497 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $151,920,436 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $127,885,454) - See accompanying schedule: Unaffiliated issuers (cost $1,484,926,892) | $ 1,650,997,306 |
|
Fidelity Central Funds (cost $147,482,342) | 147,482,342 |
|
Other affiliated issuers (cost $134,451,051) | 139,680,959 |
|
Total Investments (cost $1,766,860,285) |
| $ 1,938,160,607 |
Receivable for investments sold | 236,239 | |
Receivable for fund shares sold | 3,708,433 | |
Dividends receivable | 1,650,419 | |
Distributions receivable from Fidelity Central Funds | 16,535 | |
Prepaid expenses | 6,715 | |
Receivable from investment adviser for expense reductions | 13,238 | |
Other receivables | 20,459 | |
Total assets | 1,943,812,645 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 6,760,361 | |
Payable for fund shares redeemed | 2,445,680 | |
Accrued management fee | 1,317,855 | |
Distribution fees payable | 60,169 | |
Other affiliated payables | 466,365 | |
Other payables and accrued expenses | 31,210 | |
Collateral on securities loaned, at value | 132,323,494 | |
Total liabilities | 143,405,134 | |
|
|
|
Net Assets | $ 1,800,407,511 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,720,209,220 | |
Undistributed net investment income | 152,847 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (91,252,062) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 171,297,506 | |
Net Assets | $ 1,800,407,511 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 12.56 | |
|
|
|
Maximum offering price per share (100/94.25 of $12.56) | $ 13.33 | |
Class T: | $ 12.47 | |
|
|
|
Maximum offering price per share (100/96.50 of $12.47) | $ 12.92 | |
Class B: | $ 12.26 | |
|
|
|
Class C: | $ 12.27 | |
|
|
|
|
|
|
Small Cap Value: | $ 12.65 | |
|
|
|
Class F: | $ 12.65 | |
|
|
|
Institutional Class: | $ 12.66 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends (including $2,396,592 earned from other affiliated issuers) |
| $ 12,500,182 |
Interest |
| 18,036 |
Income from Fidelity Central Funds |
| 219,072 |
Total income |
| 12,737,290 |
|
|
|
Expenses | ||
Management fee | $ 6,386,783 | |
Performance adjustment | 1,325,098 | |
Transfer agent fees | 2,640,316 | |
Distribution fees | 327,688 | |
Accounting and security lending fees | 322,062 | |
Custodian fees and expenses | 22,075 | |
Independent trustees' compensation | 5,217 | |
Registration fees | 103,021 | |
Audit | 30,165 | |
Legal | 5,603 | |
Interest | 635 | |
Miscellaneous | 13,458 | |
Total expenses before reductions | 11,182,121 | |
Expense reductions | (98,216) | 11,083,905 |
Net investment income (loss) | 1,653,385 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 85,630,649 | |
Other affiliated issuers | 3,071,265 |
|
Foreign currency transactions | 19,631 | |
Capital gain distributions from Fidelity Central Funds | 9,755 | |
Total net realized gain (loss) |
| 88,731,300 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 119,319,234 | |
Assets and liabilities in foreign currencies | (3,940) | |
Total change in net unrealized appreciation (depreciation) |
| 119,315,294 |
Net gain (loss) | 208,046,594 | |
Net increase (decrease) in net assets resulting from operations | $ 209,699,979 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 1,653,385 | $ 11,185,799 |
Net realized gain (loss) | 88,731,300 | (175,985,663) |
Change in net unrealized appreciation (depreciation) | 119,315,294 | 144,791,983 |
Net increase (decrease) in net assets resulting | 209,699,979 | (20,007,881) |
Distributions to shareholders from net investment income | (6,560,120) | (8,301,273) |
Distributions to shareholders from net realized gain | - | (12,095,172) |
Total distributions | (6,560,120) | (20,396,445) |
Share transactions - net increase (decrease) | (14,302,253) | 392,456,300 |
Redemption fees | 278,381 | 448,503 |
Total increase (decrease) in net assets | 189,115,987 | 352,500,477 |
|
|
|
Net Assets | ||
Beginning of period | 1,611,291,524 | 1,258,791,047 |
End of period (including undistributed net investment income of $152,847 and undistributed net investment income of $5,059,582, respectively) | $ 1,800,407,511 | $ 1,611,291,524 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 H | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 11.13 | $ 11.82 | $ 14.34 | $ 13.17 | $ 12.80 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | - J | .08 | (.01) | (.06) | (.03) | (.04) |
Net realized and unrealized gain (loss) | 1.46 | (.60) | (1.98) | 1.90 | .74 | 2.84 |
Total from investment operations | 1.46 | (.52) | (1.99) | 1.84 | .71 | 2.80 |
Distributions from net investment income | (.03) | (.06) | - | - | - | (.01) |
Distributions from net realized gain | - | (.11) | (.53) | (.67) | (.35) | - |
Total distributions | (.03) | (.17) | (.53) | (.67) | (.35) | (.01) |
Redemption fees added to paid in capital E | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 12.56 | $ 11.13 | $ 11.82 | $ 14.34 | $ 13.17 | $ 12.80 |
Total Return B, C, D | 13.14% | (4.37)% | (14.35)% | 14.59% | 5.72% | 28.06% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.51% A | 1.45% | 1.43% | 1.45% | 1.51% | 1.46% A |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% | 1.40% | 1.40% | 1.44% A |
Expenses net of all reductions | 1.40% A | 1.40% | 1.40% | 1.40% | 1.36% | 1.38% A |
Net investment income (loss) | .02% A | .81% | (.05)% | (.44)% | (.24)% | (.46)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 71,120 | $ 55,029 | $ 52,446 | $ 61,357 | $ 39,931 | $ 9,390 |
Portfolio turnover rate G | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period November 3, 2004 (commencement of operations) to July 31, 2005. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 H | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 11.05 | $ 11.74 | $ 14.28 | $ 13.13 | $ 12.78 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.01) | .05 | (.04) | (.10) | (.07) | (.06) |
Net realized and unrealized gain (loss) | 1.44 | (.59) | (1.97) | 1.90 | .74 | 2.83 |
Total from investment operations | 1.43 | (.54) | (2.01) | 1.80 | .67 | 2.77 |
Distributions from net investment income | (.01) | (.04) | - | - | - | - |
Distributions from net realized gain | - | (.11) | (.53) | (.65) | (.33) | - |
Total distributions | (.01) | (.15) | (.53) | (.65) | (.33) | - |
Redemption fees added to paid in capital E | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 12.47 | $ 11.05 | $ 11.74 | $ 14.28 | $ 13.13 | $ 12.78 |
Total Return B, C, D | 12.98% | (4.57)% | (14.58)% | 14.34% | 5.47% | 27.80% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.76% A | 1.70% | 1.68% | 1.66% | 1.67% | 1.72% A |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.65% | 1.68% A |
Expenses net of all reductions | 1.65% A | 1.65% | 1.65% | 1.65% | 1.61% | 1.62% A |
Net investment income (loss) | (.23)% A | .56% | (.30)% | (.69)% | (.49)% | (.70)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 33,795 | $ 28,534 | $ 32,091 | $ 51,518 | $ 45,460 | $ 12,725 |
Portfolio turnover rate G | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period November 3, 2004 (commencement of operations) to July 31, 2005. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 H | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.88 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.73 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.04) | .01 | (.10) | (.17) | (.13) | (.10) |
Net realized and unrealized gain (loss) | 1.42 | (.59) | (1.96) | 1.90 | .74 | 2.82 |
Total from investment operations | 1.38 | (.58) | (2.06) | 1.73 | .61 | 2.72 |
Distributions from net investment income | - | (.03) | - | - | - | - |
Distributions from net realized gain | - | (.11) | (.53) | (.61) | (.28) | - |
Total distributions | - | (.14) | (.53) | (.61) | (.28) | - |
Redemption fees added to paid in capital E | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 12.26 | $ 10.88 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.73 |
Total Return B, C, D | 12.68% | (5.05)% | (15.04)% | 13.78% | 4.97% | 27.30% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 2.26% A | 2.20% | 2.18% | 2.20% | 2.26% | 2.24% A |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.19% A |
Expenses net of all reductions | 2.15% A | 2.15% | 2.15% | 2.15% | 2.11% | 2.13% A |
Net investment income (loss) | (.73)% A | .06% | (.80)% | (1.19)% | (.99)% | (1.21)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 8,246 | $ 7,153 | $ 7,886 | $ 12,075 | $ 10,214 | $ 3,931 |
Portfolio turnover rate G | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period November 3, 2004 (commencement of operations) to July 31, 2005. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 H | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.89 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.74 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.04) | .01 | (.10) | (.17) | (.13) | (.10) |
Net realized and unrealized gain (loss) | 1.42 | (.58) | (1.96) | 1.90 | .74 | 2.83 |
Total from investment operations | 1.38 | (.57) | (2.06) | 1.73 | .61 | 2.73 |
Distributions from net investment income | - | (.03) | - | - | - | - |
Distributions from net realized gain | - | (.11) | (.53) | (.61) | (.29) | - |
Total distributions | - | (.14) | (.53) | (.61) | (.29) | - |
Redemption fees added to paid in capital E | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 12.27 | $ 10.89 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.74 |
Total Return B, C, D | 12.67% | (4.98)% | (15.04)% | 13.77% | 4.92% | 27.40% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 2.26% A | 2.20% | 2.18% | 2.20% | 2.22% | 2.17% A |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.17% A |
Expenses net of all reductions | 2.14% A | 2.15% | 2.15% | 2.15% | 2.11% | 2.11% A |
Net investment income (loss) | (.73)% A | .06% | (.80)% | (1.19)% | (.99)% | (1.19)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 27,769 | $ 21,345 | $ 20,924 | $ 34,155 | $ 26,791 | $ 11,732 |
Portfolio turnover rate G | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period November 3, 2004 (commencement of operations) to July 31, 2005. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Value
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 11.22 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .01 | .10 | .03 | (.02) | .01 | (.01) |
Net realized and unrealized gain (loss) | 1.47 | (.60) | (1.99) | 1.91 | .74 | 2.84 |
Total from investment operations | 1.48 | (.50) | (1.96) | 1.89 | .75 | 2.83 |
Distributions from net investment income | (.05) | (.08) | - | - | (.01) | (.01) |
Distributions from net realized gain | - | (.11) | (.56) | (.68) | (.36) | - |
Total distributions | (.05) | (.19) | (.56) | (.68) | (.37) | (.01) |
Redemption fees added to paid in capital D | - I | - I | - I | - I | .01 | .01 |
Net asset value, end of period | $ 12.65 | $ 11.22 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 |
Total Return B, C | 13.18% | (4.15)% | (14.10)% | 14.96% | 6.07% | 28.36% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | 1.21% A | 1.20% | 1.14% | 1.11% | 1.09% | 1.05% A |
Expenses net of fee waivers, if any | 1.21% A | 1.20% | 1.14% | 1.11% | 1.09% | 1.05% A |
Expenses net of all reductions | 1.20% A | 1.20% | 1.13% | 1.11% | 1.06% | .99% A |
Net investment income (loss) | .21% A | 1.01% | .22% | (.15)% | .06% | (.08)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 1,580,773 | $ 1,488,736 | $ 1,136,860 | $ 1,233,808 | $ 957,720 | $ 582,689 |
Portfolio turnover rate F | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period November 3, 2004 (commencement of operations) to July 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended | Year ended July 31, |
(Unaudited) | 2009 H | |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 11.22 | $ 10.27 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .03 | .01 |
Net realized and unrealized gain (loss) | 1.47 | .94 G |
Total from investment operations | 1.50 | .95 |
Distributions from net investment income | (.07) | - |
Redemption fees added to paid in capital D, J | - | - |
Net asset value, end of period | $ 12.65 | $ 11.22 |
Total Return B, C | 13.36% | 9.25% |
Ratios to Average Net Assets E, I |
|
|
Expenses before reductions | .91% A | .86% A |
Expenses net of fee waivers, if any | .91% A | .86% A |
Expenses net of all reductions | .91% A | .86% A |
Net investment income (loss) | .51% A | .64% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 43,748 | $ 159 |
Portfolio turnover rate F | 65% A | 51% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. H For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 11.24 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .02 | .10 | .03 | (.02) | .01 | (.01) |
Net realized and unrealized gain (loss) | 1.46 | (.59) | (1.99) | 1.91 | .74 | 2.84 |
Total from investment operations | 1.48 | (.49) | (1.96) | 1.89 | .75 | 2.83 |
Distributions from net investment income | (.06) | (.07) | - | - | (.01) | (.01) |
Distributions from net realized gain | - | (.11) | (.56) | (.68) | (.36) | - |
Total distributions | (.06) | (.18) | (.56) | (.68) | (.37) | (.01) |
Redemption fees added to paid in capital D | - I | - I | - I | - I | .01 | .01 |
Net asset value, end of period | $ 12.66 | $ 11.24 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 |
Total Return B, C | 13.20% | (4.04)% | (14.10)% | 14.99% | 6.08% | 28.36% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | 1.14% A | 1.20% | 1.13% | 1.10% | 1.08% | 1.07% A |
Expenses net of fee waivers, if any | 1.14% A | 1.15% | 1.13% | 1.10% | 1.08% | 1.07% A |
Expenses net of all reductions | 1.14% A | 1.15% | 1.13% | 1.10% | 1.05% | 1.01% A |
Net investment income (loss) | .28% A | 1.06% | .22% | (.13)% | .08% | (.10)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 34,956 | $ 10,336 | $ 8,584 | $ 11,594 | $ 9,422 | $ 3,761 |
Portfolio turnover rate F | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period November 3, 2004 (commencement of operations) to July 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
1. Organization.
Fidelity Small Cap Value Fund (the Fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, Small Cap Value, Class F and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, market discount, partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 297,941,423 |
|
Gross unrealized depreciation | (130,466,321) |
|
Net unrealized appreciation (depreciation) | $ 167,475,102 |
|
|
|
|
Tax cost | $ 1,770,685,505 |
|
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $566,535,496 and $583,318,311, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class of the Fund, Small Cap Value as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .86% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution | Service | Paid to | Retained |
Class A | -% | .25% | $ 82,280 | $ 3,258 |
Class T | .25% | .25% | 80,386 | - |
Class B | .75% | .25% | 39,917 | 29,938 |
Class C | .75% | .25% | 125,105 | 28,796 |
|
|
| $ 327,688 | $ 61,992 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 16,612 |
Class T | 3,124 |
Class B* | 9,944 |
Class C* | 605 |
| $ 30,285 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of each class, except for Class F. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each applicable class were as follows:
| Amount | % of |
Class A | $ 112,083 | .34 |
Class T | 55,709 | .35 |
Class B | 13,679 | .34 |
Class C | 42,670 | .34 |
Small Cap Value | 2,386,084 | .29 |
Institutional Class | 30,091 | .23 |
| $ 2,640,316 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $11,830 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily | Weighted Average | Interest |
Borrower | $ 7,401,500 | .39% | $ 635 |
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $3,436 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $197,720.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | 1.40% | $ 34,879 |
Class T | 1.65% | 17,921 |
Class B | 2.15% | 4,312 |
Class C | 2.15% | 13,639 |
|
| $ 70,751 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $27,462 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $3.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 159,193 | $ 252,162 |
Class T | 36,903 | 111,704 |
Class B | - | 20,177 |
Class C | - | 45,207 |
Small Cap Value | 6,230,380 | 7,822,387 |
Class F | 28,266 | - |
Institutional Class | 105,378 | 49,636 |
Total | $ 6,560,120 | $ 8,301,273 |
Semiannual Report
9. Distributions to Shareholders - continued
Six months ended | Year ended | |
From net realized gain |
|
|
Class A | $ - | $ 496,925 |
Class T | - | 350,121 |
Class B | - | 77,046 |
Class C | - | 207,577 |
Small Cap Value | - | 10,883,170 |
Institutional Class | - | 80,333 |
Total | $ - | $ 12,095,172 |
A Distributions for Class F are for the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,675,860 | 2,028,986 | $ 20,287,531 | $ 19,478,233 |
Reinvestment of distributions | 12,276 | 64,970 | 146,358 | 694,477 |
Shares redeemed | (969,223) | (1,588,437) | (11,841,680) | (14,658,645) |
Net increase (decrease) | 718,913 | 505,519 | $ 8,592,209 | $ 5,514,065 |
Class T |
|
|
|
|
Shares sold | 538,429 | 1,489,054 | $ 6,425,686 | $ 15,806,614 |
Reinvestment of distributions | 3,030 | 40,641 | 35,906 | 449,360 |
Shares redeemed | (413,582) | (1,680,727) | (5,030,046) | (14,685,646) |
Net increase (decrease) | 127,877 | (151,032) | $ 1,431,546 | $ 1,570,328 |
Class B |
|
|
|
|
Shares sold | 102,176 | 305,827 | $ 1,205,333 | $ 3,051,319 |
Reinvestment of distributions | - | 7,759 | - | 85,943 |
Shares redeemed | (87,140) | (335,978) | (1,036,071) | (2,971,686) |
Net increase (decrease) | 15,036 | (22,392) | $ 169,262 | $ 165,576 |
Class C |
|
|
|
|
Shares sold | 507,548 | 832,906 | $ 6,054,371 | $ 7,981,000 |
Reinvestment of distributions | - | 19,410 | - | 217,621 |
Shares redeemed | (204,893) | (694,752) | (2,449,563) | (6,287,773) |
Net increase (decrease) | 302,655 | 157,564 | $ 3,604,808 | $ 1,910,848 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Small Cap Value |
|
|
|
|
Shares sold | 21,234,724 | 61,277,579 | $ 258,095,114 | $ 600,357,815 |
Reinvestment of distributions | 507,903 | 1,741,583 | 6,101,827 | 18,397,974 |
Shares redeemed | (29,529,999) | (25,782,005) | (357,109,003) | (237,589,067) |
Net increase (decrease) | (7,787,372) | 37,237,157 | $ (92,912,062) | $ 381,166,722 |
Class F |
|
|
|
|
Shares sold | 3,524,076 | 14,205 | $ 43,507,553 | $ 144,857 |
Reinvestment of distributions | 2,350 | - | 28,266 | - |
Shares redeemed | (83,353) | (18) | (1,041,511) | (181) |
Net increase (decrease) | 3,443,073 | 14,187 | $ 42,494,308 | $ 144,676 |
Institutional Class |
|
|
|
|
Shares sold | 2,081,830 | 479,087 | $ 25,294,424 | $ 4,626,811 |
Reinvestment of distributions | 7,512 | 8,812 | 90,344 | 93,632 |
Shares redeemed | (248,838) | (288,597) | (3,067,092) | (2,736,358) |
Net increase (decrease) | 1,840,504 | 199,302 | $ 22,317,676 | $ 1,984,085 |
A Share transactions for Class F are for the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
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, the Fidelity Freedom Funds were the owners of record, in the aggregate, of approximately 38% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
Fidelity Research & Analysis Company
FIL Investment Advisors
FIL Investments (Japan) Limited
FIL Investment Advisors (U.K.) Ltd.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
ASCV-USAN-0310 1.803737.106
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor
Small Cap Value
Fund - Institutional Class
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Institutional Class
is a class of Fidelity®
Small Cap Value Fund
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,131.40 | $ 7.52 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,129.80 | $ 8.86 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,126.80 | $ 11.53 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,126.70 | $ 11.52 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Small Cap Value | 1.21% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,131.80 | $ 6.50 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.11 | $ 6.16 |
Class F | .91% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,133.60 | $ 4.89 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.62 | $ 4.63 |
Institutional Class | 1.14% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,132.00 | $ 6.13 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.46 | $ 5.80 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Astoria Financial Corp. | 3.4 | 2.8 |
RTI International Metals, Inc. | 3.3 | 0.0 |
Carpenter Technology Corp. | 3.0 | 3.0 |
WESCO International, Inc. | 3.0 | 2.9 |
United Stationers, Inc. | 2.9 | 3.0 |
Alexandria Real Estate Equities, Inc. | 2.8 | 2.6 |
Platinum Underwriters Holdings Ltd. | 2.8 | 0.0 |
Washington Federal, Inc. | 2.7 | 1.7 |
Superior Energy Services, Inc. | 2.7 | 2.0 |
HNI Corp. | 2.6 | 3.0 |
| 29.2 | |
Top Five Market Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Financials | 35.7 | 33.4 |
Industrials | 13.5 | 15.9 |
Consumer Discretionary | 11.3 | 12.6 |
Information Technology | 9.9 | 11.6 |
Materials | 7.0 | 4.8 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
![]() | Stocks 99.5% |
| ![]() | Stocks 98.8% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 9.6% |
| ** Foreign investments | 8.1% |
|
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.3% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 10.6% | |||
Diversified Consumer Services - 2.7% | |||
Matthews International Corp. Class A | 590,187 | $ 19,977,830 | |
Regis Corp. (c) | 1,745,882 | 27,811,900 | |
| 47,789,730 | ||
Household Durables - 5.2% | |||
M.D.C. Holdings, Inc. | 960,300 | 32,266,080 | |
Meritage Homes Corp. (a) | 1,509,960 | 33,808,004 | |
Ryland Group, Inc. | 1,262,448 | 28,102,092 | |
| 94,176,176 | ||
Specialty Retail - 1.8% | |||
Asbury Automotive Group, Inc. (a) | 1,455,159 | 16,108,610 | |
Tsutsumi Jewelry Co. Ltd. | 791,400 | 15,096,829 | |
| 31,205,439 | ||
Textiles, Apparel & Luxury Goods - 0.9% | |||
Iconix Brand Group, Inc. (a) | 1,330,087 | 16,785,698 | |
TOTAL CONSUMER DISCRETIONARY | 189,957,043 | ||
CONSUMER STAPLES - 5.2% | |||
Food & Staples Retailing - 5.2% | |||
BJ's Wholesale Club, Inc. (a) | 1,290,000 | 43,589,100 | |
Casey's General Stores, Inc. | 1,235,183 | 37,895,414 | |
Ingles Markets, Inc. Class A | 838,531 | 11,873,599 | |
| 93,358,113 | ||
ENERGY - 4.4% | |||
Energy Equipment & Services - 2.7% | |||
Superior Energy Services, Inc. (a) | 2,091,700 | 48,046,349 | |
Oil, Gas & Consumable Fuels - 1.7% | |||
Mariner Energy, Inc. (a) | 2,166,954 | 31,312,485 | |
TOTAL ENERGY | 79,358,834 | ||
FINANCIALS - 34.2% | |||
Capital Markets - 3.5% | |||
optionsXpress Holdings, Inc. | 1,955,000 | 28,054,250 | |
Sparx Group Co. Ltd. (a) | 1,940 | 253,595 | |
TradeStation Group, Inc. (a) | 2,062,291 | 14,580,397 | |
Waddell & Reed Financial, Inc. Class A | 640,000 | 20,051,200 | |
| 62,939,442 | ||
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Commercial Banks - 10.7% | |||
Associated Banc-Corp. (c) | 2,692,383 | $ 34,247,112 | |
CapitalSource, Inc. | 6,395,000 | 30,632,050 | |
City National Corp. (c) | 784,900 | 38,766,211 | |
PacWest Bancorp (c) | 1,625,000 | 33,718,750 | |
TCF Financial Corp. (c) | 2,705,500 | 39,608,520 | |
Western Liberty Bancorp (a)(d) | 2,400,000 | 15,072,000 | |
| 192,044,643 | ||
Insurance - 6.5% | |||
Aspen Insurance Holdings Ltd. | 870,200 | 23,173,426 | |
Max Capital Group Ltd. | 1,957,411 | 44,080,896 | |
Platinum Underwriters Holdings Ltd. | 1,396,975 | 50,654,314 | |
| 117,908,636 | ||
Real Estate Investment Trusts - 4.9% | |||
Alexandria Real Estate Equities, Inc. (c) | 848,300 | 50,668,959 | |
Highwoods Properties, Inc. (SBI) | 670,330 | 20,250,669 | |
National Retail Properties, Inc. | 840,000 | 16,968,000 | |
| 87,887,628 | ||
Real Estate Management & Development - 2.5% | |||
Jones Lang LaSalle, Inc. | 791,000 | 45,094,910 | |
Thrifts & Mortgage Finance - 6.1% | |||
Astoria Financial Corp. | 4,618,152 | 60,959,607 | |
Washington Federal, Inc. | 2,616,175 | 48,791,664 | |
| 109,751,271 | ||
TOTAL FINANCIALS | 615,626,530 | ||
HEALTH CARE - 6.7% | |||
Health Care Providers & Services - 6.7% | |||
Chemed Corp. | 510,200 | 23,724,300 | |
MEDNAX, Inc. (a) | 591,500 | 33,632,690 | |
Providence Service Corp. (a)(d) | 1,016,495 | 13,051,796 | |
Team Health Holdings, Inc. | 1,300,000 | 19,175,000 | |
VCA Antech, Inc. (a) | 1,240,000 | 31,483,600 | |
| 121,067,386 | ||
INDUSTRIALS - 13.5% | |||
Commercial Services & Supplies - 6.0% | |||
ACCO Brands Corp. (a) | 1,250,923 | 9,632,107 | |
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Commercial Services & Supplies - continued | |||
HNI Corp. (c) | 1,899,671 | $ 47,529,768 | |
United Stationers, Inc. (a) | 939,000 | 51,231,840 | |
| 108,393,715 | ||
Machinery - 2.5% | |||
Blount International, Inc. (a) | 1,854,723 | 20,661,614 | |
Graco, Inc. | 865,000 | 23,086,850 | |
| 43,748,464 | ||
Trading Companies & Distributors - 5.0% | |||
H&E Equipment Services, Inc. (a)(d) | 3,489,408 | 37,022,619 | |
WESCO International, Inc. (a) | 1,925,000 | 53,361,000 | |
| 90,383,619 | ||
TOTAL INDUSTRIALS | 242,525,798 | ||
INFORMATION TECHNOLOGY - 9.9% | |||
Communications Equipment - 2.4% | |||
Polycom, Inc. (a) | 970,000 | 21,757,100 | |
ViaSat, Inc. (a) | 809,472 | 22,122,870 | |
| 43,879,970 | ||
Electronic Equipment & Components - 3.3% | |||
Ingram Micro, Inc. Class A (a) | 1,503,100 | 25,402,390 | |
Macnica, Inc. | 677,400 | 11,233,718 | |
Ryoyo Electro Corp. | 1,272,700 | 10,813,790 | |
SYNNEX Corp. (a) | 409,898 | 10,850,000 | |
| 58,299,898 | ||
Internet Software & Services - 2.4% | |||
DealerTrack Holdings, Inc. (a) | 1,749,434 | 31,437,329 | |
j2 Global Communications, Inc. (a) | 603,149 | 12,388,680 | |
| 43,826,009 | ||
Semiconductors & Semiconductor Equipment - 0.9% | |||
Miraial Co. Ltd. (d) | 570,200 | 15,317,768 | |
Software - 0.9% | |||
MICROS Systems, Inc. (a) | 580,000 | 16,576,400 | |
TOTAL INFORMATION TECHNOLOGY | 177,900,045 | ||
MATERIALS - 7.0% | |||
Chemicals - 0.7% | |||
Spartech Corp. | 1,361,202 | 13,734,528 | |
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Metals & Mining - 6.3% | |||
Carpenter Technology Corp. | 2,009,380 | $ 53,851,384 | |
RTI International Metals, Inc. (a)(d) | 2,392,597 | 59,216,776 | |
| 113,068,160 | ||
TOTAL MATERIALS | 126,802,688 | ||
TELECOMMUNICATION SERVICES - 1.0% | |||
Diversified Telecommunication Services - 1.0% | |||
Cogent Communications Group, Inc. (a) | 1,665,000 | 18,181,800 | |
UTILITIES - 4.8% | |||
Electric Utilities - 2.0% | |||
Westar Energy, Inc. | 1,710,000 | 36,474,300 | |
Gas Utilities - 1.3% | |||
Southwest Gas Corp. | 830,989 | 22,993,466 | |
Independent Power Producers & Energy Traders - 1.5% | |||
RRI Energy, Inc. (a) | 5,600,000 | 27,720,000 | |
TOTAL UTILITIES | 87,187,766 | ||
TOTAL COMMON STOCKS (Cost $1,594,125,230) | 1,751,966,003 | ||
Nonconvertible Preferred Stocks - 2.2% | |||
|
|
|
|
CONSUMER DISCRETIONARY - 0.7% | |||
Household Durables - 0.7% | |||
M/I Homes, Inc. Series A, 9.75% (a) | 730,800 | 11,510,100 | |
FINANCIALS - 1.5% | |||
Real Estate Investment Trusts - 1.5% | |||
Developers Diversified Realty Corp.: | |||
(depositary shares) Series H, 7.375% | 818,790 | 16,334,861 | |
Series I, 7.50% | 542,010 | 10,867,301 | |
| 27,202,162 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $25,252,713) | 38,712,262 | ||
Money Market Funds - 8.2% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.17% (e) | 15,158,848 | $ 15,158,848 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(e) | 132,323,494 | 132,323,494 | |
TOTAL MONEY MARKET FUNDS (Cost $147,482,342) | 147,482,342 | ||
TOTAL INVESTMENT PORTFOLIO - 107.7% (Cost $1,766,860,285) | 1,938,160,607 | ||
NET OTHER ASSETS - (7.7)% | (137,753,096) | ||
NET ASSETS - 100% | $ 1,800,407,511 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated company |
(e) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
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 | $ 21,352 |
Fidelity Securities Lending Cash Central Fund | 197,720 |
Total | $ 219,072 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliates | Value, | Purchases | Sales | Dividend | Value, |
Carpenter Technology Corp. | $ 48,582,409 | $ - | $ 14,222,750 | $ 1,279,465 | $ - |
H&E Equipment Services, Inc. | 17,823,149 | 19,092,190 | - | - | 37,022,619 |
HNI Corp. | 48,476,178 | 4,669,921 | 12,525,138 | 939,645 | - |
Miraial Co. Ltd. | 11,951,237 | - | - | 177,482 | 15,317,768 |
Providence Service Corp. | 5,488,479 | 7,744,742 | - | - | 13,051,796 |
RTI International Metals, Inc. | - | 61,889,471 | 4,810,113 | - | 59,216,776 |
Spartech Corp. | 19,788,775 | 80,848 | 2,807,218 | - | - |
WESCO International, Inc. | 45,676,500 | 7,269,797 | 5,877,924 | - | - |
Western Liberty Bancorp | - | 3,630,400 | - | - | 15,072,000 |
Total | $ 197,786,727 | $ 104,377,369 | $ 40,243,143 | $ 2,396,592 | $ 139,680,959 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $19,890,497 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $151,920,436 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $127,885,454) - See accompanying schedule: Unaffiliated issuers (cost $1,484,926,892) | $ 1,650,997,306 |
|
Fidelity Central Funds (cost $147,482,342) | 147,482,342 |
|
Other affiliated issuers (cost $134,451,051) | 139,680,959 |
|
Total Investments (cost $1,766,860,285) |
| $ 1,938,160,607 |
Receivable for investments sold | 236,239 | |
Receivable for fund shares sold | 3,708,433 | |
Dividends receivable | 1,650,419 | |
Distributions receivable from Fidelity Central Funds | 16,535 | |
Prepaid expenses | 6,715 | |
Receivable from investment adviser for expense reductions | 13,238 | |
Other receivables | 20,459 | |
Total assets | 1,943,812,645 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 6,760,361 | |
Payable for fund shares redeemed | 2,445,680 | |
Accrued management fee | 1,317,855 | |
Distribution fees payable | 60,169 | |
Other affiliated payables | 466,365 | |
Other payables and accrued expenses | 31,210 | |
Collateral on securities loaned, at value | 132,323,494 | |
Total liabilities | 143,405,134 | |
|
|
|
Net Assets | $ 1,800,407,511 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,720,209,220 | |
Undistributed net investment income | 152,847 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (91,252,062) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 171,297,506 | |
Net Assets | $ 1,800,407,511 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 12.56 | |
|
|
|
Maximum offering price per share (100/94.25 of $12.56) | $ 13.33 | |
Class T: | $ 12.47 | |
|
|
|
Maximum offering price per share (100/96.50 of $12.47) | $ 12.92 | |
Class B: | $ 12.26 | |
|
|
|
Class C: | $ 12.27 | |
|
|
|
|
|
|
Small Cap Value: | $ 12.65 | |
|
|
|
Class F: | $ 12.65 | |
|
|
|
Institutional Class: | $ 12.66 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends (including $2,396,592 earned from other affiliated issuers) |
| $ 12,500,182 |
Interest |
| 18,036 |
Income from Fidelity Central Funds |
| 219,072 |
Total income |
| 12,737,290 |
|
|
|
Expenses | ||
Management fee | $ 6,386,783 | |
Performance adjustment | 1,325,098 | |
Transfer agent fees | 2,640,316 | |
Distribution fees | 327,688 | |
Accounting and security lending fees | 322,062 | |
Custodian fees and expenses | 22,075 | |
Independent trustees' compensation | 5,217 | |
Registration fees | 103,021 | |
Audit | 30,165 | |
Legal | 5,603 | |
Interest | 635 | |
Miscellaneous | 13,458 | |
Total expenses before reductions | 11,182,121 | |
Expense reductions | (98,216) | 11,083,905 |
Net investment income (loss) | 1,653,385 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 85,630,649 | |
Other affiliated issuers | 3,071,265 |
|
Foreign currency transactions | 19,631 | |
Capital gain distributions from Fidelity Central Funds | 9,755 | |
Total net realized gain (loss) |
| 88,731,300 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 119,319,234 | |
Assets and liabilities in foreign currencies | (3,940) | |
Total change in net unrealized appreciation (depreciation) |
| 119,315,294 |
Net gain (loss) | 208,046,594 | |
Net increase (decrease) in net assets resulting from operations | $ 209,699,979 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 1,653,385 | $ 11,185,799 |
Net realized gain (loss) | 88,731,300 | (175,985,663) |
Change in net unrealized appreciation (depreciation) | 119,315,294 | 144,791,983 |
Net increase (decrease) in net assets resulting | 209,699,979 | (20,007,881) |
Distributions to shareholders from net investment income | (6,560,120) | (8,301,273) |
Distributions to shareholders from net realized gain | - | (12,095,172) |
Total distributions | (6,560,120) | (20,396,445) |
Share transactions - net increase (decrease) | (14,302,253) | 392,456,300 |
Redemption fees | 278,381 | 448,503 |
Total increase (decrease) in net assets | 189,115,987 | 352,500,477 |
|
|
|
Net Assets | ||
Beginning of period | 1,611,291,524 | 1,258,791,047 |
End of period (including undistributed net investment income of $152,847 and undistributed net investment income of $5,059,582, respectively) | $ 1,800,407,511 | $ 1,611,291,524 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 H | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 11.13 | $ 11.82 | $ 14.34 | $ 13.17 | $ 12.80 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | - J | .08 | (.01) | (.06) | (.03) | (.04) |
Net realized and unrealized gain (loss) | 1.46 | (.60) | (1.98) | 1.90 | .74 | 2.84 |
Total from investment operations | 1.46 | (.52) | (1.99) | 1.84 | .71 | 2.80 |
Distributions from net investment income | (.03) | (.06) | - | - | - | (.01) |
Distributions from net realized gain | - | (.11) | (.53) | (.67) | (.35) | - |
Total distributions | (.03) | (.17) | (.53) | (.67) | (.35) | (.01) |
Redemption fees added to paid in capital E | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 12.56 | $ 11.13 | $ 11.82 | $ 14.34 | $ 13.17 | $ 12.80 |
Total Return B, C, D | 13.14% | (4.37)% | (14.35)% | 14.59% | 5.72% | 28.06% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.51% A | 1.45% | 1.43% | 1.45% | 1.51% | 1.46% A |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% | 1.40% | 1.40% | 1.44% A |
Expenses net of all reductions | 1.40% A | 1.40% | 1.40% | 1.40% | 1.36% | 1.38% A |
Net investment income (loss) | .02% A | .81% | (.05)% | (.44)% | (.24)% | (.46)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 71,120 | $ 55,029 | $ 52,446 | $ 61,357 | $ 39,931 | $ 9,390 |
Portfolio turnover rate G | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period November 3, 2004 (commencement of operations) to July 31, 2005. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 H | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 11.05 | $ 11.74 | $ 14.28 | $ 13.13 | $ 12.78 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.01) | .05 | (.04) | (.10) | (.07) | (.06) |
Net realized and unrealized gain (loss) | 1.44 | (.59) | (1.97) | 1.90 | .74 | 2.83 |
Total from investment operations | 1.43 | (.54) | (2.01) | 1.80 | .67 | 2.77 |
Distributions from net investment income | (.01) | (.04) | - | - | - | - |
Distributions from net realized gain | - | (.11) | (.53) | (.65) | (.33) | - |
Total distributions | (.01) | (.15) | (.53) | (.65) | (.33) | - |
Redemption fees added to paid in capital E | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 12.47 | $ 11.05 | $ 11.74 | $ 14.28 | $ 13.13 | $ 12.78 |
Total Return B, C, D | 12.98% | (4.57)% | (14.58)% | 14.34% | 5.47% | 27.80% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 1.76% A | 1.70% | 1.68% | 1.66% | 1.67% | 1.72% A |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.65% | 1.68% A |
Expenses net of all reductions | 1.65% A | 1.65% | 1.65% | 1.65% | 1.61% | 1.62% A |
Net investment income (loss) | (.23)% A | .56% | (.30)% | (.69)% | (.49)% | (.70)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 33,795 | $ 28,534 | $ 32,091 | $ 51,518 | $ 45,460 | $ 12,725 |
Portfolio turnover rate G | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period November 3, 2004 (commencement of operations) to July 31, 2005. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 H | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.88 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.73 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.04) | .01 | (.10) | (.17) | (.13) | (.10) |
Net realized and unrealized gain (loss) | 1.42 | (.59) | (1.96) | 1.90 | .74 | 2.82 |
Total from investment operations | 1.38 | (.58) | (2.06) | 1.73 | .61 | 2.72 |
Distributions from net investment income | - | (.03) | - | - | - | - |
Distributions from net realized gain | - | (.11) | (.53) | (.61) | (.28) | - |
Total distributions | - | (.14) | (.53) | (.61) | (.28) | - |
Redemption fees added to paid in capital E | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 12.26 | $ 10.88 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.73 |
Total Return B, C, D | 12.68% | (5.05)% | (15.04)% | 13.78% | 4.97% | 27.30% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 2.26% A | 2.20% | 2.18% | 2.20% | 2.26% | 2.24% A |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.19% A |
Expenses net of all reductions | 2.15% A | 2.15% | 2.15% | 2.15% | 2.11% | 2.13% A |
Net investment income (loss) | (.73)% A | .06% | (.80)% | (1.19)% | (.99)% | (1.21)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 8,246 | $ 7,153 | $ 7,886 | $ 12,075 | $ 10,214 | $ 3,931 |
Portfolio turnover rate G | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period November 3, 2004 (commencement of operations) to July 31, 2005. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 H | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.89 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.74 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | (.04) | .01 | (.10) | (.17) | (.13) | (.10) |
Net realized and unrealized gain (loss) | 1.42 | (.58) | (1.96) | 1.90 | .74 | 2.83 |
Total from investment operations | 1.38 | (.57) | (2.06) | 1.73 | .61 | 2.73 |
Distributions from net investment income | - | (.03) | - | - | - | - |
Distributions from net realized gain | - | (.11) | (.53) | (.61) | (.29) | - |
Total distributions | - | (.14) | (.53) | (.61) | (.29) | - |
Redemption fees added to paid in capital E | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 12.27 | $ 10.89 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.74 |
Total Return B, C, D | 12.67% | (4.98)% | (15.04)% | 13.77% | 4.92% | 27.40% |
Ratios to Average Net Assets F, I |
|
|
|
|
| |
Expenses before reductions | 2.26% A | 2.20% | 2.18% | 2.20% | 2.22% | 2.17% A |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.17% A |
Expenses net of all reductions | 2.14% A | 2.15% | 2.15% | 2.15% | 2.11% | 2.11% A |
Net investment income (loss) | (.73)% A | .06% | (.80)% | (1.19)% | (.99)% | (1.19)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 27,769 | $ 21,345 | $ 20,924 | $ 34,155 | $ 26,791 | $ 11,732 |
Portfolio turnover rate G | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period November 3, 2004 (commencement of operations) to July 31, 2005. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Value
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 11.22 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 | $ 10.00 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .01 | .10 | .03 | (.02) | .01 | (.01) |
Net realized and unrealized gain (loss) | 1.47 | (.60) | (1.99) | 1.91 | .74 | 2.84 |
Total from investment operations | 1.48 | (.50) | (1.96) | 1.89 | .75 | 2.83 |
Distributions from net investment income | (.05) | (.08) | - | - | (.01) | (.01) |
Distributions from net realized gain | - | (.11) | (.56) | (.68) | (.36) | - |
Total distributions | (.05) | (.19) | (.56) | (.68) | (.37) | (.01) |
Redemption fees added to paid in capital D | - I | - I | - I | - I | .01 | .01 |
Net asset value, end of period | $ 12.65 | $ 11.22 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 |
Total Return B, C | 13.18% | (4.15)% | (14.10)% | 14.96% | 6.07% | 28.36% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | 1.21% A | 1.20% | 1.14% | 1.11% | 1.09% | 1.05% A |
Expenses net of fee waivers, if any | 1.21% A | 1.20% | 1.14% | 1.11% | 1.09% | 1.05% A |
Expenses net of all reductions | 1.20% A | 1.20% | 1.13% | 1.11% | 1.06% | .99% A |
Net investment income (loss) | .21% A | 1.01% | .22% | (.15)% | .06% | (.08)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 1,580,773 | $ 1,488,736 | $ 1,136,860 | $ 1,233,808 | $ 957,720 | $ 582,689 |
Portfolio turnover rate F | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period November 3, 2004 (commencement of operations) to July 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended | Year ended July 31, |
(Unaudited) | 2009 H | |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 11.22 | $ 10.27 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .03 | .01 |
Net realized and unrealized gain (loss) | 1.47 | .94 G |
Total from investment operations | 1.50 | .95 |
Distributions from net investment income | (.07) | - |
Redemption fees added to paid in capital D, J | - | - |
Net asset value, end of period | $ 12.65 | $ 11.22 |
Total Return B, C | 13.36% | 9.25% |
Ratios to Average Net Assets E, I |
|
|
Expenses before reductions | .91% A | .86% A |
Expenses net of fee waivers, if any | .91% A | .86% A |
Expenses net of all reductions | .91% A | .86% A |
Net investment income (loss) | .51% A | .64% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 43,748 | $ 159 |
Portfolio turnover rate F | 65% A | 51% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. H For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 11.24 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .02 | .10 | .03 | (.02) | .01 | (.01) |
Net realized and unrealized gain (loss) | 1.46 | (.59) | (1.99) | 1.91 | .74 | 2.84 |
Total from investment operations | 1.48 | (.49) | (1.96) | 1.89 | .75 | 2.83 |
Distributions from net investment income | (.06) | (.07) | - | - | (.01) | (.01) |
Distributions from net realized gain | - | (.11) | (.56) | (.68) | (.36) | - |
Total distributions | (.06) | (.18) | (.56) | (.68) | (.37) | (.01) |
Redemption fees added to paid in capital D | - I | - I | - I | - I | .01 | .01 |
Net asset value, end of period | $ 12.66 | $ 11.24 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 |
Total Return B, C | 13.20% | (4.04)% | (14.10)% | 14.99% | 6.08% | 28.36% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | 1.14% A | 1.20% | 1.13% | 1.10% | 1.08% | 1.07% A |
Expenses net of fee waivers, if any | 1.14% A | 1.15% | 1.13% | 1.10% | 1.08% | 1.07% A |
Expenses net of all reductions | 1.14% A | 1.15% | 1.13% | 1.10% | 1.05% | 1.01% A |
Net investment income (loss) | .28% A | 1.06% | .22% | (.13)% | .08% | (.10)% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 34,956 | $ 10,336 | $ 8,584 | $ 11,594 | $ 9,422 | $ 3,761 |
Portfolio turnover rate F | 65% A | 51% | 149% | 67% | 93% | 60% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period November 3, 2004 (commencement of operations) to July 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2010 (Unaudited)
1. Organization.
Fidelity Small Cap Value Fund (the Fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, Small Cap Value, Class F and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are 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 generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, market discount, partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 297,941,423 |
|
Gross unrealized depreciation | (130,466,321) |
|
Net unrealized appreciation (depreciation) | $ 167,475,102 |
|
|
|
|
Tax cost | $ 1,770,685,505 |
|
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $566,535,496 and $583,318,311, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class of the Fund, Small Cap Value as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .86% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution | Service | Paid to | Retained |
Class A | -% | .25% | $ 82,280 | $ 3,258 |
Class T | .25% | .25% | 80,386 | - |
Class B | .75% | .25% | 39,917 | 29,938 |
Class C | .75% | .25% | 125,105 | 28,796 |
|
|
| $ 327,688 | $ 61,992 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 16,612 |
Class T | 3,124 |
Class B* | 9,944 |
Class C* | 605 |
| $ 30,285 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of each class, except for Class F. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each applicable class were as follows:
| Amount | % of |
Class A | $ 112,083 | .34 |
Class T | 55,709 | .35 |
Class B | 13,679 | .34 |
Class C | 42,670 | .34 |
Small Cap Value | 2,386,084 | .29 |
Institutional Class | 30,091 | .23 |
| $ 2,640,316 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $11,830 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily | Weighted Average | Interest |
Borrower | $ 7,401,500 | .39% | $ 635 |
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $3,436 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $197,720.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | 1.40% | $ 34,879 |
Class T | 1.65% | 17,921 |
Class B | 2.15% | 4,312 |
Class C | 2.15% | 13,639 |
|
| $ 70,751 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $27,462 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $3.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 159,193 | $ 252,162 |
Class T | 36,903 | 111,704 |
Class B | - | 20,177 |
Class C | - | 45,207 |
Small Cap Value | 6,230,380 | 7,822,387 |
Class F | 28,266 | - |
Institutional Class | 105,378 | 49,636 |
Total | $ 6,560,120 | $ 8,301,273 |
Semiannual Report
9. Distributions to Shareholders - continued
Six months ended | Year ended | |
From net realized gain |
|
|
Class A | $ - | $ 496,925 |
Class T | - | 350,121 |
Class B | - | 77,046 |
Class C | - | 207,577 |
Small Cap Value | - | 10,883,170 |
Institutional Class | - | 80,333 |
Total | $ - | $ 12,095,172 |
A Distributions for Class F are for the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,675,860 | 2,028,986 | $ 20,287,531 | $ 19,478,233 |
Reinvestment of distributions | 12,276 | 64,970 | 146,358 | 694,477 |
Shares redeemed | (969,223) | (1,588,437) | (11,841,680) | (14,658,645) |
Net increase (decrease) | 718,913 | 505,519 | $ 8,592,209 | $ 5,514,065 |
Class T |
|
|
|
|
Shares sold | 538,429 | 1,489,054 | $ 6,425,686 | $ 15,806,614 |
Reinvestment of distributions | 3,030 | 40,641 | 35,906 | 449,360 |
Shares redeemed | (413,582) | (1,680,727) | (5,030,046) | (14,685,646) |
Net increase (decrease) | 127,877 | (151,032) | $ 1,431,546 | $ 1,570,328 |
Class B |
|
|
|
|
Shares sold | 102,176 | 305,827 | $ 1,205,333 | $ 3,051,319 |
Reinvestment of distributions | - | 7,759 | - | 85,943 |
Shares redeemed | (87,140) | (335,978) | (1,036,071) | (2,971,686) |
Net increase (decrease) | 15,036 | (22,392) | $ 169,262 | $ 165,576 |
Class C |
|
|
|
|
Shares sold | 507,548 | 832,906 | $ 6,054,371 | $ 7,981,000 |
Reinvestment of distributions | - | 19,410 | - | 217,621 |
Shares redeemed | (204,893) | (694,752) | (2,449,563) | (6,287,773) |
Net increase (decrease) | 302,655 | 157,564 | $ 3,604,808 | $ 1,910,848 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Small Cap Value |
|
|
|
|
Shares sold | 21,234,724 | 61,277,579 | $ 258,095,114 | $ 600,357,815 |
Reinvestment of distributions | 507,903 | 1,741,583 | 6,101,827 | 18,397,974 |
Shares redeemed | (29,529,999) | (25,782,005) | (357,109,003) | (237,589,067) |
Net increase (decrease) | (7,787,372) | 37,237,157 | $ (92,912,062) | $ 381,166,722 |
Class F |
|
|
|
|
Shares sold | 3,524,076 | 14,205 | $ 43,507,553 | $ 144,857 |
Reinvestment of distributions | 2,350 | - | 28,266 | - |
Shares redeemed | (83,353) | (18) | (1,041,511) | (181) |
Net increase (decrease) | 3,443,073 | 14,187 | $ 42,494,308 | $ 144,676 |
Institutional Class |
|
|
|
|
Shares sold | 2,081,830 | 479,087 | $ 25,294,424 | $ 4,626,811 |
Reinvestment of distributions | 7,512 | 8,812 | 90,344 | 93,632 |
Shares redeemed | (248,838) | (288,597) | (3,067,092) | (2,736,358) |
Net increase (decrease) | 1,840,504 | 199,302 | $ 22,317,676 | $ 1,984,085 |
A Share transactions for Class F are for the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
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, the Fidelity Freedom Funds were the owners of record, in the aggregate, of approximately 38% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
Fidelity Research & Analysis Company
FIL Investment Advisors
FIL Investments (Japan) Limited
FIL Investment Advisors (U.K.) Ltd.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
ASCVI-USAN-0310 1.803748.106
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 Securities Fund'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 Securities Fund'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 Securities Fund
By: | /s/Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
|
|
Date: | March 26, 2010 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
|
|
Date: | March 26, 2010 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
|
|
Date: | March 26, 2010 |